The Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, “the agencies”) issued on June 17, 2016, a Joint Statement on the New Accounting Standard on Financial Instruments—Credit Losses. More... The guidance provides supervised institutions with initial information and supervisory views on the new accounting standard for credit losses issued by the Financial Accounting Standards Board. The new accounting standard replaces the existing incurred loss methodology for estimating allowances with a current expected credit losses methodology. While the standard applies to institutions of all asset sizes, the agencies believe the new accounting standard can be implemented in a manner appropriate to an institution’s asset size and complexity (Guidance, Allowance for Loan and Lease Losses at 3-1488).

The Board issued updated supervisory guidance on June 8, 2016. More... Supervisory Guidance for Assessing Risk Management at Supervised Institutions with Total Consolidated Assets of Less Than $50 Billion outlines core risk categories and risk-management principles, and provides clarification on and distinguishes supervisory expectations for the roles and responsibilities of the board of directors and senior management for an institution’s risk management (Guidance, Risk Management at 3-1579.243).

The Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of the Treasury, published a notice of finding in the Federal Register on July 22, 2014, that reasonable grounds exist for concluding that FBME Bank Ltd. (FBME), formerly known as the Federal Bank of the Middle East Ltd., is a financial institution of primary money laundering concern pursuant to section 311 of the USA PATRIOT Act. More... On the same date, FinCEN also published in the Federal Register a notice of proposed rulemaking to propose the imposition of a special measure authorized by section 311 against FBME and opened a comment period that closed on September 22, 2014. On July 29, 2015, FinCEN published in the Federal Register a final rule imposing the fifth special measure, which the United States District Court for the District of Columbia subsequently enjoined before the rule’s effective date of August 28, 2015. FinCEN is issuing this final rule imposing a prohibition on U.S. financial institutions from opening or maintaining a correspondent account for, or on behalf of, FBME in place of the rule published on July 29, 2015. The final rule became effective July 29, 2016 (Department of the Treasury, Financial Crimes Enforcement Network at 3–1700) and was published in the Federal Register on March 31, 2016.

FinCEN issued final rules under the Bank Secrecy Act to clarify and strengthen customer due diligence requirements for: banks; brokers or dealers in securities; mutual funds; and futures commission merchants and introducing brokers in commodities. The rules contain explicit customer due diligence requirements and include a new requirement to identify and

verify the identity of beneficial owners of legal entity customers, subject to certain exclusions and exemptions. Covered financial institutions must comply with these rules by May 11, 2018. The final rules became effective July 11, 2016 (Department of the Treasury, Financial Crimes Enforcement Network at 3–1700) and were published in the Federal Register on May 11, 2016.

FinCEN is amending the regulations under the Bank Secrecy Act to adjust the maximum amount or range, as set by statute, of certain civil monetary penalties within its jurisdiction to account for inflation. More... This action is being taken to implement the requirements of the Federal Civil Penalties Inflation Adjustment Act of 1990, as further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The interim final rule became effective August 1, 2016 (Department of the Treasury, Financial Crimes Enforcement Network at 3–1700) and was published in the Federal Register on June 30, 2016.

The Consumer Financial Protection Bureau (CFPB) issued a final rule amending the regulatory text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). More... The CFPB is required to calculate annually the dollar amounts for several provisions in Regulation Z; this final rule revises, as applicable, the dollar amounts for provisions implementing amendments to TILA under the Credit Card Accountability Responsibility and Disclosure Act of 2009, the Home Ownership and Equity Protection Act of 1994, and the Dodd-Frank Wall Street Reform and Consumer Protection Act. In addition to adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index in effect on June 1, 2016, the CFPB is correcting a calculation error pertaining to the 2016 subsequent violation penalty safe harbor fee. The final rule becomes effective January 1, 2017, except for the amendment to section 1026.52(b)(1)(ii)(B) which became effective June 27, 2016 (Consumer Financial Protection Bureau, Regulation Z at 6–5600) and was published in the Federal Register on June 27, 2016.

The Board is modifying a system of records, BGFRS-1 (FRB-Recruiting and Placement Records), to account for a new electronic system that Board staff will use to identify, track, screen, and select for certain positions at the Board. In connection with the implementation, the Board is amending the system of records to update the location and manager, the categories of records, the access controls, the retention period, and the record source categories, and to identify the authority more specifically. More... The Board is not adding or deleting any routine uses or changing the exemptions claimed for this system of records. Comments on this notice of amended system of records must be received by July 20, 2016. The amended system of records will become effective August 1, 2016, unless comments dictate otherwise (Systems of Records of the Federal Reserve System at 8-333, Docket OP-1541). This notice of amended system of records was published in the Federal Register on June 20, 2016.

The Board is modifying a system of records, BGFRS-39 (FRB-General File of the Community Advisory Council), to correct the legal authority cited for maintenance of the system and to clarify the types of records that are maintained about a member’s service on the Community Advisory Council. More... The amended system of records became effective May 3, 2016 (Systems of Records of the Federal Reserve System at 8-333, Docket OP-1511). This notice of amended system of records was published in the Federal Register on March 24, 2016.