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Regulatory Question and Answer

Question: Can the bank’s Compliance Officer also be the OFAC Compliance Officer?

Answer: Yes, the FFIEC Examination Manual does not dictate the individual responsible for day to day compliance with OFAC. It is recommended that the individual has appropriate knowledge about OFAC regulations. Depending on the bank’s risk profile and size, this may be a bank’s compliance officer, a compliance analyst, or other qualified individual.

Reference: FFIEC BSA Examination Manual.

Short Compliance Topic

The IRS recently published guidance regarding the forgiveness of loan under the Paycheck Protection Program (PPP). IRS Announcement 2020-12 clarifies that lenders should not file Form 1099-C (Cancellation of Debt) to report loans that are forgiven under the PPP.

Under the PPP, certain qualifying small businesses could obtain loans guaranteed by the Small Business Administration (SBA). Such loans may be forgiven if these certain conditions are

Emerging Regulatory Issues

Recovery Act S. 4537

09/08/20 – Introduced in the Senate by Ted Cruz
Reinvigorating the Economy, Creating Opportunity for every Vocation, Employer, Retiree and Youth Act.

Key Provisions:

  • Would give Americans who stopped saving for retirement in 2020 the ability to make “catch-up” contributions and restore their nest eggs if they took a distribution from their retirement plans to cover expenses.
  • Would permit “unused” 2020 IRA contributions and employer plan deferred limitation to be carried over and contributed in 2021 and/or 2022.

Protecting Homeowners in Bankruptcy Act – H.R.8366

09/24/20 – Introduces in the House by Madeleine Dean
09/30/20 – Passed in the House Judiciary Committee

Key Provisions:

  • Would increase the federal homestead exemptions (allows a debtor to protect a certain amount of equity in their home from creditors when they declare bankruptcy) to $100,000.
  • Would permit states to enact more generous homestead exemptions.