Washington Report 360 | May 18, 2018 | KPMG | US

Washington Report 360 | May 18, 2018

Washington Report 360 | May 18, 2018

In this issue...

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Key highlights

  • FinCEN’s CDD Rule became effective May 11, 2018; the FFIEC released examination procedures for the new customer due diligence and beneficial ownership requirements.
  • The Senate Banking Committee held confirmation hearings for Richard Clarida and Michelle Bowman to be members of the Federal Reserve Board of Governors; a committee vote is forthcoming.

Financial services policy news

The Senate Banking Committee held confirmation hearings for Richard Clarida and Michelle Bowman to be members of the Federal Reserve Board of Governors. Both candidates said regulatory policy should be "appropriately tailored" to the size, complexity, and risk of an institution.

Randal Quarles indicated the Federal Reserve would seek comment on possible improvements to its resolution plan/living will guidance for U.S. and foreign firms, including the potential for formal resolution capital and liquidity requirements.

Lael Brainard discussed the Federal Reserve's efforts in monitoring and evaluating fintech and digital currencies and the related policy and regulatory implications.

The FRBNY issued a report showing that the largest U.S. bank holding companies have simplified their organizational structures but remain very complex.

Seven law firms released a joint memorandum analyzing the position of the Federal Reserve, OCC, FDIC, and CFPB regarding information protected by attorney-client privilege and asserting that the regulators’ do not have the legal authority to override the privilege or compel supervised institutions to produce information protected by it.

The BCBS and the IOSCO jointly issued Criteria for identifying simple, transparent and comparable short-term securitisations, which build on principles issued by the BCBS-IOSCO in July 2015.

Financial services legislative and regulatory news

FinCEN issued a reminder to financial institutions and their customers that the Customer Due Diligence Requirements for Financial Institutions (the CDD Rule) is effective. FinCEN also issued an administrative ruling providing limited exceptive relief from the beneficial ownership requirements of the CDD Rule for certain products.

The FFIEC issued two sets of examination procedures for FinCEN’s CDD Rule, one to replace procedures issued in 2014 and one to add procedures for the new beneficial ownership requirements for legal entity customers.

The FDIC announced a July 31, 2018 deadline for its annual survey of branch office deposits for all FDIC-insured institutions, including insured U.S. branches of foreign banks.

The CFTC's Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter for non-U.S. counterparties that enter into swaps with international financial institutions.

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