Treasury

The Federal Reserve is primarily attributing a year-over-year dip in total net income recorded collectively by the nation’s Reserve Banks to a drop in certain interest income tied to securities combined with an uptick in certain security-related interest expenses on securities.

The Reserve Banks have seen a drop in net income in each of the last four years.

Read on for information.

Numerous federal financial agencies likely will be operational to begin 2020 thanks to the adoption of a $13.06 billion appropriations package outlined in the House’s FY 2020 spending bill.

The spending package provides more federal funding than the FY 2019 enacted level and more than the Trump administration’s budget request.

Find out more details about the spending package.

The Government Accountability Office (GAO) recently published a report highlighting numerous instances in which financial institutions curtailed banking services to legitimate businesses as they attempted to alleviate compliance risks associated with money transfers.

Many of the “de-risking” efforts were initiated to comply with Bank Secrecy Act/anti-money laundering (BSA/AML) requirements.

Find out more details about the report.

The Federal Housing Finance Agency (FHFA) took another step toward its goal of ending the conservatorship of Fannie Mae and Freddie Mac with Mark Calabria’s announcement that such a goal was built into the agency’s newly finalized 2020 Scorecard and Strategic Plan for the government-sponsored enterprises (GSEs) at the Mortgage Bankers Association’s 2019 Annual Convention.

Stressing how critical raising capital is to releasing the GSEs from conservatorship and that FHFA is not forecasting a downturn, he explained that time is of the essence to get that done before the economy becomes less favorable. 

Learn more details revealed by the director during the event.

Community banks and credit unions are applauding the House’s passage of a bill updating “beneficial ownership” disclosure requirements under federal laws pertaining to Bank Secrecy Act/anti-money laundering rules. 

Trade associations representing community banks and credit unions wrote to House leaders ahead of the vote to reiterate their support for the legislation.

Find out more about the legislation and the industry’s take on its potential impact.

The fact that financial institutions increasingly are engaging in transactions involving digital assets has spurred federal agencies to speak up regarding additional compliance obligations that come with the territory.

The agencies detailed those obligations and the circumstances that trigger their applicability in a recent joint statement.

Find out more details about the new guidance on digital assets.

The financial industry, which has been clamoring for a modernized approach to Bank Secrecy Act/anti-money laundering (BSA/AML) compliance policies, has expressed support for a bipartisan bill recently introduced in the Senate.

The Illicit Cash Act (S. 2563), introduced by Sens. Mark Warner (D-Va.) and Tom Cotton (R-Ark.), would create a beneficial ownership registry within the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to help eliminate illegal activities perpetrated by anonymous shell corporations.

Find out more details about the legislation.

One thing has become abundantly clear with regard to the prospect of reforming the county’s housing finance policy – Congress needs to act. However, that does not mean that regulators can only sit on their hands in the meantime.

Regulatory leaders tactfully noted during a recent Senate Banking Committee hearing that although there are actions they can take in the interim, their ability to act ultimately is limited by the willingness of Congress to reach a comprehensive bipartisan solution.

Get an in-depth look at how federal regulators plan to get the ball rolling.

At a time when the president is being criticized over Twitter comments he made about a group of freshman House representatives, two administration officials have been in the news for their roles in fair lending violations. 

A complaint filed by the California Reinvestment Coalition (CRC) alleged that, from 2014 to at least 2017, OneWest Bank/CIT Bank discriminated against minority borrowers. Treasury Department Secretary Steven Mnuchin and Comptroller of the Currency Joseph Otting are former top executives of OneWest Bank.

Learn more details about the matter.

Federal regulators recently outlined a new risk-based approach to assess banks for Bank Secrecy Act/anti-money laundering (BSA/AML) rule compliance as part of an ongoing effort to increase transparency regarding their supervisory process.

Through its risk-focused approach, the federal agencies and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) said they intend to better tailor examination plans and procedures based on the unique risk profiles of individual banks in a joint statement.

Find out more about the new risk-based approach.