The Federal Deposit Insurance Corp. issued proposed guidelines directing large banks to establish and promote risk management strategies, ethical codes and policies that ensure safe and sound operations, compliance with regulations and consumer protections. Under the proposal, the board of directors at all FDIC-supervised institutions — primarily state-chartered banks that are not part of the Federal Reserve system — with more than $10 billion of assets would need to establish risk management programs commensurate with the firm’s size, risk profile, complexity and business model. The guidance also directs applicable banks to implement what’s known as a “three-line-of-defense” risk management model to keep tabs on reporting risks. The layers of such a model would consist of risk management in banks’ business units, an independent risk management program helmed by a chief risk officer and an internal audit. The guidance further notes banks will be responsible for proactively communicating their risk appetite and maintaining a strategy for promoting compliance by their staff and reporting any breaches of their articulated risk limits.

https://www.americanbanker.com/news/fdic-proposes-stricter-governance-guidelines-for-regional-banks?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-10-12%20Banking%20Dive%20%5Bissue:55389%5D&utm_term=Banking%20Dive

The Federal Trade Commission today announced a new proposed rule to prohibit junk fees, which are hidden and bogus fees that can harm consumers and undercut honest businesses. The FTC has estimated that these fees can cost consumers tens of billions of dollars per year in unexpected costs.

Today, the Consumer Financial Protection Bureau (CFPB) issued an advisory opinion regarding a provision enacted by Congress which generally prohibits large banks and credit unions from imposing unreasonable obstacles on customers, such as charging excessive fees, for basic information about their own accounts. Under a 2010 federal law, large banks and credit unions must provide complete and accurate account information when requested by accountholders. As many large banks shift away from a relationship banking model that prioritizes high levels of customer service, today’s advisory opinion clarifies that people are entitled to get the basic information they need without having to pay junk fees.

The Securities and Exchange Commission adopted rule amendments governing beneficial ownership reporting under Sections 13(d) and 13(g) of the Securities Exchange Act of 1934. The amendments update Regulation 13D-G to require market participants to provide more timely information on their positions to meet the needs of investors in today’s financial markets. amendments: shorten the deadline for initial Schedule 13D filings from 10 days to five business days and require that Schedule 13D amendments be filed within two business days; generally accelerate the filing deadlines for Schedule 13G beneficial ownership reports (the filing deadlines differ based on the type of filer); clarify the Schedule 13D disclosure requirements with respect to derivative securities; and require that Schedule 13D and 13G filings be made using a structured, machine-readable data language. Further, the adopting release provides guidance regarding the current legal standard governing when two or more persons may be considered a group for the purposes of determining whether the beneficial ownership threshold has been met, as well as how, under the current beneficial ownership reporting rules, an investor’s use of certain cash-settled derivative securities may result in the person being treated as a beneficial owner of the class of the reference equity securities.

https://www.sec.gov/news/press-release/2023-219

The Supreme Court will hear oral arguments Tuesday, October 3, 2023, in a case that threatens to wipe out funding for the Consumer Financial Protection Bureau and limit Congress’ ability to fund agencies outside of normal appropriations. The case revolves around the Constitution’s Appropriations Clause, which prohibits government spending “but in Consequence of Appropriations made by Law.” Last year, for the first time ever, the 5th Circuit found that clause also limited how Congress could fund agencies. The appeals court ruled the CFPB’s structure violated the Constitution because Congress allows it to draw funds from the Federal Reserve indefinitely, instead of through the congressional appropriations process.

The Financial Crimes Enforcement Network (FinCEN) issued additional guidance materials for the Beneficial Ownership Information (BOI) reporting requirements. FinCEN has updated its BOI FAQs to include new questions about beneficial owners, initial reports, FinCEN identifiers, and third-party service providers. Translated versions of the FAQs will be posted to FinCEN’s website soon.

FinCEN also has posted to its website a brochure on the new Federal reporting requirement for BOI, as well as additional language translations of the BOI Small Entity Compliance Guide.

The White House plans to introduce a highly anticipated executive order in the coming weeks dealing with artificial intelligence, President Joe Biden said Wednesday. “This fall, I’m going to take executive action, and my administration is going to continue to work with bipartisan legislation,” Biden said, “so America leads the way toward responsible AI innovation.” Biden’s signing of the order would build on an earlier administration proposal for an “AI Bill of Rights.” Civil society groups have urged the Biden administration to require federal agencies to implement the AI Bill of Rights as part of any executive order on the technology. Meanwhile, the US Senate is continuing to educate lawmakers on artificial intelligence in preparation for months of legislative work on the issue. “Vast differences exist among them in terms of what potential it has, what dangers there are, and so, I have a keen interest in AI,” Biden said. “I’ve convened key experts on how to harness the power of artificial intelligence for good while protecting people from the profound risk it also presents.”

https://www.cnn.com/2023/09/27/tech/joe-biden-executive-order-artificial-intelligence/index.html?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-10-02%20CIO%20Dive%20%5Bissue:55031%5D&utm_term=CIO%20Dive

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned five entities and two individuals based in Iran, the People’s Republic of China (PRC), Hong Kong, Türkiye, and the United Arab Emirates (UAE) involved in the procurement of sensitive parts for Iran’s one-way attack unmanned aerial vehicle (UAV) program. This network has facilitated shipments and financial transactions in support of the Islamic Revolutionary Guard Corps Aerospace Force Self Sufficiency Jihad Organization’s (IRGC ASF SSJO) procurement of servomotors, a critical component used in Iran’s Shahed-series UAVs. Iran has been supplying Russia with Shahed-136 UAVs to support Russia’s illegal invasion of Ukraine. One of the servomotors procured by the network designated today was recovered in the remnants of a Russia-operated Shahed-136 that was recently shot down in Ukraine.

The Financial Crimes Enforcement Network (FinCEN) is issuing a Notice of Proposed Rulemaking (NPRM) to extend the deadline for certain reporting companies to file their initial beneficial ownership information (BOI) reports. FinCEN is proposing to amend its final BOI Reporting Rule to provide 90 days for reporting companies created or registered in 2024 to file their initial reports, instead of 30 days. The proposed rule would not make any other changes to the final BOI Reporting Rule: reporting companies created or registered before January 1, 2024, would have until January 1, 2025, to file their initial BOI reports with FinCEN, and entities created or registered on or after January 1, 2025, would have 30 days to file their initial BOI reports.

The U.S. Department of Labor’s Occupational Safety and Health Administration will hold an online meeting on Tuesday, Oct. 24, 2023, to hear public comments and suggestions as part of its effort to improve outreach and training initiatives that support the federal whistleblower laws the agency enforces.