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FinCEN has released its Year in Review for Fiscal Year 2023, which is intended to help stakeholders gain insight into the collection and use of Bank Secrecy Act data, including FinCEN’s efforts to support law enforcement and national security agencies. The Year in Review includes statistics from fiscal year 2023 on BSA reporting and how it is queried and used by law enforcement agencies. It also includes information on how FinCEN uses and analyzes BSA reporting to fulfill its mission, including to support alerts, trend analyses, and regulatory actions.

Yesterday, the Treasury Department announced that OFAC had sanctioned the Ecuador-based Los Lobos Drug Trafficking Organization and its leader Wilmer Geovanny Chavarria Barre (also known as “Pipo”).

Also yesterday, the Department of State reported its imposition of sanctions on "Lion's Den," a military Palestinian group centered in Nablus's Old City in the West Bank.

For the names and identification information of the designated parties, see the June 6, 2024, BankersOnline OFAC Update.

OFAC has posted a Notice that it has amended the Syrian Sanctions Regulations (31 C.F.R. Part 542) to, among other things, implement the relevant provisions of a May 1, 2012 Executive order regarding foreign sanctions evaders with respect to Syria and Iran, and certain provisions of the Iran Threat Reduction and Syria Human Rights Act of 2012, the Countering America’s Adversaries Through Sanctions Act, and the Caesar Syria Civilian Protection Act of 2019. In addition to new prohibitions, OFAC is adding several relevant definitions and interpretations and one new general license. OFAC is also incorporating, with amendments, one general license; and updating six general licenses. The amendments were published at 89 FR 48310 in today's Federal Register, and are now effective.

OFAC has also published a list of areas of northeast and northwest Syria in which activities are authorized under General License 22,

OFAC also issued a new Syria Frequently Asked Question (FAQ 1180) and amended a number of Syria Frequently Asked Questions (FAQs 205, 231, 232, 934, and 938).

The FDIC has issued its June 2024 list of banks examined for CRA Compliance, which includes 61 financial institutions whose CRA evaluation ratings were assigned in March 2024. Fifty-three of those evaluations were rated Satisfactory. Four banks' evaluations were rated Outstanding:

• Cape Cod Five Cents Savings Bank, The, Hyannis, Massachusetts
• Medallion Bank, Salt Lake City, Utah
• Stock Exchange Bank, The, Woodward, Oklahoma
• Tustin Community Bank, Tustin, California

Four of the banks' evaluations were rated Needs to Improve:

• Century Bank of Kentucky, Inc., Lawrenceburg, Kentucky
• First Bank of Ohio, Tiffin, Ohio
• Milestone Bank, Salt Lake City, Utah
• United Savings Bank, Philadelphia, Pennsylvania

The CFPB has announced it has issued Consumer Financial Protection Circular 2024-03, which addresses the use of unlawful or unenforceable terms and conditions on contracts for consumer financial products and services, which may violate the prohibition on deceptive acts or practices in the Consumer Financial Protection Act (CFPA).

“Covered persons” and “service providers” under the CFPA must comply with the prohibition on deceptive acts or practices in the CFPA. The inclusion of certain terms in contracts for consumer financial products or services may violate the prohibition when applicable federal or state law renders such contractual terms, including those that purport to waive consumer rights, unlawful or unenforceable.

UPDATE: Published in the 6/21/2024 Federal Register, at 89 FR 51955.

The CFPB has announced it has finalized a rule, "Nonbank Registration," to be added to Title X of the C.F.R. as Part 1092. The rule will establish a registry to detect and deter corporate offenders that have broken consumer laws and are subject to federal, state, or local government or court orders. The registry will also help the CFPB to identify repeat offenders and recidivism trends.

The CFPB’s new registry will facilitate better understanding of bad actors that seek to restart a scam, fraudulent scheme, or other illegal conduct that harms the public. The CFPB expects that the registry will be used by state attorneys general, state regulators, and a range of other law enforcement agencies. The registry will also assist investors, creditors, business partners, and members of the public that are conducting due diligence or research on financial firms bound by law enforcement orders.

The CFPB’s final rule requires covered nonbank companies to:

• Register with the CFPB when they have been caught violating consumer law: Generally, covered nonbanks will report certain final agency and court orders and judgments to the CFPB. These orders include consent and stipulated orders brought under consumer protection laws.
• Provide an attestation from a senior executive that the company is not flouting orders: For nonbank companies supervised by the CFPB, the entity subject to an order will provide a written attestation from an executive that confirms compliance with any relevant orders.

The rule will become effective September 16, 2024, with implementation dates that are 30, 120, or 210 days after the effective date.

• Executive summary
• Publication update: Published at 89 FR 56028 on 7/8/2024

The OCC has released 19 CRA evaluations that became public in May for national banks and federal savings associations. Eleven of those institutions received rating of Satisfactory. Eight institutions received ratings of Outstanding:

• PNC Bank, National Association, Wilmington, Delaware
• First National Bank, Cloverdale, Indiana
• United Fidelity Bank, F.S.B., Evansville, Indiana
• Industrial Commercial Bank of China (USA), National Association, New York, New York
• Keybank National Association, Cleveland, Ohio
• Texas National Bank, Mercedes, Texas
• Community National Bank, Derby, Vermont
• Hilltop National Bank, Casper, Wyoming

The Federal Reserve Board's archive of CRA evaluations of state member banks shows that the Reserve Banks made public ten CRA evaluation in May. Eight of those evaluations were rated Satisfactory, and Outstanding ratings were assigned to:

• Bank of Hawaii, Honolulu, Hawaii
• First State Bank, Anadarko, Oklahoma

The FDIC has posted its Community Reinvestment Act examination schedules for the third and fourth quarters of 2024.

The FDIC has issued FIL-31-2024 to remind all FDIC-insured financial institutions of the annual Summary of Deposits Survey as of June 30, 2024. All institutions with branch offices are required to submit the survey; institutions with only a main office are exempt. Survey responses are due by July 31, 2024, and no extensions will be granted.

• The description for the Home Banking service level (13) has been expanded to include mobile applications (mobile apps). Refer to Section 7 of the SOD instructions.
• No later than September 30, 2024, SOD survey results will be published on the FDIC’s SOD Deposit Market Share website.
• The FDIC’s SOD Deposit Market Share website will be discontinued by the end of 2024, and will be replaced by a new and improved SOD application that is available for preview now. Refer to Section 1G of the SOD instructions for more information.
• Institutions must either complete the survey directly in the Central Data Repository (CDR), or use vendor software to prepare and submit their survey responses to the CDR. Software vendors available to assist with the SOD filing are listed under “Filing Procedures” within this FIL.
• Consistent with the prior year, password requirements have been implemented for the CDR. Refer to Section 5C of the SOD instructions.
• Reporting instructions are available on the FDIC’s Summary of Deposits website. Refer to Section 5I of the SOD instructions for amending SOD surveys after initial submission.

On Friday, the Treasury Department reported that OFAC has targeted four entities associated with OFAC-designated Rayan Roshd Afzar Company that have procured critical parts for Iran’s unmanned aerial vehicle (UAV) program. Additionally, OFAC is targeting an Iranian executive of Iran Aviation Industries Organization, a subsidiary of Iran’s Ministry of Defense and Armed Forces Logistics that oversees UAV manufacturers Iran Aircraft Manufacturing Industrial Company and Qods Aviation Industries.

For the names and identification information of the designated parties, see the May 31, 2024, BankersOnline OFAC Update.