Regulatory Compliance Update June 2018

Regulatory Compliance Update

By: Hickman Beckner, Senior Vice President

I have reviewed the Compliance News for May 2018. The acting director of the CFPB, Mick Mulvaney, continues to reshape the agency.  Mr. Mulvaney has dismissed the Bureau’s advisory panel. The regulatory flow from the CFPB has been greatly reduced.

FINCen – The Financial Crimes Enforcement Network has temporarily postponed implementation for Customer Due Diligence (CDD) when automatically renewing a CD. The institution must obtain certified beneficial ownership information (CBOI) when opening a CD or on the next renewal.  For subsequent renewals a new CBOI is not required if the customer agrees to inform the institution of any change in the information.  The temporary extension postpones the effective date by 90 days to August 9, 2018.

IRS – Announced the inflation-adjusted limits for Health Savings Plans for 2019.

  • Reduced the contribution limit for 2018 for individuals with family coverage.

Significant Dates:

July 1, 2018 – Effective date for Federal Reserve’s final changes to check collection and return procedures in Regulation CC. The new regulations encourage banks to clear and return checks electronically. This will make returned items (NSF checks) be returned sooner.

July 13, 2018 – Comments due on regulatory capital rules regarding the transition to Current Expected Credit Losses methodology for credit loss allowance.

April 1, 2019 – Effective date for CFPB’s final rules for prepaid accounts under Regulation Z and E.

August 19, 2019 – Compliance date for CFPB’s final rule for payday loans.

Emerging Legislation:

There have been many bills introduced in Congress.

GUIDE Compliance Act – Would ensure that companies regulated by the CFPB would have clear understanding of how to comply with consumer finance regulations.  The CFPB would be required to issue guidance that is necessary and appropriate to carry out the regulations.   It would also require that the CFPB publish definitions, criteria, time lines and processes in the Federal Register within one year of enactment of final rules.

Economic Growth, Regulatory Relief and Consumer Protection Act has been signed into law.  This act impacts smaller institutions that hold mortgages on their balance sheet, provides exemption from appraisal requirements for rural areas, requires credit reporting agencies maintain fraud alerts for at least one year and provide the service for free.

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