Weekly RoundUp
April 25, 2024

FinCEN Proposed the Renewal of its Existing Information Collection Requirements Previously Promulgated Under the BSA

In this Issue. The Financial Crimes Enforcement Network (FinCEN) proposed the renewal of its existing information collection requirements previously promulgated under the Bank Secrecy Act (BSA); the Office of the Comptroller of the Currency (OCC) published its Spring Interest Rate Risk Statistics Report; FinCEN issued an analysis on elder financial exploitation; and the Consumer Financial Protection Bureau (CFPB) issued a Supervisory Highlights identifying instances of illegal junk fees in mortgage servicing. These and other developments are discussed in more detail below.

Regulatory Developments

FinCEN Proposed the Renewal of its Existing Information Collection Requirements Previously Promulgated Under the BSA
On April 22, FinCEN proposed to renew its existing information collection requirements previously promulgated under the BSA, estimated the regulatory burden that this renewal would give rise to, and requested feedback. These requirements ensure that banks that lack a federal functional regulator, money services businesses, mutual funds, insurance companies, dealers in precious metals, stones, or jewels, operators of credit card systems, and loan or finance companies, develop and implement written AML programs which meet the minimum standards laid out in the rules. Comments are due by June 21, 2024.

OCC Publishes Spring 2024 Edition of Interest Rate Risk Statistics Report
On April 18, the OCC published its Spring 2024 edition of its semiannual Interest Rate Risk Statistics Report, which presents interest rate risk data that the OCC collects during examinations of midsize and community banks and federal saving associations. Using these data, the OCC calculates risk exposures and limits for different interest rate scenarios. The report highlights statistics for different groupings of banks, including by: (1) asset size; (2) charter type; and (3) minority depository institution status. The OCC notes that the statistics are for informational purposes only and do not constitute recommendations or guidance by the agency.

FinCEN Issues Analysis on Elder Financial Exploitation
On April 18, FinCEN issued a Financial Trend Analysis about elder financial exploitation incidents. Elder scams, where the victim does not know the perpetrator, accounted for approximately 80% of the reported incidents. Victims were most frequently subjected to tech support scams and romance scams. Elder theft, where the victim knows the perpetrator, accounted for the approximately other 20% of the reported incidents. Adult children of older parents were the most frequently identified perpetrators in these scenarios. The scams and thefts amounted to approximately $27 billion in suspicious activity involving checking and savings accounts, retirement accounts, and investments.

“FinCEN’s analysis highlights the critical role of financial institutions in helping to identify, prevent, and report suspected Elder Financial Exploitation.”

— Andrea Gacki, Director, FinCEN

CFPB Issues Supervisory Highlights on Illegal Junk Fees in Mortgage Servicing
On April 24, the CFPB published its second Spring 2024 Supervisory Highlights, this time focusing on illegal junk fees in mortgage servicing identified through examinations completed between April 1, 2023 and December 31, 2023. The report identified mortgage servicers illegally charging and obscuring junk fees, failing to waive existing fees after accepting COVID-19 loan modifications, and causing borrowers to incur penalties due to failure by the servicer to timely pay property taxes and insurance. The report also identified other UDAAP and regulatory violations, including mortgage servicers sending deceptive delinquency and loss mitigation eligibility notices. In response to these findings, the CFPB noted that mortgage servicers are taking corrective actions that include enhancing their policies and procedures and refunding homeowners.

Check Out Goodwin's Latest Industry Insights

New Client Alert: Kansas Becomes Fourth State to Enact Law Regulating Earned Wage Access Services 
Kansas has become the fourth state (and the second in 2024) to enact a law that establishes a financial services oversight regime for earned wage access services, also known as on-demand pay services, which allow workers to access earned but unpaid income before payday. The governor approved the legislation (HB 2560) on April 19, 2024. Kansas’s law imposes registration and other substantive requirements on providers, and it provides important regulatory certainty for these innovative financial services in the state. Along with Missouri, Nevada, and Wisconsin’s laws, Kansas’s law may shape similar legislation in other states. To read more on this, click here.

New Client Alert: The SEC Amends the Internet Adviser Exemption
On March 27, the US Securities and Exchange Commission (SEC) adopted amendments to Rule 203A-2(e) of the Investment Advisers Act of 1940 (the Advisers Act) (the Internet Adviser Exemption). The amended Internet Adviser Exemption will (i) require all investment advice to be provided through the internet (eliminating the de minimis exception for providing advice to a limited number of clients by other means) and (ii) replace the term “interactive website” with a new defined term, “operational interactive website,” which, among other things, is intended to pick up digital platforms and other future technology in addition to traditional websites. To read more, click here.

Corporate Transparency Act (CTA) Resource Center
Go-to resource with on-demand webinars and compliance toolkit.

Consumer Finance Insights (CFI) Blog
The latest on consumer finance regulation, litigation, and enforcement. 

Fintech Flash
The latest news and developments for the rapidly evolving fintech industry – which often can change in a flash. 

Bank Failure Knowledge Center
Timely updates on important developments following the March 2023 US bank failures.


This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided on the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin or its lawyers. Prior results do not guarantee a similar outcome.