Top Story Compliance Related

The Federal Trade Commission yesterday reported it is sending more than $2.6 million in refunds to small businesses harmed by payment processor First American Payment Systems.

The FTC filed a lawsuit in July 2022 against First American, charging the company with trapping small businesses with hidden terms, surprise exit fees, and zombie charges. The FTC alleged the company made false claims about fees and cost savings to lure merchants. Once merchants were enrolled, the defendants withdrew funds from their accounts without their consent and made it difficult and expensive for them to cancel the service. The defendants settled the lawsuit with the FTC by paying money to refund small businesses. They also agreed to stop misleading businesses about their fees and make it easier for businesses to cancel their services.

The FTC is sending checks to 5,588 small businesses. The agency is also mailing claim forms to 16,181 businesses who enrolled with First American Payment Systems between June 2017 and April 2020 and later canceled their enrollment. Businesses who were charged an early termination fee may apply for a refund. The deadline to submit a claim is May 7, 2025.

The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced it has assessed a $37,000,000 civil money penalty against Brink’s Global Services USA, Inc. (Brink’s) for willful violations of the Bank Secrecy Act (BSA) and its implementing regulations. As a result of Brink’s failures, hundreds of millions of dollars in bulk currency shipments were transmitted across the Southwest Border on behalf of high-risk entities—including a Mexican currency exchanger that later pleaded guilty to violating the BSA. This is FinCEN’s first enforcement action against an armored car company.

The U.S. Attorney's Office for the Southern District of California, in a coordinated announcement, reported that Brink's Global Services USA agreed to forfeit over $50 million under a Non-Prosecution Agreement to settle criminal allegations that it operated as an unlicensed money transmitting business.

After current and potential future credits toward the forfeiture. and FinCEN partial credit of some of the Department of Justice forfeiture toward its civil money penalty, the net cost to the company appears to be $42 million.

For additional information and links to the FinCEN order and the Justice Department agreement, see "Brink's Global Services USA pays $42M for BSA violations" in our Penalty pages.

Yesterday, the Treasury Department reported that OFAC has sanctioned an international network for facilitating the shipment of millions of barrels of Iranian crude oil worth hundreds of millions of dollars to the People’s Republic of China (PRC). The oil was shipped on behalf of Iran’s Armed Forces General Staff (AFGS) and its sanctioned front company, Sepehr Energy Jahan Nama Pars (Sepehr Energy). This action includes entities and individuals in multiple jurisdictions, including the PRC, India, and the United Arab Emirates (UAE), as well as several vessels.

For a link to the names and identification information of the designated parties and vessels, see yesterday's BankersOnline OFAC Update.

The U.S. Department of State this morning published [90 FR 9101] a List of Restricted Entities and Subentities Associated With Cuba (Cuba Restricted List) with which direct financial transactions are generally prohibited under the Cuban Assets Control Regulations (CACR).

The Cuba Restricted List was initiated in 2017. It was rescinded January 16, 2025. On January 20, 2025, President Trump issued an Executive Order reinstating the list.

This morning, the FDIC released 175 documents related to its supervision of banks that engaged in, or sought to engage in, crypto-related activities.

Acting Chairman Travis Hill issued the following statement in connection with the release:

“I have been critical in the past of the FDIC’s approach to crypto assets and blockchain. As I said last March, the FDIC’s approach ‘has contributed to a general perception that the agency was closed for business if institutions are interested in anything related to blockchain or distributed ledger technology.’

“Upon becoming Acting Chairman, I directed staff to conduct a comprehensive review of all supervisory communications with banks that sought to offer crypto-related products or services. While this review remains underway, we are releasing a large batch of documents today, in advance of a court-ordered deadline of Friday. Our decision to release these documents reflects a commitment to enhance transparency, beyond what is required by the Freedom of Information Act (FOIA), while also attempting to fulfill the spirit of the FOIA request."

Hill said the FDIC is actively reevaluating its supervisory approach to crypto-related assets, including replacing Financial Institution Letter (FIL) 16-2022 and providing a pathway for institutions to engage in crypto- and blockchain-related activities while still adhering to safety and soundness principles.

The crypto-related activities documents are the first three items on the current list of records listed on the FDIC's FOIA Reading Room webpage.

The Federal Reserve Board has announced the termination of two enforcement actions with Wells Fargo. Both were issued in 2011, with the first relating to deficient practices in residential mortgage loan servicing and foreclosure processing and the second relating to deficient mortgage lending practices at a former subsidiary.

The Board's 2018 enforcement action, which addressed widespread compliance issues by restricting Wells Fargo's growth, remains effective.

Our research in the Federal Reserve Board's CRA evaluations archives reveals that the Reserve Banks released 23 CRA evaluation ratings of state-chartered member banks in January.

• Seventeen of those banks received evaluation ratings of Satisfactory.
• We congratulate six banks that received evaluation ratings of Outstanding:
  • 1st Source Bank, South Bend, Indiana
  • Dime Community Bank, Bridgehampton, New York
  • First Financial Bank, Abilene, Texas
  • The Killbuck Savings Bank, Killbuck, Ohio
  • Midwest BankCentre, Saint Louis, Missouri
  • Whitaker Bank, Inc., Lexington, Kentucky

The FDIC has released a list of 60 state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in November 2024.

• Fifty-seven of the banks received evaluation ratings of Satisfactory.
• We congratulate three banks that received ratings of Outstanding:
  • Belmont Savings Bank, Bellaire, Ohio
  • Community Valley Bank, El Centro, California
  • Spring Bank, Bronx, New York

The Office of the Comptroller of the Currency yesterday issued a list of Community Reinvestment Act performance evaluations that became public in January.

• Fifteen of the OCC-supervised institutions received Satisfactory ratings on their evaluations.
• Two institutions — United Trust Bank, Palos Heights, Illinois, and First Federal Savings and Loan Association of Lorain, Lorain, Ohio — received Needs to Improve ratings.
• We congratulate three institutions that received Outstanding ratings:
  • Nicolet National Bank, Green Bay, Wisconsin
  • Patrons Bank, National Association, Okmulgee, Oklahoma
  • Stearns Bank National Association, St. Cloud, Minnesota

The CFPB yesterday announced that, on Friday, President Trump designated Secretary of the Treasury Scott Bessent as Acting Director of the Consumer Financial Protection Bureau. Bloomberg Law reported, citing a memo to CFPB staff obtained by Bloomberg, that Bessent has ordered the CFPB to stop all rulemaking, communications, litigation, and other activities.