Weekly Rewind...News from Your Regulators

The 2023 CSG Audit calendar is now open!!!

Contact us to schedule your 2023 Regulatory Compliance Reviews. Visit our website at complianceservicesgroup.com or email our Lead Auditor directly at tricia.briggs@complianceservicesgroup.com.

FDIC Issues Consent Order

Consent Order – The FDIC assessed an ex-bank chairman a penalty of $35,000 and required him to attend a training session on Regulation O and regulations concerning insider transactions for over 30 violations of Regulation O’s insider lending limits from March 2019 through February 2020 and 77 violations of Regulation O’s requirement to obtain prior approval from the Bank board of directors for loans to insiders exceeding 5 percent of the Bank’s unimpaired capital and unimpaired surplus from November 2017 through February 2020. 

NCUA Interest Rate Ceiling

NCUA Interest Rate Ceiling - The NCUA Board unanimously approved maintaining the current 18-percent interest rate ceiling for loans made by federal credit unions for a new eighteen-month period from March 11, 2023, through September 10, 2024. The Federal Credit Union Act caps the interest rate on federal credit union loans at 15 percent; however, the NCUA Board has the discretion to raise that limit for 18-month periods if interest-rate levels could threaten safety and soundness of individual credit unions. The 18-percent cap applies to all federal credit union lending, except originations made under NCUA’s payday alternative loan program, which are capped at 28 percent.

FinCEN Issues Alert on Russian Investments

FinCEN Alert - FinCEN issued an alert to financial institutions regarding potential investments in the U.S. commercial real estate sector by sanctioned Russian elites, oligarchs, their family members, and the entities through which they act. The alert lists red flags and typologies involving potential sanctions evasion in the commercial real estate sector and reminds financial institutions of their Bank Secrecy Act reporting obligations. The alert, which is the fourth Russia-related alert FinCEN has issued since Russia’s invasion of Ukraine in 2022, further complements ongoing U.S. government efforts to isolate sanctioned Russian elites, oligarchs, and their proxies from the international financial system.  

Fed Fines For Fraudulent PPP Loans

Fraudulent PPP Loans – The Federal Reserve fined a New York bank for nearly $2.3 million for processing six Paycheck Protection Loans in which applications contained “significant indications” of potential fraud. The six loans totaled approximately $1.1 million. 

Federal Reserve Issues Supervision Policy

Federal Reserve Policy Statement - To promote a level playing field for all banks with a federal supervisor, regardless of deposit insurance status, the Federal Reserve issued a policy statement stating that all banks supervised by the Federal Reserve will be subject to the same limitations on activities, including novel banking activities like crypto-asset-related activities – regardless of their deposit insurance status. The statement reiterates that banks must both ensure that the activities they engage in are allowed under the law, and conduct their business in a safe and sound manner. For instance, a bank should have in place risk management processes, internal controls, and information systems that are appropriate and adequate for the nature, scope, and risks of its activities.

Visit our Website!