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OFAC has announced upcoming updates for users of its Compliance Hotline service. OFAC is transitioning to a single, user-friendly online platform to receive questions from the public. Users can now submit queries—and provide all necessary details—directly through OFAC’s new OFAC Compliance Hotline page. This new platform is designed to improve OFAC’s tracking of queries and help OFAC assess when additional public guidance may be helpful.

OFAC will fully transition its Compliance Hotline to this web form platform by January 1, 2025, and will retire other existing forms of contacting the OFAC Compliance Hotline according to the following schedule: OFAC will retire the Compliance Hotline email (OFAC_Feedback@treasury.gov) on August 16, 2024; and its Compliance Hotline telephone (1-800-540-6322 and 202-622-2490) on December 31, 2024.

The Federal Reserve Board on Friday announced it is requesting comment on a proposed rule that would establish data standards for certain information collections submitted to financial regulatory agencies. In addition to the Board, the standards have been proposed by several other federal financial regulatory agencies. The proposal would promote interoperability of data collected by financial regulatory agencies through the establishment of data standards for identifiers of legal entities and other data elements.

This proposal is part of the implementation of the Financial Data Transparency Act of 2022. Once the final standards are established, the Board will issue a separate rule that adopts those standards for certain information collected by the Board.

Comments on the proposal are due 60 days following joint publication by the Board, the OCC, FDIC, NCUA, CFPB, FHFA, Commodity Futures Trading Commission, SEC, and the Department of the Treasury in the Federal Register.

Publication and comment period update: Published by the agencies in the August 22, 2024, Federal Register with a 60-day comment period ending on October 21, 2024.

The NCUA yesterday reported it issue2 two prohibition orders in July barring individuals from participating in the affairs of any federally insured depository institution. The orders were issued to:

• Jose Prado-Valero, a former employee of Financial Center First Credit Union in Indianapolis, Indiana, after finding that he engaged in an elaborate fraud to share credit union members’ personal information with non-members who fraudulently withdrew members’ funds, in exchange for a portion of the proceeds of the fraud. Valero pleaded guilty to a one-count information in federal court in April 2024.
• Tracy H. Thibodeau, a former employee of Vermont VA Federal Credit Union in White River Junction, Vermont, after finding that, as a branch manager of the credit union, she fraudulently obtained a personal Vermont VA FCU credit card and exempted herself from credit limits, late fees, interest payments, and making minimum monthly payments, defrauding the credit union of $137,170. She subsequently pleaded guilty to a charge of bank fraud in federal court.

The Department of the Treasury yesterday reported that OFAC has sanctioned two individuals and four companies that have facilitated weapons procurement for Ansarallah, commonly referred to as the Houthis. This action targets key actors located in the People’s Republic of China, including Hong Kong, and Yemen who have directly supported Houthis’ efforts to procure military-grade materials abroad and ship these items to Houthi-controlled areas of Yemen, enabling the group’s ongoing attacks.

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

FDIC FIL-50-2024, issued yesterday, lists steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Missouri affected by severe storms, straight-line winds, and flooding from May 19 to May 27, 2024.

FIL-51-2024, also issued yesterday, lists steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Kentucky affected by severe storms, straight-line winds, tornadoes, landslides, and mudslides from May 21 to May 27, 2024.

The FDIC Board of Directors meeting yesterday resulted in approval of:

• A Notice of Proposed Rulemaking that would amend the FDIC's regulations in 12 CFR parts 303 and 337 relating to the brokered deposits restrictions that apply to less than well-capitalized insured depository institutions. Comments will be accepted for 60 days following Federal Reserve publication. UPDATE: This proposed rule was published at 89 FR 68244 with a comment period ending on 10/22/2024.
• A Notice of Proposed Rulemaking that would amend its regulations in 12 CFR Part 354 governing parent companies of industrial banks and industrial loan companies. There will be a 60-day comment period.
• A Request for Information on deposit data that is not currently reported in Call Reports. The request has a 60-day comment period.
• Final Guidance for Title I Resolution Plan Triennial Full Filers [Domestic] [Foreign], to be effective upon publication
• A proposed rulemaking regarding the Change in Bank Control Act Regulations and Procedures, with a 60-day comment period
• A final rule revising the FDIC's Section 19 regulations in 12 CFR Parts 303 and 308, to become effective on October 1, 2024.

The second 2024 issue of Consumer Compliance Outlook has been released by the Federal Reserve, with a focus on consumer complaints. The issue includes these articles:

• The Benefits of a Formal Complaint Management Program
• Consumer Complaints 2023: A Review of Federal Reserve Data
• Enhancing the Compliance Management Program with Complaint Data

The Department of the Treasury yesterday reported that OFAC has targeted five individuals and seven entities based in Iran, the People’s Republic of China, and Hong Kong that have facilitated procurements on behalf of subordinates of Iran’s Ministry of Defense and Armed Forces Logistics. Those designated today procure various components, including accelerometers and gyroscopes, which serve as key inputs to Iran’s ballistic missile and unmanned aerial vehicle (UAV) program. Iran’s acquisition of critical missile and UAV components continues to enable its proliferation of weapons systems to its proxies in the Middle East and to Russia.

For the names and identification information of the designated individuals and entities, see this July 30, 2024, BankersOnline OFAC Update.

The FDIC has released a list of enforcement orders and notices it issued in June 2024. Among those orders are four prohibition orders; one combined prohibition order and order to pay a civil money penalty (CMP); and one CMP order. The first Notice seeks a prohibition order; the second Notice seeks a prohibition order and assessment of a CMP.

• A Notice of Charges and Hearing seeking a civil money penalty and prohibition order against Elias Israel Robiero Rangel, now or formerly affiliated with Truist Bank, Charlotte, NC
• A Notice of Charges and Hearing for a prohibition order against Martin Fernandez Jr., now or formerly affiliated with International Bank of Commerce, Laredo, TX
• An order for assessment of a $15,000 CMP and prohibition against Toni Miller, formerly affiliated with South State Bank, Columbia, SC
• An order assessing a CMP of $7,000 against Mohammed A. Kasem, now or formerly affiliated with Truist Bank, Charlotte, NC
• An order of prohibition against Joshua E. Breedwell, formerly affiliates with Discover Bank, Greenwood, DE
• An order of prohibition against Brady D. Torgerson, formerly affiliated with The Union Bank, Beulah, ND, and First Security Bank, West Beulah, ND
• An order of prohibition against Mitchell A. Fowler, formerly affiliated with Sunmark Community Bank, Perry, GA

On Friday, FinCEN issued a notice to customers of financial institutions about reporting beneficial ownership information.

The Corporate Transparency Act requires certain entities, including many small businesses, to report to FinCEN information about the individuals who ultimately own or control them. A separate regulatory requirement currently requires many financial institutions to also collect beneficial ownership information from certain customers that seek to open accounts as part of Federal customer due diligence requirements. Today’s notice provides answers to key questions about: (1) reporting beneficial ownership information to FinCEN under the Corporate Transparency Act (https://www.fincen.gov/boi); and (2) providing beneficial ownership information to financial institutions in connection with Federal customer due diligence requirements.

FinCEN encourages financial institutions to share this reference guide with customers that may be required to report beneficial ownership information.

The notice reflects the current legal and regulatory situation. FinCEN has plans to revise the customer due diligence regulations by 2025, as required by the Corporate Transparency Act.

• Notice to Customers: Beneficial Ownership Information Reference Guide