|
NO FALSE NEGATIVES
The Minimum BSA/AML Compliance Standard
PATRIOT OFFICER
Neither behavior-based systems nor rule-based systems can meet the minimum BSA/AML Compliance standard of NO FALSE NEGATIVES. PATRIOT OFFICER is the only Risk-Based solution that uses the Artificial Intelligence and Machine Learning technologies to establish the most advanced Risk Model that has NO FALSE NEGATIVES.
Don't waste time and resources on obsolete tools. Join the United AI Network™ today to protect your financial institutions with PATRIOT OFFICER, GUARDIAN OFFICER, ENQUIRER OFFICER, and CHAMPION OFFICER. — AI OASIS
— GlobalVision Systems, Inc.
|
|
|
Military lender pays $2.175M to settle CFPB charges
The CFPB has announced it has issued a consent order against Omni Financial of Nevada, Inc. (Omni). The Bureau found that Omni violated the Military Lending Act (MLA), Electronic Fund Transfer Act (EFTA), and Consumer Financial Protection Act of 2010 (CFPA) in connection with making installment loans. Omni, which has its principal place of business in Las Vegas, Nevada, and operates using the names Omni Financial and Omni Military Loans, specializes in lending to consumers affiliated with the military. It originates tens of thousands of loans each year, with individual loans typically ranging from $500 to $10,000.
The consent order requires that Omni pay a $2.175 million civil money penalty and imposes injunctive relief to stop ongoing violations and prevent future violations. For additional details, see "Omni Financial fined $2.175M for violations of Military Lending Act, EFTA and CFPA," in BankersOnline's Penalties pages.
|
How to Effectively Manage High-Risk Customers eBook This eBook discusses the challenges of conventional approaches to managing high-risk customers and highlights four key areas of focus to strengthen CDD/EDD. Learn how to make high-risk customer management more effective and efficient, and enhance your overall BSA/AML program.
— Verafin
|
|
EIDL application deadline extended by SBA
The SBA has announced that the deadline to apply for the Economic Injury Disaster Loan (EIDL) program for the COVID-19 Pandemic disaster declaration has been extended to December 31, 2021. The deadline extension comes as a result of the recent bipartisan COVID-19 relief bill signed by the president on December 27, 2020. Loans are offered at very affordable terms, including a 3.75% interest rate for small businesses and 2.75% for non-profit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Eligible small businesses and non-profits are encouraged to apply to get the resources they need.
|
Bureau issues approval order for dual usage credit cards
The Consumer Financial Protection Bureau has announced it has issued a compliance assistance sandbox (CAS) approval order to Synchrony Bank regarding its proposal to develop a "dual-feature credit card."
The card is designed for consumers with a limited or damaged credit history as a tool that can be used to establish or reestablish a favorable credit history. Synchrony intends to offer a lower rate on secured use with the opportunity for eligible accountholders to graduate to unsecured use after 12 months. The terms of both secured use and unsecured use will be disclosed at the opening of the dual-feature credit card account. The terms will then be redisclosed with the opportunity to opt-in to unsecured use.
A CAS approval offers an entity confronting regulatory uncertainty a "safe harbor" from liability under specified legal provisions. Entities are offered safe harbor for specified conduct that the Bureau finds compliant with those legal provisions, subject to good faith compliance with the terms of the approval. The Synchrony CAS approval order implements the existing safe harbor approval mechanisms provided under the Truth in Lending Act, and is valid for three years.
|
Approval order for earned wage access product
The CFPB also issued a compliance assistance sandbox (CAS) approval order to PayActiv, Inc. covering specific aspects of some of its earned wage access (EWA) products, which allow employees access to their earned but unpaid wages prior to payday. A CAS approval offers an entity confronting regulatory uncertainty a "safe harbor" from liability under specified legal provisions. The PayActiv order implements the existing safe harbor approval mechanisms provided under the Truth in Lending Act, and is valid for two years.
|
OCC publishes CMP inflation adjustments
The OCC has published in this morning's Federal Register a notice of its maximum civil money penalties as adjusted for inflation. The inflation adjustments are required to implement the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. The adjusted penalty amounts are applicable to penalties assessed on or after January 1, 2021, for conduct occurring on or after November 2, 2015. Selected common penalties from the list include:
- Flood insurance requirements: $2,252 per violation
- Appraisal independence requirements: $11,906 for first violation; $23,811 for subsequent violations
- Reporting requirements violations: Tier 1, $10,366; Tier 2, $51,827; Tier 3, lesser of $2,073,133 or 1 percent of total assets
|
OFAC targets two Venezuelan officials
On Wednesday, the Treasury Department announced that OFAC has designated Venezuelan judge Lorena Carolina Cornielles Ruiz and Venezuelan prosecutor Ramon Antonio Torres Espinoza, the Venezuelan government officials who presided over and prosecuted the November 2020 trial and sentencing of six U.S. persons in Venezuela. The six U.S. persons, known as the "Citgo 6," are Citgo executives who were imprisoned in Venezuela in November 2017 after being lured to Caracas under false pretenses.
For identity information on Cornielles Ruiz and Torres Espinoza, see BankersOnline's OFAC Update.
|
See you next year!
There will be no Daily Compliance Briefing tomorrow, as we all take the day off to celebrate New Year's Day. Our first issue of the New Year will hit your email inbox on Monday, January 4, 2021.
|
|
|
|
|
