OCC Revises Information Collection on MLR; FHFA Adopts Final Rules
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
- Federal Register Notice on MLR System
- FHFA Rule on ERCF New Public Disclosure Requirements
- FHFA Rule on Capital Planning & Stress Capital Buffer
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

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
EBA Consults on Certain Standards and Guidelines Under CRR and BRRDRelated Articles
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023
ISSB Standards May Become Effective from January 2024
The International Organization of Securities Commissions (IOSCO) welcomed the confirmation statement by the International Sustainability Standards Board (ISSB) setting out its progress in the development of its first sustainability-related corporate disclosure standards.