FDIC Issues Revised Scenarios for 2017 Stress Tests

On February 13, the FDIC released revised economic scenarios for use by certain financial institutions with total consolidated assets of more than $10 billion for 2017 stress tests. According to a statement from the agency, the previously released scenarios contained incorrect historical values for the BBB corporate yield in 2016. The Fed and OCC, with whom the FDIC works develop and distribute the scenarios, also issued revised data.

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CFPB Releases Second Webinar on New HMDA Rule

On February 14, the CFPB announced the availability of a second Webinar on the New Home Mortgage Disclosure Act (HMDA) Rule (amending Regulation C), a Rule that was itself finalized in late 2015 but that is predominantly not effective until January 1, 2018, or later. The new Webinar, with audio and closed-captioning over a slide-deck, focuses solely on identifiers and other “data points,” including the race and ethnicity of an applicant or borrower, which must be collected under the New HMDA Rule. In August 2016, the CFPB released an initial Webinar on the same Rule, covering a broader range of topics and without the focus on data points in the newer Webinar.

In addition, the Bureau has now made available a one-page chart to summarize the options a financial institution has for collecting and reporting ethnicity and race information under current Regulation C, Regulation C effective January 1, 2018, and the Bureau’s Official Approval Notice (issued on September 23, 2016). All of the above-mentioned resources and many more related materials (such as an unofficial transcript we prepared of the initial Webinar) can also be found in BuckleySandler’s HMDA Resource Center.

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FinCEN Proposes SAR Data Fields Revisions

FinCEN published, at 82 FR 9109 in the Federal Register, a notice and request for comment on proposed updates and revisions to the collection of information filings by financial institutions required to file such reports under the Bank Secrecy Act (“BSA”). While the notice does not propose any new regulatory requirements or changes to the requirements related to suspicious activity reporting, it suggests changes to the required data fields used when filing SARs under the BSA. The majority of the proposed changes would alter the “checklist” of violations in Part II of the filings, including the addition of several fields related to cyber events. Written comments must be received on or before April 3.

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Law Firm Raided, Founders Arrested, Tied to Bribery Investigation

On February 8, authorities in Panama raided the offices of a law firm at the center of the sprawling Panama Papers scandal, and arrested the firm’s founders.  Reuters reports that Panama’s Attorney General announced on Twitter that the raid and arrests were tied to the investigation of the Brazilian construction company that in December reached a $3.5 billion combined global settlement with U.S., Brazilian, and Swiss authorities to resolve FCPA allegations.  Until now, the investigations spawned by the 2016 release of millions of documents stolen from the law firm were focused on money laundering and tax evasion.  The tie to the company’s investigation brings anti-bribery investigations into the mix.

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CEO Questioned by UK SFO in Bribery Investigation

Less than a month ago, as previously reported on FCPA Scorecard, a UK-based manufacturer and global distributor for the civil aerospace, defense aerospace, marine, and energy sectors, entered into deferred prosecution agreements with the DOJ and UK SFO  to resolve allegations that the company conspired to violate anti-bribery laws around the world.  Now, Reuters reports that the company’s CEO has been questioned by the SFO regarding bribery allegations.  According to the article, the SFO refused to comment on the report, citing concerns about an ongoing investigation.

Both the DOJ and SFO have repeatedly stated that they intend to pursue bribery cases against individuals.  But there is so far no indication that the DOJ is also investigating the company’s CEO.  Although DOJ could pursue such an investigation in the future, the agency may also defer to the SFO to handle the matter.

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