Transmittal Archive

On November 6, 2020, the Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a statement that reiterates that they are not endorsing a specific replacement rate for the London interbank offered rate (LIBOR) for loans. More... A bank may use any reference rate for its loans that the bank determines to be appropriate for its funding model and customer needs. However, the bank should include fallback language in its lending contracts that provides for use of a robust fallback rate if the initial reference rate is discontinued. For more information, see the interagency statement on the Board’s website: https://www.federalreserve.gov/supervisionreg/srletters/SR2025.htm.

On November 2, 2020, the Board, the FDIC, and the OCC jointly issued an Interagency Paper on Sound Practices to Strengthen Operational Resilience to help large and complex domestic firms address unforeseen challenges to their operational resilience. More... The guidance is drawn from existing regulations, guidance, and statements as well as common industry standards that address operational risk management, business continuity management, third-party risk management, cybersecurity risk management, and recovery and resolution planning (Guidance, Safety and Soundness at 3-1579.293).

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule implementing sections 312, 326, and 352 of the USA PATRIOT Act and removing the anti-money laundering program exemption for banks that lack a federal functional regulator, including, but not limited to, private banks, non-federally insured credit unions, and certain trust companies. More... The final rule requires minimum standards for anti-money laundering programs for banks without a federal functional regulator to ensure that all banks, regardless of whether they are subject to federal regulation and oversight, are required to establish and implement anti-money laundering programs, and extends customer identification program requirements and beneficial ownership requirements to those banks not already subject to these requirements. The final rule is effective November 16, 2020 (Department of the Treasury, Financial Crimes Enforcement Network at 3-1700) and was published in the Federal Register on September 15, 2020. The compliance date for anti-money laundering programs, customer identification programs, and beneficial ownership requirements for banks that lack a federal functional regulator is March 15, 2021.

The Board, the FDIC, and the OCC adopted as final the interim final rule issued in the Federal Register on April 17, 2020, making temporary amendments to the agencies’ regulations requiring appraisals for certain real estate-related transactions. More... The final rule adopts the deferral of the requirement to obtain an appraisal or evaluation for up to 120 days following the closing of certain residential and commercial real estate transactions, excluding transactions for acquisition, development, and construction of real estate. Regulated institutions should make best efforts to obtain a credible estimate of the value of real property collateral before closing the loan and otherwise underwrite loans consistent with the principles in the agencies’ Standards for Safety and Soundness and Real Estate Lending Standards. The agencies’ final rule allows regulated institutions to expeditiously extend liquidity to creditworthy households and businesses in light of recent strains on the U.S. economy as a result of the coronavirus disease 2019 (COVID-19). The final rule adopts the interim final rule with one revision in response to comments received by the agencies on the interim final rule. The final rule is effective October 16, 2020 through December 31, 2020 (Regulation Y, Docket R-1713) and was published in the Federal Register on October 16, 2020.

The Board, the Consumer Financial Protection Bureau, the FDIC, the National Credit Union Administration, and the OCC are inviting comment on a proposed rule that would codify the Interagency Statement Clarifying the Role of Supervisory Guidance issued by the agencies on September 11, 2018. More... By codifying the 2018 statement, the proposed rule is intended to confirm that the agencies will continue to follow and respect the limits of administrative law in carrying out their supervisory responsibilities. The 2018 statement reiterated well-established law by stating that, unlike a law or regulation, supervisory guidance does not have the force and effect of law. As such, supervisory guidance does not create binding legal obligations for the public. The proposal would also clarify that the 2018 statement, as amended, is binding on the agencies. Comments on this notice of proposed rulemaking must be received by January 4, 2021 (Docket R-1725).