Category Archives: Client Alert

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New Bill Introduced in the U.S. Senate to Require the Disclosure of Ultimate Beneficial Owners of Corporations and LLCs Formed or Registered in the United States

On August 2, 2017, United States Senators Marco Rubio (R-FL) and Ron Wyden (D-OR) jointly introduced Senate Bill 1717, entitled the “Corporate Transparency Act of 2017” (the “Act”).  The Act was referred to the U.S. Senate Committee on Banking, Housing and Urban Affairs.  The Act would amend Title 31 of the United States Code, to … Continue Reading

The 10th Circuit Declares SEC’s Home Courts to be Unconstitutional and Creates Circuit Split

Right after Christmas, the United States Court of Appeals for the Tenth Circuit delivered a lump of coal to the Securities and Exchange Commission in Bandimere v. U.S. SEC,1 ruling that the SEC’s administrative law judges (ALJs) who preside over SEC enforcement actions hold their positions in violation of the Appointments Clause of the United States Constitution. … Continue Reading

Banking Regulators Release Advanced Notice of Proposed Rulemaking on Enhanced Cyber Risk Management Standards

On Oct. 19, 2016, the Board of Governors of the Federal Reserve System (the Board), the Office of the Comptroller of the Currency (the OCC), and the Federal Deposit Insurance Corporation (the FDIC, and the three agencies collectively, the Agencies) jointly issued an advance notice of proposed rulemaking (the ANPR) soliciting public comment on enhanced … Continue Reading

New Proposed RIC Regulations

The Internal Revenue Service (the Service) issued guidance last month that will, practically speaking, make it slightly more difficult for entities to qualify as regulated investment companies (RICs) for federal income tax purposes. Under current law, an SEC registered investment company may qualify as a RIC only if, inter alia, (i) 90 percent of its … Continue Reading

FinCEN Finalizes Customer Due Diligence Rule

May 6, 2016, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury (FinCEN) finalized regulations that will require banks, securities broker dealers, mutual funds, futures commission merchants, and introducing brokers in commodities (collectively, Covered Institutions) to identify and perform due diligence on the ultimate beneficial owners and control persons of any legal … Continue Reading

The DOL Issues Broader Fiduciary Adviser Definition: What Does it Mean for You?

Since the enactment of ERISA in 1974, there has been a dramatic shift in the retirement savings marketplace from employer-sponsored defined benefit plans to participant-directed 401(k) plans, coupled with the widespread growth of Individual Retirement Accounts and Annuities (IRAs). In fact, 401(k) plans did not exist at the time the Department of Labor (DOL) published … Continue Reading

Third District Court of Appeals Reverses Holding on Statute of Limitations for Florida Foreclosures: The Impact of Deutsche Bank Trust Company Americas, as Trustee v. Beauvais

On April 13, 2016, Florida’s Third District Court of Appeal (Third District) issued its en banc opinion in Deutsche Bank Trust Company Americas, as Indenture Trustee for American Home Mortgage Investment Trust 2006-2 v. Beauvais, __ So. 3d __, No. 3D14-575 (Fla. 3d DCA Apr. 13, 2016), holding that “dismissal of a foreclosure action accelerating … Continue Reading

CFPB Observer: Recent Developments from April 27 – May 1, 2015

The authors discuss current developments with the Consumer Financial Protection Bureau (CFPB) including a report of consumer complaints issued by the CFPB’s Office of Servicemember Affairs; an enforcement action against a bank for overdraft practices; an enforcement action against a title company and its mortgage loan officers; the Annual Fair Lending Report issued by CFPB’s … Continue Reading

FinCEN Releases A Geographic Targeting Order Concerning Currency Reporting Laws in Certain Areas of Miami-Dade County

On April 21, 2015, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury (FinCEN), working in conjunction with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the South Florida Money Laundering Strike Force, released a rarely-issued Geographic Targeting Order (GTO) for certain areas of Miami-Dade County. The GTO requires certain … Continue Reading

CFPB Observer: Recent Developments from April 13-17, 2015

The authors discuss current developments with the Consumer Financial Protection Bureau (CFPB) including an enforcement action against a tax-refund anticipation loan company and its owners; guidance regarding housing counselor information; a final rule on the credit card agreement submission process; and an upcoming research conference. Continue Reading.… Continue Reading

Recent DOJ and Regulatory Actions Against Smaller Institutions Suggest That Community Banks Should Continue to Carefully Consider BSA/AML Risks

In recent months, certain small banks have come under increased investigation by FinCEN, federal bank regulators, and in some instances the Department of Justice (DOJ) for alleged non-compliance with the Bank Secrecy Act (BSA) and alleged failure to implement effective anti-money laundering programs. It is important for small banks to keep this development in mind … Continue Reading

CFPB Observer: Recent Developments from April 2-10, 2015

The authors discuss current developments with the Consumer Financial Protection Bureau (CFPB) including an enforcement action against a collection agency and its service providers, an action against a mortgage lender for deceptive advertising, an update to the Supervision and Examination Manual, and meeting notices for the CFPB’s Community Bank Advisory Council and the CFPB’s Academic … Continue Reading

Nevada Supreme Court Clarifies That ‘Consideration Paid’ by Successor Note-Holders Can Limit Recovery in Deficiency Actions

After the Nevada Supreme Court issued a 5-2 decision in Sandpointe Apartments v. Eighth Judicial Dist. Ct., which found that 2011 amendments modifying Nevada’s anti-deficiency protections created limitations on the amount a note-purchaser could recover as part of a deficiency judgment, several constitutional issues remained undetermined regarding loans acquired from the FDIC-as-receiver for failed banks. … Continue Reading

CFPB Observer: Recent Developments from Feb. 16-27, 2015

The authors discuss current developments with the Consumer Financial Protection Bureau (CFPB) including a consumer focus group study on credit reports, a proposed rule that would improve the consumer credit card agreement disclosure process, an upcoming field hearing on consumer arbitration agreements, and an upcoming Credit Union Advisory Council meeting. Continue Reading.… Continue Reading

CFPB Observer: Recent Developments from Feb. 9-13, 2015

The authors discuss current developments with the Consumer Financial Protection Bureau (CFPB) including an issued report and consumer advisory on reverse mortgages, an enforcement action against a non-bank mortgage lender for alleged deceptive advertising practices and kickbacks, and separate enforcement actions and a civil suit against several mortgage lenders for misleading advertising practices. Continue Reading.… Continue Reading

The SEC and FINRA Double-Down on Cybersecurity Enhancement and Prevention

In the wake of recent cybersecurity breaches, the SEC and FINRA simultaneously issued reports this week to the securities industry summarizing cybersecurity examination findings and to investors recommending certain precautions to safeguard online investment information. In its Risk Alert – Cybersecurity Examination Sweep Summary, the SEC describes the results from examinations of more than 100 … Continue Reading

CFPB Observer: Recent Developments from Jan. 26-30, 2015

The authors discuss current developments with the Consumer Financial Protection Bureau (CFPB) including a proposed rule amending mortgage rules relating to small creditors, a Compliance Bulletin providing guidance on the CFPB’s regulations governing the use and disclosure of confidential supervisory information, and guidance on private student loans with graduated repayment terms. Continue Reading.… Continue Reading

AML Developments – FDIC Announces That It Will End Its Supervisory Trend of Expecting Regulated Institutions to ‘De-Risk’ Entire Categories of Customers

On Jan. 28, 2015, the Federal Deposit Insurance Corporation (FDIC) in a Financial Institutions Letter (FIL) announced that it would, in effect, do an about-face on its supervisory expectation that banks strongly consider discontinuing the provision of financial services to entire categories of certain purportedly high-risk customers. These categories of customers included, to name a … Continue Reading
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