The CFPB has filed its 2nd status report with all the Ca federal district court as needed by the Stipulated Settlement Agreement into the lawsuit filed up against the Bureau in might 2019 alleging wrongful wait in adopting laws to implement Section 1071 of this Dodd-Frank Act.
Part 1071 amended the ECOA to require banking institutions to gather and report particular information associated with credit applications created by women- or minority-owned businesses and small enterprises. Such information includes the competition, sex, and ethnicity of this major owners of the company. The Stipulated Settlement Agreement, that the court authorized in February 2020, founded a timetable for the Bureau to activate in area 1071 rulemaking and needed the Bureau to give you status reports into the plaintiffs as well as the court every 3 months until an area 1071 rule that is final given.
The initial two due dates within the Stipulated Settlement Agreement relate genuinely to the SBREFA procedure. The Agreement provides that the Bureau will to produce SBREFA outline of proposals in mind and options considered by September 15, 2020, and certainly will convene A sbrefa panel by October 15, 2020, or just as practicable thereafter if panel members aren’t offered to convene.
The Bureau offered the after information in the status report:
Regulators Offer Greater Transparency into BSA/AML Enforcement Process. On August 13, 2020, the Federal Reserve System, Federal Deposit Insurance Corporation, nationwide Credit Union management, and workplace of this Comptroller regarding the Currency (the вЂњAgencyвЂќ or collectively the вЂњAgenciesвЂќ) given a statement that is joint and clarifying their 2007 guidance regarding the way they evaluate enforcement actions whenever financial institutions violate or are not able to fulfill BSA/AML demands. The Financial Crimes Enforcement Network (вЂњFinCENвЂќ) followed with its very own declaration on August 18, 2020, setting forth its approach when enforcement that is considering against banking institutions that violate the BSA.
In general, the 2 statements, specially the statement that is joint achieve supplying greater transparency in to the regulatorsвЂ™ decision-making processes in relation to pursuing enforcement actions for violations associated with the BSA as well as for AML system inadequacies.