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Joint Statement of BSA/AML Compliance

April 09, 2021: Federal regulators issued a joint statement addressing how risk management principles in “Supervisory Guidance on Model Risk Management” relate to banking systems or models designed for Bank Secrecy Act compliance.

Statement: The statement says no specific risk management framework is required. It also notes the statement does not alter existing BSA/AML legal or regulatory requirements or establish new supervisory expectations.The statement further notes that it does not alter existing BSA/anti-money laundering (AML) legal or regulatory requirements or establish new supervisory expectations, and that no specific model risk management framework is required.The agencies, along with the National Credit Union Administration and the Financial Crimes Enforcement Network, also announced a request for information (RFI) on the extent to which the principles discussed in the guidance support compliance by banks and credit unions with BSA/AML and Office of Foreign Assets Control requirements.

Comments: The agencies also requested information within 60 days on how the principles discussed in the guidance support BSA/AML compliance and whether additional clarification would be helpful.

Reference: Federal Reserve Press Release / April 09, 2021 (

CFPB Proposes Delaying Debt Collection Rules

The Consumer Financial Protection Bureau proposed delaying the effective date of two recent debt collection rules to provide more time to comply.

Delay: Issued late last year, the rules are scheduled to take effect on November 30, 2021. The CFPB is proposing to extend the effective date of both rules to January 29, 2022.

Rule Changes:

The first debt collection rule, issued in October 2020, focuses on the use of communications related to debt collection, and clarifies prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt.

The second debt collection rule, issued in December 2020, clarifies disclosures debt collectors must provide to consumers at the beginning of collection communications. The rule also prohibits debt collectors from making threats to sue, or from suing, consumers on time-barred debt. The rule requires debt collectors to take specific steps to disclose the existence of a debt to consumers before reporting information about the debt to a consumer reporting agency.

Comments: The proposal will be open for comment for 30 days following publication in the Federal Register.

Reference: Consumer Finance Newsroom / April 07,2021/ (

Regulatory Question and Answer

Question: What are the fair lending laws and regulations?

Answer: Fair lending laws and regulations are the result of the Civil Rights movement of the 1960s. Before the1960s housing and credit were routinely denied to people of color and to women in this country.

The Fair Housing Act (Title VII of the Civil Rights Act) and Equal Credit Opportunity Act (enacted by Regulation B) are the predominant fair lending laws. Other laws/regulations associated with fair lending are:

  • The Home Mortgage Disclosure Act (Regulation C) and
  • The Community Reinvestment Act (Regulation BB).

Data collected under these laws are used to help determine whether certain goals are being met and used by examiners to help select banks for examination according to criteria related to the risk of fair lending violations.

Reference: OCC Fair Lending Handbook, Jan.2010.

Question: Are paid expenses considered a thing of value under Bank Bribery Act?

Answer: No, Section (c) specifically states: This section shall not apply to bona fide salary, wages, fees, or other compensation paid, or expenses paid or reimbursed, in the usual course of business.

Note: Although compensation under this section is not considered bribery, other regulations and acts do prohibit compensation depending on circumstances –e.g., RESPA Section 8.

Reference: Bank Bribery Act 18 USC 215(c)