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The Consumer Financial Protection Bureau expanded the scope of the 1033 rule to include payment apps, and CFPB Director Rohit Chopra signaled some relief from liability for banks. For daily news and analysis subscribe to the https://lnkd.in/grcK6QEX newsletter. #Payments #Finance #Fintech

The OCC is committed to being agile and credible on financial technology developments so that we can balance prudence with innovation and growth. Read Acting Comptroller Hsu’s thoughts on AI and tokenization. https://lnkd.in/eutqpjsR

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Dear FinCEN Director Gacki: It's June 4th. I went into your SAR Stats page and see that the SAR Stats are current through April 30th. I'm curious: why does it take your staff weeks - and in this case more than a month - to update SAR Stats? I'd expect that this should be an automated process, with SAR Stats updated on a daily basis. Or if you're going to update monthly, it should still be automated. So SARs filed through April would be available on May 1st. Not June 4th. While I'm blowing off steam, it would be great if you could somehow report on a few other things. First, report on ALL SARs filed, not just original SARs. Your SAR Stats under-report the total number of SARs filed by about 15% by not including corrected/amended SARs and so-called "continuing activity" SARs. A recent Treasury PRA notice showed that 4,367,197 SARs were filed in 2023: your SAR Stats show 3,809,823. That's a material difference! Second, what about CTRs? That same PRA notice showed that more than 20.5 million CTRs were filed in 2023, yet there's no reporting on those. Same for the CTR-equivalent for non-financial trades or businesses - Form 8300 - there's about 400,000 of those every year, but no reporting. And then there's CMIRs and FBARs: nothing there, either. You guys keep telling us how important and valuable "BSA Reports" are, but you don't provide any stats on most BSA reports, you don't tell us which BSA reports provide what kind of value, and we don't know which law enforcement or national security agencies are using which reports, or why. This may not be your problem to solve. Congress tried to light a fire under the Justice Department to provide some of this information through section 6101 of the AML Act of 2020, but Justice has blown that off and pretty much ignored their Congressional mandate to provide information. But since FinCEN is technically in charge of all things related to the Bank Secrecy Act, any help you could give would be appreciated! PS - you haven't updated your marijuana banking data since December 2023. With possible rescheduling of marijuana on the horizon, this data would be helpful, also. Have a great day! Sincerely, Jim

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The Fed, OCC, and FDIC recently released a supplementary resource - Third-Party Risk Management, A Guide for Community Banks - in hopes of aiding community #banks in achieving TPRM compliance. Learn the main components of this guide: https://hubs.ly/Q02GY34n0 #communitybanks #compliance #thirdpartyrisk

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If your institution's CECL model is not “fit for use” when evaluating the potential credit and capital exposures - do you know how you can best prepare❓❓❓ Join experts Mark Haberland & Chase Ogden of Darling Consulting Group as they share insights from recent model validations through real-life examples of how solid foundational documentation can enhance credit risk mitigation and improve your institution’s resilience in any economic climate. Register today for this 1-hour session: https://bit.ly/3XghbRZ #FMS #FMSWebinars #CPE #education #financeindustry #professionaldevelopment #risk #CECL #ModelValidations #CreditRiskMitigation

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A top Treasury Department official yesterday encouraged banks of all sizes to respond to a recent request for information on the use of artificial intelligence in financial services, saying the input the department receives will inform future policy and guidance. Read more at https://lnkd.in/gWnckf44

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In recent years, the adoption of #algorithmic decision-making tools by #FinancialInstitutions has surged, but there is growing evidence that they can also perpetuate and exacerbate existing and historical biases. #AI

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In this Compliance Clip, Adam discusses the importance of integrating FinCEN's national priorities into financial institutions' BSA/AML/CFT risk assessments, highlighting recent proposals from FinCEN and regulatory agencies aimed at updating compliance requirements. Adam provides ways on how financial institutions can proactively incorporate these priorities into their risk assessments. #compliance #BSA https://lnkd.in/grmANdE2

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🤔 Are you wondering how the actions of the US’s CFPB could impact the consumer transactional data space? Don’t miss your chance to join our free Data Dialogues session this Wednesday, where Neudata’s regulatory analyst Brittany Thomas will explain why the CFPB has been taking more action in the consumer data space and what it means for firms that use this type of data. The CFPB takes on data — What it means for your alternative data program Wednesday, October 16th 3pm UK / 10am NY Sign up here: 👉 https://lnkd.in/eygnniRc #alternativedata #consumerdata #markettrends

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Meet Amanda Dunn, a senior resource analyst in our Supervision, Credit Risk, and Statistics Department. At the Fed, Amanda supports her team through playing a key role in strategic planning, data acquisition, and communications. We asked her a few questions to get a peek into her experience working at the Fed, including some of her most rewarding moments and some of her hobbies outside of work: --- What do you find rewarding or enjoyable about your job? “One experience that stands out is being an employee resource group cochair. As a member and then a cochair of COOL, I’ve watched employees support one another through their life challenges and build their network of allies. It’s fulfilling to see these connections being made.” What do you do to unwind or relax after your workday? “Unwinding after work typically involves a dance party with my little one. Her music tastes are eclectic.” What has surprised you the most about the Bank? “I knew some basic facts about the Federal Reserve System—the stuff you’d find in a textbook, like core functions of monetary policy and the discount window. It wasn’t until I started working here that I understood the breadth of work and responsibilities the Fed has, including supporting the US Treasury, supervision, and community development.” How do you spend your time outside of the Bank? “When not on the clock, I enjoy spending time with my family. We visit the zoo and local parks frequently. I have my library card number memorized, so you can probably guess that I’m a bookworm, too. I’m also an amateur stargazer and was excited to witness (and capture on camera) my first fireball recently.” --- #MonetaryPolicy #Inflation #Disinflation #HousingMarket #SmallBusinesses #Education #AffordableHousing #Economy #Banking

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JUST RELEASED! HUD OIG Semiannual Report to Congress During this reporting period, HUD OIG audits found more than $14 million in funds that could be put to better use and more than $500,000 in questioned costs and recovered more than $8 million in collections. In addition, HUD OIG investigations resulted in 61 criminal convictions, 16 civil actions, and 79 governmentwide suspension and debarment actions, as well as more than $17.6 million in restitution and judgments, with more than $4.6 million in total recoveries and receivables going to HUD programs. Read more 👉https://lnkd.in/gf9XD977 Also, during this reporting period, HUD OIG partnered with the U.S. Attorney’s Office for the Southern District of New York to conduct the largest single-day bribery takedown in the history of the U.S. Department of Justice. 👉 https://lnkd.in/eVNja2m4

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The Federal Reserve Bank of Richmond and OFN have released a comprehensive analysis of the Federal Reserve’s 2023 CDFI Survey results, shedding light on how CDFIs are tracking outputs and outcomes. This research is crucial for understanding and improving impact measurement and management (IMM) within the CDFI industry. Key Findings: • Demand for CDFI products remains strong. • CDFIs largely met demand, but for some, their ability has been limited. • The biggest challenges to fully meeting demand varied across CDFIs. • CDFIs have continued to innovate to address these and other challenges. Capturing outcome measures to demonstrate the impact of these innovations remains elusive for many CDFIs. Read more: https://lnkd.in/ef8WVyJQ #CDFI #ImpactMeasurement #CommunityDevelopment #RichmondFed #OFN

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New blog post: CECL implementation is creating new norms for banks and credit unions. Learn which model inputs your financial institution should be evaluating to ensure you're maintaining a proactive approach to CECL. Read today: https://lnkd.in/eSHWeF-t Thanks to Zach Englert for sharing! Empyrean Solutions

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This month, The OCC, FDIC, and Federal Reserve Board released a guide to help community banks manage risks presented by third-party relationships. The guide mentions adverse media monitoring as a relevant source during due diligence and ongoing monitoring. Owlin's solution perfectly aligns with the guide's emphasis on (continuous) adverse media monitoring. By monitoring over 3 million sources in 17+ languages, Owlin enables businesses to make well-informed decisions and proactively manage third-party risk. With Owlin, users can customize personal filters to see the most relevant information tailored to their specific needs. Moreover, Owlin seamlessly integrates into existing workflow systems, offering flexibility and scalability, offering a comprehensive third-party management solution for community banks. 🔗 https://hubs.ly/Q02yzQT20 #CommunityBanks #RiskManagement #AdverseMediaMonitoring #Compliance #Owlin #FDIC #FederalReserve #ThirdPartyRisk #RealTimeInsights

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Is ACH risk a fraud problem or a credit risk problem? Our view: it’s both. 📊 Chart courtesy of Nacha https://lnkd.in/gx_2XNCZ While many tackle the fraud and identity problem, the credit risk tied to timing and settlement is often overlooked. At Pave, we’ve been working with lenders and payments providers to address ACH through the lens of cashflow analytics and credit risk. The credit risk problem is: will funds will be in the account when the ACH settles? For example: ▶ A lender attempts to pull an ACH payment from a borrower’s account, but by the time the transaction clears, the funds are no longer available. ▶ An investment app allows a user to deposit funds via ACH and start trading immediately. The ACH clears without sufficient funds in the account, and the app bears the loss. Using real-time bank data, Pave identifies transaction behaviors that indicate higher risk of ACH returns: 🕑 More accurate timing: By analyzing cashflow patterns, we help predict whether funds will be available when ACH transactions settle, bridging the timing gap inherent in ACH processing 💡 Proactive Risk Mitigation: We enable lenders and platforms to offer real time ACH settlements and reduce NSF events and mitigate financial losses. 📊 ACH Risk Score: With a growing dataset of ACH returns, we’re creating a predictive ACH Risk Score to help lenders and payment providers assess the likelihood of returns and manage timing risk more effectively. ACH risk goes beyond fraud—it's about timing, credit risk, and cashflow dynamics. Conversations with lenders and payments companies at Money2020 confirmed it: ACH risk needs a credit-driven approach. Facing high ACH returns or looking to offer real-time settlements? Let’s chat! #Money2020 #ACHRisk #PaymentOptimization #Fintech #Fraud

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💳❗️Just released: The NEW J.D. Power U.S. Financial Protection Satisfaction Study! Discover powerful insights on how fraud prevention, remediation and protection are shaping the future for banks, credit unions and consumers: https://hubs.la/Q02XPKjp0 #FinancialProtection #Fraud #FraudPrevention #Banking

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If your financial institution or credit union assigns scores by hand, runs calculations, or uses an algorithm, risk scoring is a crucial part of a well-oiled compliance system. ✅ Join former OCC regulator Ryan McInerny in our upcoming webinar on May 30th to discover how to align with your unique risk profile and ensure you're not missing suspicious activity. ✅ Register today! >> https://lnkd.in/dZ_7bHu2 #Riskscoring #RiskScout #Streamlinedcompliance #Financialinstitutions #Creditunions

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