Financial Compliance

Statement on Final Rule Removing Reputational Risk from Supervisory Program

FDIC Chairman Travis Hill issued a statement announcing a final rule that eliminates "reputational risk" from the FDIC's bank supervisory program. The rule codifies the removal of supervisory focus on reputation risk as a standalone risk category, effective April 7, 2026. The change addresses concerns that unfocused attention to reputation risk could lead to pressure on banks to debank law-abiding customers.

Statement on Proposal to Implement the BSA Program Rule

FDIC Chairman Travis Hill delivered a statement at the April 7, 2026 Board meeting describing a proposal to implement the BSA Program Rule under the 2021 Anti-Money Laundering Act. The proposal would establish a risk-based supervisory approach, allowing banks to allocate resources toward high-risk activities and away from low-risk compliance exercises. Banks could rely on Treasury's National Priorities for risk assessments, while regulators would retain authority to act against serious violations such as drug cartel cash deposits or terrorist financing.

Statement on GENIUS Act Stablecoin Implementation Proposal

FDIC Chairman Travis Hill announced the FDIC Board's consideration of a proposed rule to implement the GENIUS Act, establishing prudential requirements for payment stablecoin issuers that are subsidiaries of FDIC-supervised banks. The proposal covers reserve assets, redemptions, permissible activities, capital requirements, pass-through insurance, and the prohibition on yield. The FDIC seeks comment through 144 specific questions, including on tokenized deposit treatment.

Tow Truck Driver Brett David Shearer Disqualified for 3 Years

NSW Fair Trading has disciplined tow truck driver Brett David Shearer by reprimanding him and disqualifying him from holding a tow truck licence or driver's certificate for 3 years. The action follows Shearer's guilty plea to two offences: intimidation with intent to cause fear, and larceny involving theft of 5 sets of car keys in connection with his tow truck business. NSW Fair Trading determined Shearer is no longer a fit and proper person to hold a Tow Truck Drivers Certificate.

SEC bars Vean P. Nguyen from broker-dealer association

The SEC issued an order barring Vean P. Nguyen from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization pursuant to Section 15(b) of the Securities Exchange Act of 1934. The bar follows a June 2025 civil judgment permanently enjoining Nguyen from violating Sections 10(b) and 15(a) of the Exchange Act, Rule 10b-5, and Sections 5(a), 5(c), and 17(a) of the Securities Act. Nguyen, a 42-year-old from Huntington Beach, California, sold fraudulent investments through a purported church (The Church for the Healthy Self) from 2017 to April 2019 without being registered as a broker.

SEC Approves Aon Distribution Plan, Extends Recovery Period

The SEC issued an order approving the Fair Fund distribution plan for $1,572,187.79 collected from Aon Investments USA Inc. and Claire P. Shaughnessy following January 2024 enforcement orders. The Commission amended the plan to extend the Relevant Period for calculating eligible investor losses after considering comments from Morgan Lewis on behalf of PSERS regarding loss limitations and fee calculations.

SEC Announces Enforcement Results for Fiscal Year 2025

The SEC announced enforcement results for FY2025, reporting 456 total enforcement actions including 303 standalone actions and 69 follow-on administrative proceedings, with $17.9 billion in total monetary relief ordered. The Commission stated it refocused enforcement on direct investor protection, moving away from cases lacking demonstrated investor harm such as certain book-and-record violations.

Tax Identity Theft Consumer Alert - April 15 Deadline

Michigan Attorney General Dana Nessel reissued a consumer alert warning residents about tax-related identity theft ahead of the April 15 filing deadline. The alert provides preventive guidance including securing Social Security Numbers, filing electronically on secure connections, and thoroughly researching tax preparers before sharing personal information.

ASIC Cancels AFS Licence of The Silverfern Group Pty Ltd

ASIC has cancelled the Australian Financial Services (AFS) licence of The Silverfern Group Pty Ltd (AFSL 382641) with the entity's consent. The cancellation followed ASIC enquiries regarding non-compliance with statutory reporting, audit requirements and failure to pay ASIC fees. Silverfern resolved its compliance issues prior to the cancellation taking effect.

AG Jennings sues Trump to block federal election interference

Delaware Attorney General Kathleen Jennings announced the filing of a lawsuit against the Trump administration seeking to block federal interference with state election administration. The lawsuit, filed in federal court, challenges actions perceived as overreach into Delaware's sovereign authority over its electoral processes. The legal action represents a states' rights dispute regarding the division of authority between federal and state governments in election administration.