Regulatory Compliance Update November 2018

Regulatory Compliance Update

By: Hickman Beckner, Senior Vice President

I have reviewed the Compliance News for October 2018.  The IRS has updated reporting requirements and FinCEN has issued permanent Consumer Due Diligence rules.

IRS – Added the following countries that have information exchange agreements with the United States:

  • Argentina
  • Moldova

1042-S reporting is required for interest paid to non-resident aliens who are residents of foreign countries that have exchange agreements.

The changes become effective for interest paid starting January 1, 2019.

FinCEN – Published a permanent ruling that eliminates the customer due diligence requirements to obtain identification documentation for customers who have automatically renewing CD’s.  This does not impact loan or collection systems.

Significant Dates:

November 19, 2018 – Comments due on the OCC’s proposal to allow federal savings associations with assets of $20 billion or less to elect to operate with national bank powers.

November 19, 2018 – Comments due on CFPB’s interim final rule that updates the model disclosures in Fair Credit Reporting include information on:

  1. A consumer’s right to a free “national security freeze” and
  2. The new one-year minimum time frame that applies to an initial fraud alert in a consumer’s credit file.

November 27, 2018 – Comments due on FFIEC’s proposed changes to the Call Report that will reflect the revised accounting for credit losses under FASB Accounting Standards Update No. 2016-13.

January 1, 2019 – Effective date of IRS final regulations that remove automatic extension of time to file W-2 forms and Forms 1099-MISC that report non-employee compensation.

April 1, 2019 – Effective date for CFPB rules for Prepaid Accounts which implement changes to Regulation Z and Regulation E.

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

Emerging Legislation:

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.

Protect Affordable Mortgages for Veterans Act:  Addresses the conflicts with the Economic Growth Regulatory Relief and Consumer Protection Act to allow GNMA to guarantee VA refinance mortgages and allow the mortgages to be included in GNMA securities.

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