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On June 3, 2022, the Financial Crimes Enforcement Network (FinCen) issued an Advance Notice of Proposed Rulemaking  proposing public comment on the enactment of a no-action letter process.  This Advanced Notice follows FinCen’s Report to Congress submitted in June 2021 that was based on FinCen’s consultation with the Attorney General, State bank supervisors, State credit union supervisors, and other Federal agencies and regulators.  In its report, FinCen evaluated the difficulties it faces because of the overlap between its enforcement authority and other regulators.  FinCen also examined the benefits and concerns on how a no-action letter process could affect illicit finance risks.  FinCen stated that the primary benefits of a no-action letter process “are that it could promote a robust and productive dialogue with the public, spur innovation among financial institutions, and enhance the culture of compliance and transparency in the application and enforcement of BSA.”  Ultimately, FinCen concluded that it should establish a rulemaking to create a no-action letter process.

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On March 31, 2022, the Federal Deposit Insurance Corporation (FDIC) issued the March 2022 edition of its Consumer Compliance Supervisory Highlights. The publication provides a high-level overview of consumer compliance issues identified in 2021 through the FDIC’s supervision of state-chartered banks and thrifts that are not members of the Federal Reserve System.  It provides important guidance regarding compliance priorities for these financial institutions.

Continue Reading FDIC Consumer Compliance Supervisory Highlights for State and Community Banks

On April 29, the New York Department of Financial Services (NY DFS)—the state’s principal banking and insurance regulator—announced that it is creating a new Consumer Protection and Financial Enforcement (CPFE) division. The new division, described by commentators as a state-level version of the Consumer Financial Protection Bureau (CFPB), or “mini CFPB,” will have responsibility