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.
Treasury
Treasury Report on Single Point of Contact
On November 14, Treasury released a report which details the steps that Treasury and other federal agencies took to get the mortgage industry to improve customer service in the Making Home Affordable Program, including through single point of contact requirements. Treasury Release. Treasury Report.
Treasury Pushes for Money Market Fund Reforms
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.
Treasury Committee Publishes LIBOR Report
On August 18, the Treasury Select Committee (TSC) published its report “Fixing LIBOR: some preliminary findings“. Volume I (Report). Volume II (Oral and Written Evidence).
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.
Steps to Expedite Wind Down of Fannie Mae and Freddie Mac
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.
Guidance to Servicers for Making Home Affordable
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.
FSB Approves Global LEI System
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.
Joint Task Force on HAMP Mortgage Modification Scams
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.
FHFA, Treasury, and HUD Request for Input on Disposition of REO Properties
Final Form SLT
On June 27, Treasury issued final Form SLT, which is designed to gather timely and reliable information on long-term U.S. securities held by non-U.S. residents and long-term non-U.S. securities held by U.S. residents. SLT reporting will being as of September 30, instead of June 30 as originally proposed. Treasury. Form SLT. Instructions to Form SLT.