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    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.


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    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

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