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Banker's Toolbox Releases Innovative New Business Intelligence Solution  —
Banker's Toolbox, Inc., the leader in Bank Secrecy Act anti-money laundering compliance solutions, has launched innovative business intelligence software called Relationship Manager. Relationship Manager is a revolutionary tool that can utilize an institution's investment in BSA/AML transaction monitoring to address the challenges of cross-sell and retention. It scans an institution's transactional data to detect patterns that indicate cross-sell or retention opportunities as they occur, giving financial institutions a competitive advantage. (Read more.)

Top Story Compliance Related


SEC to hold seminars for investment companies and advisers

The SEC has announced the opening of registration for its compliance outreach program seminars for investment companies and investment advisers. The seminars will be offered in Portland, New York City, Boston, and Chicago. They are intended to help Chief Compliance Officers and other senior personnel enhance compliance programs at investment companies and investment advisory firms.


Santander in Written Agreement

The Federal Reserve Board has announced the execution of a written agreement with Santander Holdings USA, Inc., of Boston, Massachusetts, a bank holding company, and Santander Consumer USA, Inc., of Dallas, Texas, a non-bank subsidiary engaged in automobile financing for dealers and consumers.


CFPB complaint against Intercept dismissed

The U.S. District Court for the District of North Dakota on March 17 granted the defendants' motion to dismiss without prejudice the complaint filed by the CFPB against Intercept Corporation et al. on June 6, 2016. The court found that the CFPB complaint did not contain sufficient factual allegations to back up its statements regarding Intercept's allegedly unlawful acts or missions; failed to sufficiently allege facts tending to show that industry standards were violated; failed to plead facts sufficient to support a legal conclusion that consumers were injured or likely to be injured; and failed to include allegations to support a finding that Intercept interfered with consumers' ability to understand the terms of their dealing with Intercept's clients or to support a finding that Intercept took unlawful advantage of consumers.


Bureau fines Experian for deceptive marketing

The CFPB has announced an enforcement action taken against Experian Holdings, Inc., Experian Information Solutions, Inc., and, Inc. d/b/a Experian Consumer Services (collectively, Experian) following a review of Experian's marketing practices. The Bureau stated that Experian deceptively marketed credit scores by misrepresenting that those it provided to consumers were the same scores lenders use to determine creditworthiness. The CFPB also said that Experian illegally placed advertisements for its products on webpages that consumers accessed through before the consumers obtained their free annual file disclosures. Experian was ordered to pay a $3 million civil money penalty to the CFPB's Civil Penalty Fund, truthfully represent the usefulness of credit scores it sells, and put in place an effective compliance management system. See "Experian pays $3M for deceptively marketing scores," in our Penalty pages, for additional information.

TransUnion and Equifax were penalized by the Bureau in January for similar deceptive credit score marketing and other infractions.


Agencies issue EGRPRA report to Congress

A joint press release has been issued by the member agencies of the FFIEC regarding their delivery to Congress of a joint report detailing their review of rules affecting financial institutions. The review was conducted as part of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), which requires the federal banking agencies, along with the FFIEC, to conduct a review of their rules at least every 10 years to identify outdated or unnecessary regulations.


CFPB to assess Remittance Rule

The Consumer Financial Protection Bureau has announced the release of a plan to assess the effectiveness of the Remittance Rule. The CFPB is requesting public comment, including information that would help the assessment. Comments on the plan will be due 60 days after it is published in the Federal Register.

Update: The Bureau's request for public comments is scheduled for publication on 3/24/17. Comments will be accepted through Tuesday, 5/23/17.


OCC enforcement actions

The Office of the Comptroller of the Currency has released a list of enforcement actions taken from late January through the end of February 2017 against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. Among those actions were:

  • the $1 million CMP (combined with a $7 million penalty ordered by FinCEN) announced earlier against Merchants Bank of California, N.A.
  • a cease and desist order and a $1 million CMP for UDAP violations of Section 5 of the Federal Trade Commission Act against First Tennessee Bank, N.A., in connection with billing and marketing, with a third party vendor, of an identity protection product
  • a $5,000 CMP and prohibition order issued to a former Tulsa, Oklahoma, banker for misconduct with regard to 15 municipal bond accounts for which the banker's employer served as trustee
  • a $5,000 CMP and cease and desist order issued to a former Ohio loan officer for providing false documents and making false or misleading statement in connection with a fraudulent loan, and for misrepresenting to a potential borrower that the Ohio bank had approved a $500,000 line of credit


OCC proposes licensing manual supplement

The Office of the Comptroller of the Currency has released a draft Licensing Manual supplement for evaluating charter applications form financial technology companies. A summary of comments and explanatory statement were also released. Comments will be accepted through April 14, 2017.


Bureau levies $1.75M HMDA penalty

The Consumer Financial Protection Bureau announced Wednesday that it has ordered Nationstar Mortgage LLC, of Coppell, Texas, to pay a $1.75 million civil penalty for violating the Home Mortgage Disclosure Act (HMDA) by consistently failing to report accurate data about mortgage transactions for 2012 through 2014, and to take the necessary steps to improve its compliance management and prevent future violations. According to 2014 data, Nationstar was the ninth-largest HMDA reporter by total mortgage originations, the sixth largest by applications received, and the 13th largest by money lent. From 2010 to 2014, Nationstar’s number of HMDA mortgage loans increased by nearly 900 percent.

The Bureau reported that, in its supervision process, it found that Nationstar’s HMDA compliance systems were flawed, and generated mortgage lending data with significant, preventable errors. Nationstar also failed to maintain detailed HMDA data collection and validation procedures, and failed to implement adequate compliance procedures. It also produced discrepancies by failing to consistently define data among its various lines of business. The Nationstar reporting samples reviewed by the CFPB showed substantial error rates in three consecutive reporting years, even after a settlement with the Massachusetts Division of Banks over faulty HMDA reporting was reached in 2011. In the samples reviewed, the CFPB found error rates of 13 percent in 2012, 33 percent in 2013, and 21 percent in 2014.

See "Nationstar Mortgage pays $1.75M HMDA penalty" in our Penalties section, for additional information.


Prepaid Accounts rule delay proposal published

The CFPB's previously announced proposal to delay for six months the effective date of its Prepaid Accounts rule was published in this morning's Federal Register. The 21-day comment period ends on April 5, 2017.


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UDAAP Reality Check

We will explore what makes a practice unfair or deceptive by digging into what regulators and the courts have had to say.

Stop That Payment!

Bankers must understand the differences between the use of their systems' stop payment functionality and the actual right to stop payment

Penalties View All

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