LATEST REGULATORY DEVELOPMENTS IMPACTING
THE FINANCIAL SERVICES INDUSTRY
On August 12, the US Drug Enforcement Administration (DEA) announced its rejection of two petitions seeking to reclassify marijuana as a less-regulated Schedule II substance under the federal Controlled Substances Act (CSA).
On August 1, the Consumer Financial Protection Bureau (CFPB) published a Notice in the Federal Register seeking comment on a proposal to expand the information it gathers for its consumer complaint database to include complaint disposition information from consumers.
On July 28, the Consumer Financial Protection Bureau (CFPB) released a detailed summary of regulations it is considering imposing on third-party debt collectors.
On July 11, the Basel Committee on Banking Supervision (Basel Committee) published a revised regulatory capital framework for securitizations (Revised Framework) that incorporates final standards for the alternative and more favorable regulatory capital treatment for “simple, transparent, and comparable” securitizations (STCs).
On July 19, the Financial Crimes Enforcement Network (FinCEN), a bureau within the US Department of the Treasury responsible for the Bank Secrecy Act, issued guidance in the form of frequently asked questions (FAQs) regarding its recently adopted customer due diligence requirements (CDD Rule).
On July 6, North Carolina Governor Pat McCrory signed into law legislation to bring certain virtual currency businesses expressly within the existing money transfer business regulatory scheme by repealing and replacing the current law with a new article.
Senators Elizabeth Warren (D-MA) and Mark Warner (D-VA), along with Representative Elijah Cummings (D-MD), introduced new legislation that would amend the Commodity Exchange Act (CEA) to require the Commodity Futures Trading Commission (CFTC) to impose fees, increase civil penalties, mandate that FX swaps and FX forwards be treated as swaps (reversing the Treasury Determination), and tighten swap data reporting and capital requirements, among other new obligations.
Presumably to no one’s surprise, the Federal Reserve Board (Board) has just formally extended until July 21, 2017 the Dodd-Frank Act (Act) Section 619 (Volcker Rule) conformance period for banking organizations to divest ownership in certain “legacy” investment funds and terminate relationships with such funds that are prohibited under the Volcker Rule.
Starting August 1, violations of financial regulations will come with higher civil money penalties (CMPs).
The Financial Crimes Enforcement Network (FinCEN), the bureau of the US Department of the Treasury responsible for oversight and enforcement of the Bank Secrecy Act (BSA), has issued an interim final rule (Rule) that significantly increases the statutory penalties for various violations of the BSA and its applicable regulations.