Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB released an Interim Final Rule in regards to the implementation of the Equal Access to Justice Act (EAJA). The EAJA provides that an agency that conducts an adversary adjudication shall award the prevailing party fees and other expenses incurred by that party in connection with that proceeding. The Interim Final Rule establishes the process for the CFPB to award attorney fees and other litigation expenses to the winning party. Comments are due 60 days after the Interim Final Rule is published in the Federal Register on approximately Aug. 11, 2012.

Office of Foreign Assets Control (OFAC)

The OFAC SDN list was updated again. Last update: June 7, 2012.

Financial Crimes Enforcement Network (FinCEN)

FinCEN released ruling FIN-2012-R003. The ruling discussed the application of money services business (MSB) regulations to a distributer and seller of bank network-branded prepaid cards. If the bank has primary oversight and control over an arrangement to provide prepaid access, any distributor or seller of the card would not need to be registered as a provider of prepaid access and would not be an MSB.

FinCEN also released guidance FIN-2012-G003 on determining eligibility for exemptions from currency transaction reporting (CTR) requirements. The guidance provides for the elimination of designation and annual review for most Phase 1 customers, the definition of ‘frequently’ decreased to five reportable transactions, waiting time for eligibility decreased, and the biennial renewals were eliminated.

PEW Charitable Trusts

The PEW Charitable Trusts released an updated study of the terms and conditions of bank checking accounts. The study found that there continue to be key banking practices that put consumers at financial risk and potentially expose them to high and unexpected costs for little benefit.

Federal Communications Commission (FCC)

The FCC published a final rule to require prior express written consent for all autodialed or prerecorded telemarketing calls to wireless numbers or prerecorded calls to residential lines. The final rule does require written consent when making autodialed, prerecorded telemarketing calls to members’ phones, and either written or oral consent when making autodialed collection calls to a member’s cell phone. The final rule will be effective on July 11, 2012.

Internal Revenue Service (IRS)

The IRS published updated information for credit unions that have received tax exemption revocation letters. The guidance has tips covering (1) A federal credit union appearing on the Auto-Revocation List, even though federal credit unions are not required to file an annual return (2) A state chartered credit union appearing on the Auto-Revocation List (3) A credit union received one or two letters from the IRS stating its parent organization was no longer tax exempt.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Federal.