Featured Product

    OCC Revises Information Collection on MLR; FHFA Adopts Final Rules

    June 08, 2022

    The Office of the Comptroller of the Currency (OCC) is seeking comments, until August 08, 2022, on the revision of existing information collection on the Money Laundering Risk (MLR) System. Additionally, the Federal Housing Finance Agency (FHFA) adopted a final rule amending the Enterprise Regulatory Capital Framework by introducing new public disclosure requirements for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). FHFA also adopted the final rule requiring Fannie Mae and Freddie Mac to submit annual capital plans and provide prior notice for certain capital actions.

    Key highlights of the aforementioned updates follow:

    • OCC proposed to revise the existing information collection MLR on Bank Secrecy Act/Money Laundering Risk Assessment. The MLR covers information on products or customers that may be experiencing difficulties or challenges maintaining banking services and is a starting point for banks to develop their risk assessments. OCC’s annual Risk Summary Form (RSF) for 2022 collects data about different products, services, customers, and geographies and included. The changes include the deletion of four and addition of six new products, services, and customers: cash transactions, marijuana-related businesses, ATM Operators, crypto assets—custody, stablecoin issuance, and stablecoin payments.
    • The final rule from FHFA on amendments to the Enterprise Regulatory Capital Framework implementing new public disclosure requirements for Fannie Mae and Freddie Mac include quantitative and qualitative disclosures related to risk management, corporate governance, capital structure, and capital requirements and buffers under the standardized approach. The public disclosure requirements in the final rule align with many of the public disclosure requirements for large banking organizations under the regulatory capital framework adopted by United States banking regulators. The final rule will come in effect from August 01, 2022.
    • Additionally, FHFA adopted a final rule requiring each Enterprise to submit annual capital plans and provide prior notice for certain capital actions. The requirements in the final rule are consistent with those in the regulatory framework for capital planning for large bank holding companies. The final rule's requirement to develop capital plans will allow the Enterprises to identify the amount of capital they need to raise to meet the Enterprise Regulatory Capital Framework's requirements and to consider the timing of when to raise capital and what types of capital to raise. The final rule will require an Enterprise to develop and maintain a capital plan, which the Enterprise must generally submit to FHFA by May 20 of each year. The plan must contain certain mandatory elements, including an assessment of the expected sources and uses of capital over a planning horizon that reflects the Enterprise's size and complexity, assuming both expected and stressful conditions. The final rule will come in effect from August 02, 2022.

     

    Related Links

     

    Keywords: Americas, US, Banking, Bank Secrecy Act, Money Laundering, ML Risk, MLR System, Crypto-Assets, Basel, Regulatory Capital, Disclosures, Fannie Mae, Freddie Mac, Standardized Approach, Capital Adequacy, Capital Planning, Stress Capital Buffer, FHFA, Stablecoins, OCC

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582