This week we’re sharing two updates from the regulators. The first about UDAP/UDAAP and the second on Elder Financial Abuse…
OCC Updates Booklet on Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices
On December 3rd, the OCC announced updates and rescissions to their booklet containing information for examiners regarding UDAP and UDAAP. In their announcement, the OCC said that the updated booklet…
- provides further clarity regarding sound risk management practices and guidance to examiners regarding overdraft services.
- incorporates updates from the Consumer Financial Protection Bureau regarding data protection and information security.
- includes an updated version of the “Appendix B: UDAP and UDAAP Risk Indicators.”
- reflects OCC and interagency issuances that have been published or rescinded since June 2020.
- includes other minor updates for general clarity.
You can find the booklet here.
Agencies Issue Statement on Elder Financial Exploitation
On December 4th, five federal financial regulatory agencies, along with the Financial Crimes Enforcement Network (FinCEN), issued a statement to help combat elder financial exploitation.
The agencies outlined practices for banks, credit unions, and other financial institutions to protect older adults, who are vulnerable to losing their savings through exploitation. A FinCEN analysis of reports showed $27 billion in suspicious activity linked to elder abuse.
Key recommendations include developing strong governance policies, training employees, using transaction holds, and filing timely suspicious activity reports. Institutions are also encouraged to report suspected exploitation to law enforcement and collaborate with fraud prevention networks.
You can read the interagency statement here.
If you missed November 22nd’s round-up, check it out here. And if you have any questions about these updates, or any other compliance question, please reach out to us at support@mycomplianceresource.com.