Top Story Compliance Related

The OCC has released its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the fourth quarter of 2024 and the first quarter of 2025.

The Federal Reserve Board on Wednesday announced final individual capital requirements for all large banks, effective on October 1.

Large bank capital requirements are informed by the Board's stress test results, which provide a risk-sensitive and forward-looking assessment of capital needs. The table in the Large Bank Capital Requirements document shows each bank's common equity tier 1 capital requirement, which is made up of several components, including:

• The minimum capital requirement, which is the same for each bank and is 4.5 percent;
• The stress capital buffer requirement, which is based in part on the stress test results and is at least 2.5 percent; and
• If applicable, a capital surcharge for the largest and most complex banks, which is updated in the first quarter of each year to account for the overall systemic risk of each of these banks.

If a bank's capital dips below its total requirement, the bank is subject to automatic restrictions on both capital distributions and discretionary bonus payments.

The Board also announced that it had modified the stress capital buffer requirement for Goldman Sachs, after the firm's request for reconsideration.

Yesterday, FinCEN announced two final rules designed to help safeguard the residential real estate and investment adviser sectors from illicit finance.

The final residential real estate rule, published [89 FR 70258] in today’s Federal Register and effective December 1, 2025, will require certain industry professionals to report information to FinCEN about non-financed transfers of residential real estate to a legal entity or trust, which present a high illicit finance risk. The rule will increase transparency, limit the ability of illicit actors to anonymously launder illicit proceeds through the American housing market, and bolster law enforcement investigative efforts.

• Residential Real Estate Rule Fact Sheet
• FAQs on Real Estate Reports

The final investment adviser rule, scheduled for Federal Register publication on September 4, and effective January 1, 2026, will apply anti-money laundering/countering the financing of terrorism (AML/CFT) requirements—including AML/CFT compliance programs and suspicious activity reporting obligations—to certain investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC), as well as those that report to the SEC as exempt reporting advisers. The rule will help address the uneven application of AML/CFT requirements across this industry.

• Investment Advisor Rule Fact Sheet

The Federal Trade Commission yesterday announced an update to the fees telemarketers must pay to access phone numbers on the National Do Not Call (DNC) Registry in Fiscal Year (FY) 2025, which starts on October 1, 2024.

The cost of accessing a single area code in the Registry will be $80 in FY 2025, which is an increase of $2 from FY 2024. The maximum charge to any single entity for accessing all area codes nationwide is now $22,038 (up from 21,402 in FY 2024). The fee for accessing an additional area code for a half year will increase $1 from FY 2024, to $40.

The OCC has announced community bank director and senior management workshops scheduled in nine cities across the country in September and October. The list includes the OCC's basic Building Blocks workshop and its Risk Management Series, which includes workshops on Risk Governance, Credit Risk, Operational Risk, Compliance Risk, and Capital Markets.

Most of the sessions are available for both in-person or virtual attendance.

The Federal Trade Commission has announced that Care.com, Inc., has agreed to a settlement of FTC claims that the child and older adult care gig platform has systematically deceived caregivers who were looking for jobs while failing to give families seeking care a simple way to cancel their paid memberships.

In its complaint, the FTC alleges that Care.com's marketing messages about both the number of jobs available on their site and the amount workers could expect to be paid were deceptive. The complaint also alleges that Care has used a number of unlawful tactics, sometimes referred to as dark patterns, to prevent consumers – both job posters and job seekers – from being able to cancel their subscriptions. When consumers try to cancel Care subscriptions, they must click through a number of unrelated links to find information about how to cancel. According to the lawsuit, consumers regularly complained about difficulties in finding the cancellation options, with many resorting to searching online for instructions on how to cancel.

Under the proposed settlement, Care.com must turn over $8.5 million to be used to refund consumers harmed by their practices, as well as requiring the company to be able to back up the earnings claims it makes and be honest about the number of jobs available on their site. They must also provide users with a simple cancellation method for any negative option subscriptions available on their website.

Yesterday, FinCEN issued a press release reminding financial institutions to monitor for and report suspicious transactional activity related to the illicit fentanyl supply chain and the trafficking of illicit fentanyl and other synthetic opioids.

FinCEN has previously published resources on the trafficking of fentanyl, fentanyl analogues, and other synthetic opioids and the precursor chemicals and associated manufacturing equipment needed to synthesize these deadly drugs:

• Supplemental Advisory on the Procurement of Precursor Chemicals and Manufacturing Equipment Used for the Synthesis of Illicit Fentanyl and Other Synthetic Opioids (June 2024)
• Advisory to Financial Institutions on Illicit Financial Schemes and Methods Related to the Trafficking of Fentanyl and Other Synthetic Opioids (August 2019)

On Friday, the Department of the Treasury announced that OFAC and the State Department targeted nearly 400 individuals and entities both in Russia and outside its borders—including in Asia, Europe, and the Middle East—whose products and services enable Russia to sustain its war effort and evade sanctions. The United States government will continue to support Ukraine as it defends its independence and hold Russia accountable for its aggression.

For the names and identification information of the designated parties and vessels, see this August 23, 2024, BankersOnline OFAC Update.

The CFPB has released a Filing Instruction Guide (FIG) for covered nonbanks subject to the CFPB's Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders Final Rule (also referred to as the NBR Orders Rule) (12 CFR Part 1092, effective September 16, 2024), which establishes a nonbank registry of certain nonbanks with public agency and court orders. The CFPB also issued a sample registration form and instructions for viewing Regulatory Actions in NMLS.

The FIG, sample registration form, and other Nonbank Registration resources can be found on the Bureau's Nonbank Registry portal and public database webpage.

The CFPB reports it has ordered Fay Servicing LLC to pay a $2 million penalty for violations of mortgage servicing laws, as well as for violations of a 2017 agency order that addressed its illegal foreclosure practices. The company failed to implement the order’s requirements and continued to break the law. Fay Servicing took prohibited foreclosure actions against borrowers requesting mortgage assistance, failed to offer borrowers mortgage assistance options available to them, and overcharged for private mortgage insurance. In addition to the civil money penalty, the CFPB’s order requires Fay Servicing to pay consumer redress of $3 million and to invest $2 million to update its servicing technology and compliance management systems. The order also puts compensation limits on Edward Fay, the company’s Chairman of the Board and Chief Executive Officer (CEO), if Mr. Fay does not take actions necessary to ensure compliance with the order.

In 2017, the CFPB took action against Fay Servicing for failing to provide mortgage borrowers with the protections against foreclosure that are required by consumer financial protection law. The CFPB found that the company kept borrowers in the dark about critical information about the process of applying for foreclosure relief. The CFPB also found instances where the servicer illegally launched or moved forward with the foreclosure process when borrowers were actively seeking help to save their homes. The CFPB ordered Fay Servicing to stop its illegal practices and to pay $1.15 million to harmed borrowers.