Summaries of Compliance Regulations
Administrative Compliance Summaries
The Americans with Disabilities Act (ADA) prohibits discrimination against people with disabilities in employment, transportation, public accommodation, communication, and governmental activities. ADA also established requirements for telecommunications relay services. Learn more here.
The Electronic Signatures in Global and National Commerce Act (E-SIGN Act) was signed into law in June 2000. The substantive provision became effective in October 2000, and the record retention requirements became effective in March 2001. The E-SIGN Act grandfathered existing agreements between a consumer and an institution to deliver information electronically. All agreements made on or after October 1, 2000, are subject to E-SIGN Act’s requirements. Learn more here.
Regulation P governs how banks treat nonpublic personal information of consumers. The rule requires banks to provide a notice to its customers about the banks’ privacy policies and procedures. Learn more here.
Regulation BB implements the Community Reinvestment Act (CRA). CRA requires financial institutions to help meet the credit needs of the local communities in which the financial institutions are located. Learn more here.
The Right to Financial Privacy Act (RFPA) was enacted in 1978 and deals with the disclosure of customer information by financial institutions. The RFPA requires that:
- Customers receive notice before financial institutions disclose the customers’ financial records to the government;
- Customers have a right to challenge release of their financial records to the government; and
- Government agencies show records of compliance with the RFPA.
The RFPA covers requests for financial records received from the federal government and its officers, agents, agencies, and department. It does not cover requests for financial records made by private businesses, state, or local governments. Learn more here.
The Telephone Consumer Protection Act (TCPA) is a federal statute that restricts the use of automatic telephone dialing systems, texts and faxes sent by telemarketers and other entities. TCPA is implemented by regulations promulgated by the Federal Communications Commission (FCC). Learn more here.
UDAAP prohibits any acts or practices that are either unfair, deceptive, or abusive to consumers. The potential applications of UDAAP are many – overdraft protection programs, TRID/RESPA disclosures, fees of any kind, debit cards practices and pricing, and many more. Learn more here.
BSA/AML Compliance Summaries
To combat financial crimes and disrupt terrorist financing, the Bank Secrecy Act establishes program, recordkeeping and reporting requirements for financial institutions. Learn more here.
The Office of Foreign Assets Controls, part of the United States Department of the Treasury, administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, individuals, entities, and practices. Learn more here.
The USA PATRIOT Act amended the BSA and required banks to establish customer identification programs. It also requires financial institutions to share information with law enforcement agencies under section 314(a) and allows financial institutions to share information with each other under section 314(b). Learn more here.
Section 311 of the USA PATRIOT Act authorizes the Secretary of the Treasury to require financial institutions to take certain special measures against foreign jurisdictions, foreign financial institutions, transactions, and accounts. Section 311 is implemented through a variety of orders and regulations. Learn more here.
Deposit/Operations Compliance Summaries
Garnishment of Account Containing Federal Benefit Payments is a Federal interagency regulation that protects certain funds from garnishment. Financial institutions must follow this regulation when they receive garnishment orders against account holders who receive certain Federal benefit payments in their accounts. Learn more here.
Regulation CC implements the Expedited Funds Availability Act and the Check Clearing Act. The Act standardizes hold periods on deposits, regulates the use of deposit holds, requires disclosure of funds availability policies to customer, and establishes rules designed to speed the collection and return of unpaid checks. Learn more here.
Regulation DD implements the Truth in Savings Act, which requires banks to provide consumers with disclosure upon opening of depository accounts. The disclosures allow consumers to make informed decisions and assist in comparison shopping based on fees, annual percentage yield, interest rate, and other deposit account terms. Learn more here.
Regulation GG implements the Unlawful Internet Gambling Enforcement Act (UIGEA), which “prohibits any person engaged in the business of betting or wagering (as defined in the Act) from knowingly accepting payments in connection with the participation of another person in unlawful internet gambling.” Financial institutions must have a screening process at the time of account opening and deny certain commercial entities access to the payments system. Learn more here.
Lending Compliance Summaries
The Fair Housing Act prohibits discrimination in all aspects of residential real-estate related transactions (e.g. purchase loans, loans to buy, build, repair or improve a dwelling, and selling or renting a dwelling). Learn more here.
The Flood Disaster Protection Act makes the purchase of flood insurance mandatory for the protection of property located in Special Flood Hazard Areas. Learn more here.
The Military Lending Act prohibits financial institutions from charging an interest rate higher than 36% on certain consumer credit and provides covered borrowers with additional protections. Most recent amendment to MLA brought the definition of consumer credit in line with the Truth in Lending Act and its implementing Regulation Z, which allows the MLA requirements to apply to a wider range of credit products. Learn more here.
Regulation B implements the Equal Credit Opportunity Act, which prohibits creditors from discriminating against applicants based on prohibited basis. Regulation B also sets a variety of additional requirements financial institutions must follow. Learn more here.
The Home Mortgage Disclosure Act, implemented by Regulation C, requires creditors to collect certain information from applicants who apply for home purchase, refinance, or home improvement loans, and to periodically report the collected information. Learn more here. New HMDA requirements become effective January 1, 2018.
The Fair Debt Collection Practices Act set the rules for third party debt collectors. Learn more here.
The S.A.F.E. Mortgage Licensing Act mandates licensing and registration system for residential mortgage loan originators. All registration must take place through the Nationwide Mortgage Licensing System and Registry. Learn more here.
The Consumer Leasing Act requires financial institutions to provide disclosures of lease terms to consumers. The Act applies to consumer leases of personal property. Learn more here.
Regulation O governs loans made to executive officers, directors, and principal shareholders of member banks and its affiliates. Learn more here.
Fair Credit Reporting Act regulates the consumer-reporting industry, prohibits unfair actions by credit reporting agencies, and restricts the availability and use of consumer reports. Learn more here.
RESPA, as implemented by Regulation X, requires lenders to provide borrowers with disclosures addressing the nature and costs of the real estate settlement process. Although the TILA-RESPA amendments narrowed the need for the Good Faith Estimate disclosure, the GFE is still required for some transactions. Learn more here.
The fundamental tenet of Regulation Z, which implements the Truth in Lending Act, requires financial institutions to provide borrowers with certain disclosures of credit terms. Learn more here.