On May 10, Treasury and HUD released the April 2013 housing scorecard,which provides information on the housing market and the Obama Administration’s foreclosure prevention programs. Treasury Release. April 2013 Scorecard.
On January 17, Treasury and the IRS issued comprehensive final regulations implementing the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). These regulations finalize the step-by-step process for U.S. account identification, information reporting, and withholding requirements for foreign financial institutions (FFIs), other foreign entities, and U.S. withholding agents. Treasury Release. FATCA Information.
On November 29, the Fed and the Financial Crimes Enforcement Network, a bureau of the Treasury, proposed amended definitions of “funds transfer” and “transmittal of funds” under the regulations implementing the Bank Secrecy Act. The proposed amendments maintain the current scope of funds transfers and transmittals subject to the Bank Secrecy Act following amendments to the Electronic Fund Transfer Act made pursuant to the Dodd-Frank Act. Comments must be submitted no later than January 25, 2013. Fed Release. Fed Proposed Rule.
On September 27, Treasury sent a letter to the Financial Stability Oversight Council calling for structural reforms to the regulation of money market funds. The letter, which relates to last month’s announcement by the SEC that it would not proceed with public comment on MMF reforms, requested that the FSOC solicit comments on certain MMF reforms and provide a recommendation to the SEC to adopt such standards. Treasury Letter.
As well as conclusions relating to the conduct of Barclays and the FSA’s LIBOR investigation, the report also includes a number of points of general regulatory interest including:
- Firms must be encouraged also to self-report.
- The committee requires the FSA to report to it on how it will alter its supervisory efforts to counter weak compliance by firms in future.
- Wheatley (FSA) review should consider the case for amending the present law by widening the meaning of market abuse to include the manipulation, or attempted manipulation of LIBOR and other benchmark rates.
- A formal and comprehensive framework needs to be put in place by the Serious Fraud Office (SFO) to ensure effective relations in the investigation of serious fraud in the financial markets.
The BoE submitted a response to the report on August 18. Response.
On August 17, Treasury announced modifications to the Preferred Stock Purchase Agreements between Treasury and the FHFA to expedite the wind down of Fannie Mae and Freddie Mac. The modifications include: (i) the accelerated wind down of the retained mortgage investment portfolios at Fannie Mae and Freddie Mac; (ii) an annual taxpayer protection plan; and (iii) a full income sweep of all future Fannie Mae and Freddie Mac earnings to benefit taxpayers. Treasury Release. FHFA Release.
On July 13, Treasury issued a supplemental directive to provide guidance to servicers for compliance with the requirements of the Dodd-Frank Act and Making Home Affordable requirements related to borrower identity and owner-occupancy for non-GSE mortgages. Guidance.
On May 30, the Financial Stability Board (FSB) approved the establishment of a global legal entity identifier (LEI) system that will provide a unique global identifier for parties to financial transactions. The LEI system was developed as part of the mandate of the Dodd-Frank Act directing the Treasury to collect financial transaction data from financial companies. The FSB projects a launch of the global LEI system by March 2013. FSB Release.
On December 1, SIGTARP, the Consumer Financial Protection Bureau, and Treasury created a joint task force to deal with scams targeted at homeowners seeking HAMP modifications. The joint task force issued a fraud alert which will be provided directly to homeowners eligible for HAMP. Treasury Release. Consumer Fraud Alert.