PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday, July 1, 2021
July 01, 2021
FedACTion Task Force
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Major Developments
Interagency Statement on the Issuance of the Initial National Priorities Addressing Anti-Money Laundering/Countering the Financing of Terrorism
June 30, 2021
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, State bank and credit union regulators, and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued a statement on the initial Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) National Priorities, as required by the Anti Money Laundering Act of 2020 (AML Act). When implementing regulations are finalized, financial institutions will be required to ensure their AML Programs address the eight priorities:
(1) corruption;
(2) cybercrime, including relevant cybersecurity and virtual currency considerations;
(3) foreign and domestic terrorist financing;
(4) fraud;
(5) transnational criminal organization activity;
(6) drug trafficking organization activity;
(7) human trafficking and human smuggling; and
(8) proliferation financing.
The promulgation of national AML/CFT priorities are intended to assist the industry address key areas of regulatory focus. Under the AML Act, regulations are required to be issued within 180 days of the issuance of the priorities, and such regulations are expected to be finalized in 2022.
- Interagency Statement
- FDIC Financial Institution Letter
- FRB Supervision and Regulation Letter
- OCC Bulletin
New York Superintendent Lacewell Announces DFS Issues Guidance on Ransomware Prevention
June 30, 2021
Superintendent Linda A. Lacewell of the New York Department of Financial Services (DFS) announced that the DFS has issued new guidance on preventing ransomware attacks. In the guidance, DFS identifies cybersecurity controls that significantly reduce the risk of a ransomware attack and should be implemented by companies wherever possible.
Congress
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.
Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.
Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.
Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.
Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.
Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.
Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.
U.S. House of Representatives
Committee on Financial Services
America on “FIRE”: Will the Crypto Frenzy Lead to Financial Independence and Early Retirement or Financial Ruin?
The Subcommittee on Oversight and Investigations of the House Committee on Financial Services held a hearing titled “America on ‘Fire’: Will the Crypto Frenzy Lead to Financial Independence and Early Retirement or Financial Ruin?” The hearing significantly focused on the need to regulate cryptocurrencies.
June 30, 2021
Committee on Small Business
Hearing Addresses Need to Increase Entrepreneurship to Drive Economic Recovery
June 30, 2021
The House Small Business Committee Subcommittee on Innovation, Entrepreneurship, and Workforce Development, held a hearing focused on reversing the decades-long trend of declining entrepreneurship in the United States. The hearing examined policy options to incentivize new business creation and ultimately drive equitable economic recovery.
Velázquez Introduces Bill to Launch Student Loan Debt Forgiveness Program for Entrepreneurs
June 30, 2021
House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) introduced a bill to establish a student loan debt forgiveness and deferment program for entrepreneurs. The Supporting America’s Young Entrepreneurs Act of 2021 seeks to lower one of the most prominent barriers to starting a business, outstanding student loan debt.
Federal Agencies
U.S. Department of the Treasury
Treasury Announces It Has Disbursed More than $13.1 Billion to Tribal Governments
June 30, 2021
The Department of the Treasury announced that it has distributed more than $13.1 billion to Tribal governments through the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) established by the American Rescue Plan. This represents the disbursement of over 65% of the $20 billion in funding appropriated for Tribal governments in the American Rescue Plan under the SLFRF, a key milestone in the whole-of government effort to help communities fight the pandemic, address its economic fallout, and lay the groundwork for a strong recovery.
Deputy Secretary Wally Adeyemo’s Meeting with LGBTQ+ Business Leaders
June 30, 2021
Deputy Secretary of the U.S. Treasury (Treasury) Wally Adeyemo attended a virtual roundtable discussion focused on LGBTQ+ economic inclusion, hosted by global LGBTQ+ business network Out Leadership. The Deputy Secretary underscored Treasury’s commitment to using its tools and global voice to advance equity, particularly toward an equitable economic recovery. The Deputy Secretary and business leaders discussed the importance of employment non-discrimination, supplier diversity, representation of LGBTQ+ people on corporate boards, and the role of the private sector in reducing barriers for LGBTQ+ individuals and business owners.
Federal Reserve Bank of New York
Blog: Banking the Unbanked: The Past and Future of the Free Checking Account
June 30, 2021
The Federal Reserve Bank of New York’s Liberty Street Economics blog issued a post titled “Banking the Unbanked: The Past and Future of the Free Checking Account.”
Blog: Hold the Check: Overdrafts, Fee Caps, and Financial Inclusion
June 30, 2021
The Federal Reserve Bank of New York’s Liberty Street Economics blog issued a post titled “Hold the Check: Overdrafts, Fee Caps, and Financial Inclusion.”
Federal Deposit Insurance Corporation
Report: Private-Equity-Backed Acquisitions of Failed Banks, 2008–2013
June 30, 2021
The Federal Deposit Insurance Corporation released a staff report titled “Private-Equity-Backed Acquisitions of Failed Banks, 2008-2013.”
Remarks by Jelena McWilliams at “Fintech: A Bridge to Economic Inclusion”
June 29, 2021
Jelena McWilliams, Chairman of the Board of Directors at the Federal Deposit Insurance Corporation, gave remarks at “Fintech: A Bridge to Economic Inclusion.”
U.S. Securities and Exchange Commission
SEC Engages with Students for Their Perspectives on Emerging Issues
June 30, 2021
Chair of the Securities and Exchange Commission Gary Gensler and Investor Advocate Rick Fleming hosted a roundtable discussion with the students and faculty of the University of Texas at Arlington's Department of Finance and Real Estate. Students presented on diversity and disclosure in investment management and Crypto-ETFs. The rountable was the latest in a series of University Roundtables hosted by the Office of the Investor Advocate to gain the perspectives of young investors and future investors regarding emerging issues in the financial markets.
Consumer Financial Protection Bureau
Blog: The Trends of Commercial Credit Reporting on Consumer Credit
June 30, 2021
The Consumer Financial Protection Bureau released a blog titled “The Trends of Commercial Credit Reporting on Consumer Credit.”
Federal Financial Institutions Examination Council
Financial Regulators Update Examiner Guidance on Financial Institutions’ Information Technology Architecture, Infrastructure, and Operations
June 30, 2021
The Federal Financial Institutions Examination Council (FFIEC) today issued a new booklet in the FFIEC Information Technology Examination Handbook series, titled “Architecture, Infrastructure, and Operations.”
- Booklet
- Handbook
- Press Release
- OCC Bulletin
- FDIC Financial Institution Letter
- FRB Supervision and Regulation Letter
Federal Housing Finance Agency
FHFA Announces New and Expanded Statistical Products From the National Mortgage Database
June 30, 2021
The Federal Housing Finance Agency (FHFA) released a set of new and expanded statistical products from the National Mortgage Database (NMDB®). FHFA expanded the national statistics for new residential mortgage originations to include monthly, quarterly, and annual series for home purchase and refinance mortgages in all major market segments. FHFA also added a new series of national and state level statistics for outstanding residential mortgages and an expanded series of national mortgage performance statistics for different market segments.
Fannie Mae
Fannie Mae Releases May 2021 Monthly Summary
June 30, 2021
Fannie Mae released its May 2021 Monthly Summary. The monthly summary report contains information about Fannie Mae’s monthly and year-to-date activities for its gross mortgage portfolio, mortgage-backed securities and other guarantees, interest rate risk measures, serious delinquency rates, and loan modifications.
Freddie Mac
White Paper: Freddie Mac Multifamily Examines the Impact of the End of Eviction Moratoriums on Renters
June 30, 2021
A new white paper from Freddie Mac Multifamily studies the impact of the end of eviction moratoriums and role of rental assistance as the nation recovers from the economic impact of COVID-19. As eviction moratoriums and renter protections lapse, Freddie Mac is encouraging renters and property owners to proactively understand and seek available rental assistance to help mitigate the remaining economic challenges as the country emerges from the pandemic.
State Agencies
California Department of Financial Protection and Innovation
2020 Report of Activity under Small Dollar Loan Pilot Program
June 30, 2021
The California Department of Financial Protection and Innovation released its 2020 Annual Report of Activity under Small Dollar Loan Pilot Program.
International
European Commission
Consumer Protection: Commission Revises EU Rules on Product Safety and Consumer Credit
June 30, 2021
The European Commission (EC) proposed revisions of two sets of European Union (EU) rules to enhance consumer rights in a world reshaped by digitalization and the COVID-19 pandemic. The Commission is reinforcing its safety net for EU consumers, for example, by making sure that dangerous products are recalled from the market or that credit offers are presented to consumers in a clear way, easily readable on digital devices. The proposal updates both the existing General Product Safety Directive as well as the EU rules on consumer credit to safeguard consumers.
- Directive 2001/95/EC
- Directive 2008/48/EC
- Proposal
- Factsheet General Product Safety
- Factsheet Consumer Credit
- Press Release
- Press Speaking Points by Commissioner Rynders
- Press Speaking Points by Vice President Jaurova
Bank of England
Speech: Thirty Years of Hurt, Never Stopped Me Dreaming
June 30, 2021
On his last day as the Bank of England’s (BoE) Chief Economist, Andy Haldane shared his experience of working at the BoE for over 30 years in his speech titled “Thirty Years of Hurt, Never Stopped Me Dreaming.”
Blog: Will Cash Die Out?
June 30, 2021
The Bank of England’s KnowledgeBank blog issued a post titled “Will Cash Die Out?”
UK Financial Conduct Authority
FCA Review Finds Weaknesses in Some ‘Host’ Authorized Fund Management Firms’ Governance and Operations
June 30, 2021
The Financial Conduct Authority (FCA) called for so-called ‘host’ Authorized Managers (AFMs) to improve their standards following a review of firms. The FCA found that, while some firms were operating well, others did not meet FCA standards. The FCA found weaknesses in governance structures, conflicts of interest management and operational controls.
Administration Changes
Appointments/Confirmation Hearings
Department of the Treasury - Janet Yellen (effective January 26, 2021)
Consumer Financial Protection Bureau - Rohit Chopra (Nominee)
- Acting Director: Dave Uejio (January 20, 2020)
- Confirmation hearing held on March 2, 2021
- Committee approval March 10, 2021
Securities and Exchange Commission - Gary Gensler (effective April 17, 2021)
Small Business Administration - Isabella Casillas Guzman (effective March 16, 2021)
Commodity Futures Trade Commission
Financial Crimes Enforcement Network
National Credit Union Administration - Todd M. Harper
Department of Housing and Urban Development - Marcia Fudge (effective March 10, 2021)
Department of Education - Dr. Miguel Cardona (effective March 2, 2021)