ViClarity Compliance Update

​Some FAQs on beneficial ownership reporting; liability for unauthorized EFTs under Regulation E; annual escrow statement info; and much more. 

The Dakota Credit Union Association’s dues-supported compliance solution –  ViClarity – is a world leader in credit union compliance. To read the complete articles/answers that are linked, you will need to log in with your username and password. If you have questions about establishing your members-only account with ViClarity, click here for detailed instructions or contact John Alexander in the DakCU office.
 
January FAQs
Q: Why must companies report beneficial ownership information to the U.S. Department of the Treasury?
A: In 2021, Congress passed the Corporate Transparency Act. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structure.  

Q: Can a financial institution consider a consumer’s negligence when determining liability for unauthorized EFTs under Regulation E?
A: No, Reg E sets forth the conditions in which consumers may be held liable for unauthorized transfers, and its commentary expressly states that negligence by the consumer cannot be used as the basis for imposing greater liability than is permissible under Regulation E.
 
Q: What information must be included in an annual escrow statement?
A: The annual escrow statement must include an account history that reflects the activity in the escrow account during the prior escrow account computation year and a projection of the activity in the account for the next escrow account computation year.

To learn more about any of the above FAQs click here.
 
CFPB Announces Adjustments to HMDA Exemption Threshold for 2024
In a move aimed at refining regulatory requirements for financial institutions, the Consumer Financial Protection Bureau (CFPB) has announced adjustments to the Home Mortgage Disclosure Act (HMDA) exemption threshold, effective January 1, 2024. The threshold has been increased from $54 million to $56 million. Read more on this topic here.
 
IRS Reminds Pre-1951 Births of Required Minimum Distributions and 2023 Updates
The Internal Revenue Service (IRS) has issued a reminder to individuals born before 1951, regarding year-end deadlines for Required Minimum Distributions (RMDs) from individual retirement arrangements (IRAs) and other retirement plans. This communication also underscores new requirements outlined in the law, particularly impacting those born in 1951 and later. Read more on this topic here.

FinCEN’s Final Rule on Beneficial Ownership Information Access
On December 21, 2023, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) issued a final rule outlining the framework for access to and protection of Beneficial Ownership Information (BOI). Released in alignment with the bipartisan Corporate Transparency Act (CTA), this rule marks a significant stride in enhancing corporate transparency and combating illicit finance. Read more on this topic here and for addition details, refer to the Beneficial Ownership Information Access and Safeguards Fact Sheet.
 
CFPB Imposes $21 Million Penalty on U.S. Bank
The Consumer Financial Protection Bureau (CFPB) levied a significant penalty against U.S. Bank for its alleged misconduct during the height of the COVID-19 pandemic. On December 19, 2023, the CFPB ordered U.S. Bank to pay nearly $21 million for obstructing access to unemployment benefits for out-of-work consumers. The penalty is a stern response to the bank's failure to provide a reliable and expeditious process for consumers to regain access to their accounts, which were frozen en masse during the pandemic. Given the importance of maintaining consumer trust and adherence to regulatory standards, credit unions are encouraged to take proactive measures to prevent similar issues. Read more on this subject here.