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The FDIC yesterday issued FIL-70-2024 with guidance to help financial institutions and facilitate recovery in areas affected by Hurricane Helene in Florida, Georgia, North Carolina, and South Carolina, on September 23, 2024, and continuing.

The OCC has released its bank supervision operating plan for fiscal year (FY) 2025. The plan outlines the OCC’s supervision priorities and objectives for the year. It also facilitates the implementation of supervisory strategies for individual national banks, federal savings associations, federal branches and agencies of foreign banking organizations, and third-party service providers subject to OCC examination. OCC staff uses this plan to guide its supervisory priorities, planning, and resource allocations.

Heightened focus areas include:

• Financial
  • Credit
  • Allowance for credit losses
  • Asset and liability management
  • Capital
  • Climate-related financial risks for banks with over $100 billion in total consolidated assets
• Operational
  • Cybersecurity
  • Enterprise change management
  • Operations
  • Third-party risks
  • Payments
• Compliance
  • Bank Secrecy Act/anti-money laundering/countering the financing of terrorism and Office of Foreign Assets Control
  • Consumer compliance
  • Community Reinvestment Act
  • Fair lending

The Treasury Department yesterday announced that OFAC was designating Hilltop Youth, a violent extremist group that has repeatedly attacked Palestinians and destroyed Palestinian homes and property in the West Bank.

The Treasury Department alsoreported that OFAC was designating seven individuals and two entities associated with the Russia-based cybercriminal group Evil Corp, in a tri-lateral action with the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO) and Australia’s Department of Foreign Affairs and Trade (DFAT). Additionally, the U.S. Department of Justice has unsealed an indictment charging one Evil Corp member in connection with his use of BitPaymer ransomware targeting victims in the United States.

For identification information on the sanctioned individuals and entities, see BankersOnline’s October 1, 2024, OFAC Update.

On Friday, the Treasury Department announced OFAC actions to defend and protect U.S. campaign and government officials from Iranian attempts to interfere in U.S. elections. OFAC designated seven individuals as part of a coordinated U.S. government response to Iran’s operations that sought to influence or interfere in the 2024 and 2020 presidential elections.

For the names and identification information of the designated individuals, see Friday's BankersOnline OFAC Update.

The FDIC has issued guidance to help banks and facilitate recovery in areas of Georgia (FIL-68-2024) and Vermont (FIL-69-2024) affected by severe weather.

The FDIC his released a list of enforcement orders issued in August 2024.

• Comenity Bank, Wilmington, Delaware, and Comenity Capital Bank, Draper, Utah, each received an order to pay and agreed to pay a civil money penalty of $1 million after a finding, which the banks neither admit nor deny, that they engaged in unfair acts and practices in or affecting commerce in violation of Section 5 of the Federal Trade Commission Act related to reward programs and the processing of automatic payments matters resulting from the conversion from an internal core system platform to an external core system platform.
• Removal and prohibition orders were issued to:
  • Sammy Sims, former CFO of Eastern International Bank, Los Angeles, California (use of bank funds to purchase life insurance for bank employees without their knowledge, for which his wife received compensations as insurance broker)
  • Debra L. Poulsen, former officer and director of Ericson State Bank, Ericson, Nebraska (failure to report to directors misconduct of which she was aware, including repeated violations of Nebraska's legal lending limit, unsafe and unsound overdrafts, etc.)
  • Jackie L. Poulsen, former president and director of Ericson State Bank, Ericson, Nebraska (underwriting loans without appropriate documentation or risk mitigation, making loans "vastly exceeding" Nebraska's lending limit, failing to obtain real estate appraisals, etc.)
  • Patricia Jean Niemeyer, former cashier and director of Ericson State Bank, Ericson, Nebraska (aiding and abetting the actions of Jackie Poulsen).
  • Robert S. Catanzaro, former CEO and director of Independence Bank, East Greenwich, Rhode Island, for failing to implement and supervise appropriate oversight and management practices over the bank's SBA Small Loan Advantage lending program, causing the bank to suffer over $1.7 million in losses.

The OCC has expanded the reach of its earlier announcement allowing banks in the path of Hurricane Helene to close. Yesterday, the OCC issued a proclamation allowing national banks, federal savings associations, and federal branches and agencies of foreign banks to close offices in areas of North Carolina, South Carolina and Virginia affected by Hurricane Helene, if they are affected by potentially unsafe conditions as a result of the storm.

The Treasury Department has reported actions taken by OFAC in a coordinated international effort to disrupt Russian cybercrime services. FinCEN has issued a notice on Imposition of Special Measure Prohibiting the Transmittal of Funds Involving PM2BTC that identifies a Russian virtual currency exchanger associated with Russian individual Sergey Sergeevich Ivanov—as being of “primary money laundering concern” in connection with Russian illicit finance. Concurrently, the Office of Foreign Assets Control (OFAC) is sanctioning Ivanov and Cryptex—a virtual currency exchange registered in St. Vincent and the Grenadines and operating in Russia. The FinCEN and OFAC actions are being issued in conjunction with actions by other U.S. government agencies and international law enforcement partners to hold accountable Ivanov and the associated virtual currency services. FinCEN's notice will be effective when published in the Federal Register

According to Treasury, the U.S. Secret Service’s Cyber Investigative Section, the Netherlands Police, and the Dutch Fiscal Intelligence and Investigation Service (FIOD) have seized web domains and/or infrastructure associated with PM2BTC, UAPS, and Cryptex. The U.S. Department of State has issued a reward offer up to $10 million through its Transnational Organized Crime Rewards Program for information leading to the arrest and/or conviction of Ivanov. Lastly, the U.S. Secret Service and the U.S. Attorney’s Office for the Eastern District of Virginia are unsealing an indictment of Ivanov and another Russian national, Timur Shakhmametov. These actions by U.S. and Dutch agencies were taken in partnership with Operation Endgame, a multinational coordinated cyber operation with European partners, to dismantle financial enablers of transnational organized cybercrime.

For identification information on Ivanov and Cryptex, see BankersOnline’s September 26, 2024, OFAC Update.

FinCEN has announced it has published a notice in the Federal Register today at 89 FR 79184 withdrawing its finding that ABLV Bank, AS is a financial institution of primary money laundering concern, as well as the related notice of proposed rulemaking seeking to impose special measure five pursuant to section 311 of the USA PATRIOT Act.

On February 16, 2018, FinCEN issued an NPRM that set forth FinCEN’s findings of money laundering concern regarding ABLV, a commercial bank located in Riga, Latvia, and proposed imposing special measure five under section 311, prohibiting covered financial institutions from opening or maintaining in the United States correspondent accounts for, or on behalf of, ABLV.

According to FinCEN, material subsequent developments since the issuance of the NPRM have mitigated the money laundering risks associated with ABLV. Shortly after the issuance of the NPRM, the European Central Bank (ECB) determined that ABLV—as well as its subsidiary, ABLV Bank Luxembourg—was failing or likely to fail. The ECB subsequently withdrew ABLV’s banking license, and the Luxembourg subsidiary was ordered dissolved. Thus, ABLV no longer operates as a depository institution. The bank is in the advanced stage of an irrevocable liquidation process supervised by the Government of Latvia, which ensures anti-money laundering/countering terrorist financing compliance. Furthermore, Latvian authorities have undertaken significant efforts to identify and address past illicit activity facilitated by the bank, resulting in criminal charges against owners of the bank and its senior managers. As a result, FinCEN has determined that ABLV is no longer a financial institution of primary money laundering concern.

The United States Mint has published [89 FR 78241] a final rule in the Federal Register removing the Treasury Department's regulations relating to the exchange of bent, partial, fused, and mixed coins, thus ending the Mint's exchange program for bent and partial coin, effective October 25, 2024.

In August 2018, the United States Mint suspended the redemption program due to the possibility of unlawful material being submitted for redemption. On May 5, 2021, the United States Mint issued a notice of proposed rulemaking proposing certain revisions to these regulations (86 FR 23877), which was withdrawn on May 3, 2024 (89 FR 36721). The United States Mint subsequently decided to close the bent and partial coin exchange program.