Transmittal Archive

The Board, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the state regulators recognize the serious impact of Hurricane Laura and the California wildfires on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. More... The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities. For more information, see the press release and related information on the Board’s website: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200901b.htm.

The Board issued on August 11, 2020, Attachment B to Frequently Asked Questions on the Tailoring Rules to respond to questions from institutions regarding the Board’s final rule to tailor certain prudential standards for large domestic and foreign banking organizations. More... The Board may publish additional frequently asked questions (FAQs) and/or update existing FAQs periodically (Guidance, Capital at 3-1506.34).

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule to repeal regulations concerning special measures against Banco Delta Asia, which were issued pursuant to section 311 of the USA PATRIOT Act. Subsequent to the issuance of this rule, FinCEN will reassess whether Banco Delta Asia is presently a financial institution of primary money laundering concern and additional rulemaking is warranted. More... The final rule is effective August 10, 2020 (Department of the Treasury, Financial Crimes Enforcement Network at 3-1700), the same day it was published in the Federal Register.

The Board, the FDIC, FinCEN, the NCUA, and the OCC issued a joint statement on August 21, 2020, to address due diligence questions raised by banks related to Bank Secrecy Act/anti-money laundering regulatory requirements for customers whom banks may consider to be politically exposed persons (PEPs). More... The statement is intended to clarify that, consistent with a risk-based approach, the level and type of customer due diligence should be commensurate with the risks presented by the PEP relationship (Bank Secrecy Act Regulations, Joint Statement on Bank Secrecy Act Due Diligence Requirements for Customers Who May Be Considered Politically Exposed Persons at 3-1851).

The general counsels of the Board, the FDIC, the NCUA, and the OCC released a joint statement on August 13, 2020, that updates and supersedes the Interagency Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements issued on July 19, 2007, to further promote a consistent approach to the application of section 8(s) of the Federal Deposit Insurance Act and section 206(q) of the Federal Credit Union Act. More... The statement expressly does not create new supervisory expectations or standards. Rather, it is intended to further clarify the agencies’ enforcement of the Bank Secrecy Act and the conditions that require the issuance of a mandatory cease and desist order under sections 8(s) and 206(q) (Bank Secrecy Act Regulations, Joint Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements at 3-1873.21).

The Board, the Commodity Futures Trading Commission (CFTC), the FDIC, the OCC, and the Securities and Exchange Commission (SEC) are adopting amendments to the regulations implementing section 13 of the Bank Holding Company Act (BHC Act). Section 13 contains certain restrictions on the ability of a banking entity or nonbank financial company supervised by the Board to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund (covered funds). More... These final amendments are intended to improve and streamline the regulations implementing section 13 of the BHC Act by modifying and clarifying requirements related to the covered fund provisions of the rules. The final rule is effective October 1, 2020 (Regulation VV, Docket R-1694) and was published in the Federal Register on July 31, 2020.

The Board adopted a final rule to revise the Board’s regulations related to determinations of whether a company has the ability to exercise a controlling influence over another company for purposes of the Bank Holding Company Act or the Home Owners’ Loan Act. The final rule expands the number of presumptions for use in such determinations. More... The effective date of the final rule was delayed from April 1, 2020, until September 30, 2020. By codifying the presumptions in the Board’s Regulation Y and Regulation LL, the Board’s rules will provide substantial additional transparency on the types of relationships that the Board generally views as supporting a determination that one company controls another company. The final rule is effective September 30, 2020 (Regulation Y and Regulation LL, Docket R-1662) and was published in the Federal Register on March 2, 2020.

The Board has revised part II of the Federal Reserve Policy on Payment System Risk related to the procedures for determining the net debit cap and maximum daylight overdraft capacity of a U.S. branch or agency of a foreign banking organization (FBO). More... The changes remove references to the Strength of Support Assessment (SOSA) ranking; remove references to FBOs’ financial holding company status; and adopt alternative methods for determining an FBO’s eligibility for a positive net debit cap, the size of its net debit cap, and its eligibility to request a streamlined procedure to obtain maximum daylight overdraft capacity. Implementation of the changes was delayed and the transition period extended from April 1, 2020 to October 1, 2020, to allow FBOs and the Federal Reserve Banks to focus on responding to disruptions in economic activity and U.S. financial markets caused by the coronavirus outbreak rather than establishing new arrangements for accessing intraday credit. The policy statement revisions are effective October 1, 2020 (Federal Reserve Policy Statement on Payment System Risk at 9-1000, Docket OP-1589) and were published in the Federal Register on April 1, 2019.

On July 6, 2020, the Board, the Farm Credit Administration, the FDIC, the NCUA, and the OCC published in the Federal Register a notice soliciting comments on a proposal to reorganize, revise, and expand the Interagency Questions and Answers Regarding Flood Insurance. More... The July 2020 proposed questions and answers provided for a comment period ending on September 4, 2020. The agencies have determined that an extension of the comment period is appropriate. This action will allow interested parties additional time to analyze the proposal and prepare and submit comments. Comments on this notice of proposed rulemaking must be received by November 3, 2020 (Docket OP-1720).