Legal Briefs

The Consumer Financial Protection Bureau (CFPB) released a report on Issues Facing Users of International Money Transfers.  The report focuses on disclosure of remittance transfers and exchange rates, and including remittance transfer information as part of a credit score.

The CFPB announced a number of steps it has taken since opening for business.  The announcement also includes a number of interim rules that the CFPB will be issuing in the near future.  These future rules will include things like rules to implement the Privacy Act and the Freedom of Information Act, CFPB conducting investigations of potential violations of any provision of federal consumer financial law, and various other topics.

The CFPB issued an interim rule regarding the Alternative Mortgage Transaction Parity Act.  The interim rule authorizes state-licensed or chartered housing creditors (including credit unions) to make alternative mortgage transactions in compliance with federal rather than state law.  The rule became effective on July 21, 2011.  Comments are due by September 22, 2011.

The National Credit Union Administration (NCUA) approved a proposed rule extending the Credit Union Service Organization (CUSO) regulations to federally insured, state-chartered credit unions (FISCUs) and other CUSO reforms aimed at mitigating risks for the National Credit Union Share Insurance Fund (NCUSIF).  All CUSOs will need to submit a financial report directly to the NCUA, CUSOs of state-chartered credit unions will also need to submit the same information to their state supervisory agency.  Comments are due within 60 days of publishing in the Federal Register.  Approximately September 22, 2011.

The NCUA approved an interim final conforming rule on remittance transfers to meet requirements from the Dodd-Frank Act.  The interim final rule updates the powers of a federal credit union to include selling remittance transfers to nonmembers within the field of membership.  This interim final rule will be effective once published in the Federal Register.  Comments will be due 60 days after publication.  Approximately September 22, 2011.

Office of Foreign Assets Control
The OFAC SDN list was updated again.  Last update July 25, 2011. 

The Financial Crimes Enforcement Network (FinCEN) Issues final rule regarding Prepaid Access.  This final rule amends the Bank Secrecy Act relating to Prepaid Access and money service business rules to establish a more comprehensive regulatory approach for prepaid access.  The rule will now refer to any stored value cards as prepaid access and will put in place suspicious activity and transactional reporting requirements similar to other categories of the MSBs.

Oregon AG’s Office
The State of Oregon Attorney General’s Office issued a release that advises consumers of steps they should take when facing a foreclosure.  The report also details some scams that members should be aware of when facing financial difficulty. 


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Posted in Advocacy News, Compliance News, Federal.