STATE GOVERNMENT RELATIONS
Register for 2022 IBA Regional Meetings
The IBA is once again hosting a series of regional meetings around the state to facilitate grassroots communication between the bankers we serve and the legislators who serve our state. The meetings will include an hour-long update on the IBA, including legislative information and advocacy opportunities. Following the update, local legislators from the Indiana General Assembly will meet for lunch with bankers from the community. Five regional meetings remain, each beginning at 11:00 a.m. local time. Below are the dates, locations and registration links of each regional meeting.
Merrillville – July 19
Cooper’s Hawk
2120 Southlake Mall
Merrillville, IN 46410
West Lafayette – July 20
Walt’s Pub & Grill
1050 Kalberer Road
West Lafayette, IN 47906
New Albany – August 4
The Exchange Pub
118 W Main Street
New Albany, IN 47150
Richmond – August 29
Olde Richmond Inn
138 South 5th Street
Richmond, IN 47374
Bloomington – August 30
Graduate Hotel
210 East Kirkwood Avenue
Bloomington, IN 47408
FEDERAL GOVERNMENT RELATIONS
CFPB Advisory Opinion Warns of Liability for Consumer Report Users
The Consumer Financial Protection Bureau yesterday issued an interpretive rule related to the Fair Credit Reporting Act’s provisions regarding companies that use and share consumer reports. While much of the document focuses on the responsibilities of consumer reporting agencies, it also addresses responsibilities of users of consumer reports, which include banks.
Specifically, the interpretive rule noted that consumer report users must ensure they do not violate a person’s privacy by obtaining or using a report without a permissible purpose, and that it is illegal for consumer reporting companies to provide “possible matches” to users.
The CFPB cautioned that a user who incorrectly inputs consumer information when obtaining a report can result in that user obtaining a report without a “permissible purpose” and violating consumer privacy rights. The bureau further emphasized its position that that there is strict liability for obtaining or using a consumer report without a permissible purpose, and also included a reminder about criminal liability for knowing or willful violations of the FCRA provisions.
Interagency Statement Reiterates Due Diligence Expectations
The federal banking agencies and the Financial Crimes Enforcement Network on Wednesday issued a statement reminding banks of the risk-based approach to assessing customer relationships and conducting customer due diligence (CDD). The statement – which does not alter existing regulatory requirements or establish new supervisory expectations in – emphasizes that “no customer type presents a single level of uniform risk or a particular risk profile related to money laundering, terrorist financing, or other illicit financial activity,” and that institutions operating in compliance with BSA/AML rules “are neither prohibited nor discouraged from providing banking services to customers of any specific class or type.”
“The Agencies continue to encourage banks to manage customer relationships and mitigate risks based on customer relationships, rather than decline to provide banking services to entire categories of customers,” the statement noted. “In addition, the Agencies recognize that banks choose whether to enter into or maintain business relationships based on their business objectives and other relevant factors, such as the products and services sought by the customer, the geographic locations where the customer will conduct or transact business, and banks’ ability to manage risks effectively.”
When developing a risk-based approach to CDD, banks should adopt procedures that enable them to understand the nature and purpose of customer relationships for the purpose of developing a customer risk profile, and conduct ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information, the agencies indicated.
Treasury Releases Framework for International Digital Asset Engagement
The Treasury Department delivered to President Joe Biden a framework for the federal government’s international engagement on digital assets.
Required by the president’s executive order on responsible digital asset development, the framework focuses on ensuring the process:
- Respects U.S. democratic values.
- Protects consumers, investors, and businesses.
- Preserves global financial system connectivity and interoperability.
- Maintains the safety and soundness of the global financial and monetary systems.
Separately, Treasury is requesting comment on digital assets as it develops a report responding to the president’s executive order. With comments due in 30 days, the request seeks feedback on any matter relevant to a Treasury report on the implications of developing and adopting digital assets, including stablecoins, central bank digital currency and more.