November 2019 Compliance Journal: Compliance Notes

The below article is the Compliance Notes section of the November 2019 Compliance Journal. The full issue may be viewed by clicking here.

The Wisconsin Court System’s Records Management Committee no longer maintains the transfer by affidavit form used to transfer property of decedents with estates of $50,000 or less. Currently, the State Bar of Wisconsin’s Real Property, Probate, and Trust Law Section maintains the transfer by affidavit form which has been updated and is available on the State Bar’s website along with form instructions. While the format of the form has changed, its purpose, function, and governing law under Wis. Stat. 867.03 has not changed.

One format change that WBA was made aware of was how the affiant completes the Wisconsin Department of Health Services (DHS) section. On the prior form, the affiant indicated that if they “did not know” whether the decedent received aid, that they had to submit notice to DHS. It is unclear on the new form whether such notice is required. However, WBA has heard from the Bar that it was not their intent to change the form in this way or any other. As such, notice should be submitted to DHS when “did not know” is selected on the form.


FFIEC revised the “Business Continuity Management” booklet, one of a series of booklets that make up the FFIEC Information Technology Examination Handbook (IT Handbook). The revised “Business Continuity Management” booklet provides information for examiners to assess the adequacy of a bank’s risk management related to the availability of critical financial products and services. The revised booklet replaces the “Business Continuity Planning” booklet issued in February 2015 and rescinds OCC Bulletin 2015-9, “FFIEC Information Technology Examination Handbook: Strengthening the Resilience of Outsourced Technology Services, New Appendix for Business Continuity Planning Booklet.” The booklet may be viewed at: https://ithandbook.ffiec.gov/it-booklets/business-continuity-management.aspx


FinCEN issued an advisory to inform financial institutions of updates to the FATF list of jurisdictions with strategic AML/CFT deficiencies. Financial institutions should be aware of these changes, which may affect their obligations and risk-based approaches with respect to these jurisdictions. The advisory also reminds financial institutions of the status of, and obligations involving, these jurisdictions, in particular the Democratic People’s Republic of Korea (DPRK) and Iran. The advisory may be viewed at: https://www.fincen.gov/sites/default/files/advisory/2019-11-12/FATF%20Advisory%20October%202019%20FINAL_508.pdf


FRB Chair Jerome Powell testified before the Joint Economic Committee of Congress, commenting on the outlook for the economy and monetary policy. Powell’s testimony may be viewed at: https://www.federalreserve.gov/newsevents/testimony/powell20191113a.htm


CFPB issued a report with state-by-state comparisons of financial well-being scores. The scores are based on Bureau analysis of the Financial Industry Regulatory Authority Foundation’s 2018 National Financial Capability Study. The report shows that the average financial well-being scores for all adults (ages 18 and older) in the United States ranged from a low of 50 in Mississippi to a high of 54 in California, the District of Columbia and Hawaii. For the United States, the average financial well-being score was 52. The repost may be viewed at: https://files.consumerfinance.gov/f/documents/201911_cfpb_fwb-state-report.pdf


FHFA issued its semi-annual Credit Risk Transfer Progress Report describing the status and volume of credit risk transfer (CRT) transactions through the second quarter of 2019.  Through the first half of 2019, Fannie Mae and Freddie Mac transferred 84 percent and 89 percent, respectively, of the allocated credit risk capital on 2018 acquisitions covered by credit risk transfer. Of the total single-family loan acquisitions of the Enterprises in 2018, 73 percent were targeted for credit risk transfer.  The full report may be viewed at: https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/CRT-Progress-Report-2Q19.pdf


FATF published the November 2019 edition of its Business Bulletin which lists the organizations strategic initiative. The bulletin may be viewed at: http://www.fatf-gafi.org/media/fatf/documents/bulletin/FATF-Business-Bulletin-November-2019.pdf


FRB issued its November 2019 Consumer & Community Context which covers the topic of small businesses’ access to capital, and includes articles on experiences of small business owners when searching for financing online, disparities in small business credit approval by race and ethnicity, and small businesses’ access to financial services in low- and moderate-income communities. The full publication may be viewed at: https://www.federalreserve.gov/publications/files/consumer-community-context-201911.pdf


FATF is developing guidance to clarify how digital identity (digital ID) systems can be used for customer due diligence (CDD). The draft guidance intends to help governments, financial institutions and other relevant entities apply a risk-based approach to the use of digital ID for CDD. The draft may be viewed at: http://www.fatf-gafi.org/publications/fatfrecommendations/documents/consultation-digital-id-guidance.html


FTC issued a new report which shows that adults aged 60 and older are less likely to report losing money to fraud than younger adults, but the amount of money they report losing is on the rise. Older consumers reported losing money most often to phone scams, with online scams coming in second place. Payment by gift cards became the most frequently reported method of payment by older adults in the second half of the year, but wire transfers persisted in the top spot for total dollars paid by older consumers. The report may be viewed at: https://www.ftc.gov/system/files/documents/reports/protecting-older-consumers-2018-2019-report-federal-trade-commission/p144401_protecting_older_consumers_2019_1.pdf


OCC issued revised “Branches and Relocations,” “Charters,” “Federal Branches and Agencies,” and “General Policies and Procedures” booklets of the Comptroller’s Licensing Manual. The revised booklets streamline licensing processes to reflect that the National Historic Preservation Act, and the National Environmental Policy Act. The notice may be viewed at: https://www.occ.gov/news-issuances/bulletins/2019/bulletin-2019-50.html

By, Ally Bates