Compliance Calendar

JULY

  • The Office of the Comptroller of the Currency (OCC), Federal Reserve Board (FRB), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), and Consumer Financial Protection Bureau (Bureau) are requesting public input on Financial Institutions’ Use of Artificial Intelligence, Including Machine Learning. The agencies are requesting public input on how AI and ML applications are being applied in financial institutions and in order to guide any future clarifications needed for safety and soundness and consumer protection oversight. The agencies are requesting input on potential benefits and risks of AI and ML, including privacy, fair lending, and cybersecurity. Comment due date has been extended to July 1, 2021.
  • The U.S. Mint is proposing revisions to its exchange of uncurrent, bent, partial, fused, and mixed coin regulations. The changes are intended to improve the redemption process and eliminate some of the challenges from counterfeit and fraudulent coin redemption schemes. The proposed changes include new weight and shipment limits (maximum of 1,000 pounds of coins per month per participant), a prohibition on coins imported from outside the U.S., and prohibition on coins damaged in industrial processes such as shredders, burnishers and incinerators or coins that have been punctured, etched or chemically treated. Comments are due on the proposal by July 6, 2021.
  • The FDIC is issuing a proposal to add a Subpart B to its FDIC Advertisement of Membership Regulation that would deal specifically with False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo. The new subpart would establish regulations that further define the prohibition under federal law that no person may misrepresent the FDIC name or logo. The regulation would apply to any person, both regulated institutions and non-regulated institutions. The proposed regulation sets forth the conduct that is prohibited with examples of violative actions. The FDIC’s process for taking action, through both informal and formal resolution, is described. Comments are due on the proposal by July 9, 2021.
  • The FRB is proposing to amend the Debit Card Interchange Fees and Routing Regulation (Regulation II) to clarify that the requirement that debit card transactions must be able to be processed on at least two unaffiliated applies to card-not-present transactions. When the regulation was first implemented in 2011, card-not-present transactions were uncommon, and issuers were not able to support multiple networks for those transactions. That limitation is no longer an issue, and the FRB wants to clarify that the requirement for multiple unaffiliated networks applies to card-not-present transactions as well as card-present transactions. Comment is due by July 12, 2021.
  • The FRB is proposing to issue new guidelines for evaluating account and service requests. The new guidelines would be used by the Federal Reserve Banks when evaluating requests for accounts and services from new institutions as well as evaluating significant changes by existing account holders. The proposed guidelines would require that the institution be eligible under the Federal Reserve Act or other statute to maintain an account at the Federal Reserve, that the account and services should not present or create undue credit, operational, settlement cyber or other risks to the Reserve Bank, the overall payment system, or the stability of the U.S. financial system, and the account and services should not adversely affect the FRB’s ability to implement monetary policy. The proposed guidelines also would require that establishment of an account or services to the institution not create an undue risk to the overall economy by facilitating money laundering, terrorist financing, fraud, cybercrimes, or other illicit activities. Comments are due on this proposal by July 12, 2021.

Copyright © 2021 Compliance Action. Originally appeared in Compliance Action Vol. 26, No. 1, 5/31/2021

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