Financial Compliance

Community Bank Licensing Amendments Final Rule

The OCC issued a final rule amending community bank licensing requirements. The rule simplifies licensing for national banks and federal savings associations with less than $30 billion in assets, providing them access to expedited filing procedures. This aims to reduce regulatory burden for these institutions.

NCUA Removes Disparate Impact References from Guidance

The NCUA has removed references to disparate impact liability from its Fair Lending Guide and other issuances, consistent with Executive Order 14281. Examiners will no longer request or review information related to a credit union's disparate impact risk.

NCUA 2026 Supervisory Priorities

The National Credit Union Administration (NCUA) has released its supervisory priorities for 2026, focusing on areas posing the highest risk to credit union members and the Share Insurance Fund. Key areas include balance sheet management, particularly lending practices, due to recent declines in loan performance and rising delinquency rates.

Federal Credit Union Operating Fees Decrease for 2026

The NCUA announced that federal credit union operating fees will decrease by an average of 24.65% in 2026 due to budget reductions and repurposed funds. The exemption threshold for these fees has also been increased. Invoices will be issued in March 2026, with payment due by April 17, 2026.

NCUA Removes Reputation Risk from Banking Guidance

The National Credit Union Administration (NCUA) has removed reputation risk from its examination and supervisory guidance, effective September 25, 2025, in accordance with Executive Order 14331. This change directs NCUA employees to no longer base supervisory concerns on reputation risk when examining federally insured credit unions.

NCUA Extends 18% Loan Interest Rate Ceiling for Federal Credit Unions

The National Credit Union Administration (NCUA) has extended the temporary 18% interest rate ceiling for loans made by federal credit unions. This extension, approved by the NCUA Board, will now last through September 10, 2027, providing continued flexibility for consumer lending.

FinCEN Special Measures Imposed on Financial Institutions

The Federal Reserve issued SR 25-3 to inform supervised financial institutions about special measures imposed by FinCEN under the USA PATRIOT Act and other acts. These measures create legal obligations for institutions dealing with entities designated as primary money laundering concerns.

Federal Reserve Statement on Regulation O and FDIC Reporting for Investment Funds

The Federal Reserve issued a statement clarifying its enforcement discretion regarding Regulation O and FDIC reporting for certain investment funds. This guidance applies to banks and their principal shareholders, specifically asset managers, and provides temporary relief from certain credit extension restrictions.

FAQs on Suspicious Activity Reporting for Bank Holding Companies

The Federal Reserve, along with other financial regulators, has issued Frequently Asked Questions (FAQs) to clarify Suspicious Activity Reporting (SAR) requirements for financial institutions. These FAQs aim to assist institutions with their compliance obligations under the Bank Secrecy Act and do not alter existing regulations.

ESMA Guidelines on UCITS and AIFs Liquidity Management Tools

The European Securities and Markets Authority (ESMA) has issued new guidelines on liquidity management tools for UCITS and open-ended AIFs. These guidelines aim to enhance investor protection and market stability by providing a common framework for managing fund liquidity.