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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, December 8, 2022

December 08, 2022

FedACTion Task Force

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PH Fintech Tracker on Executive Order for Digital Assets

Congress

U.S. House of Representatives

Committee on Financial Services

Committee Secures Key Provisions in 2023 National Defense and Authorization Act

December 7, 2022

Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, announced that the Committee successfully secured key provisions in the latest text of the National Defense Authorization Act (NDAA) for Fiscal Year 2023. The following provisions have been included in Division E (Non-Department of Defense Matters) in the latest version of the NDAA package:

  • Section 5701 directs the U.S. Department of the Treasury (Treasury) to vote against the provision of any assistance to China from the World Bank or the Asian Development Bank unless the Secretary of Treasury has certified that China has demonstrated a commitment to participate in multilateral debt relief initiatives on terms comparable to other G-20 governments; allows borrowing countries to seek restructuring of China loans in official multilateral debt treatment forums; and allows for the public disclosure of the terms and conditions of its loans to other countries; or if the Secretary of Treasury certifies that such assistance serves the national interest of the United States.
  • Section 5702 provides support for international initiatives to provide debt relief to developing countries with unsustainable levels of debt.
  • Section 5703 directs Treasury to use the voice, vote, and influence of the U.S. at the IMF, the World Bank, and other relevant multilateral development banks to advocate for the immediate suspension of all debt service payments owed to these institutions by Ukraine. It further directs the Secretary of Treasury, in coordination with the Secretary of State, to commence immediate efforts with other official bilateral creditors and commercial creditor groups to pursue similar comprehensive debt payment relief for Ukraine.
  • Section 5704 requires Treasury, the Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System (Federal Reserve) to take all necessary steps to exclude Russian government officials from certain international economic and financial regulatory meetings until Russia has ceased its invasion of Ukraine.
  • Section 5705 expands employment opportunities at federally insured depository institutions by reducing barriers to employment based on past minor criminal offenses.
  • Section 5706 requires Treasury to report semiannually on financial services provided to benefit a state sponsor of terrorism or specified sanctioned persons.
  • Section 5708 requires the Federal Reserve to create and maintain a public, online, searchable database of institutions that have access to a Federal Reserve Bank master account and services as well as entities that have requested access to such Federal Reserve Bank master account and services. The database would be required to be updated quarterly and include the status of any pending request for access.
  • Section 5590 closes a loophole in existing restrictions on Russia by imposing secondary sanctions to anyone transacting with or transporting gold from Russia's Central Bank holdings or selling gold physically or electronically in Russia. It also directs Treasury to develop clear compliance guidelines for U.S. citizens to ensure that Americans avoid unknowingly investing in or transacting with Russian gold.
  • Title LVIII requires federal financial regulatory agencies to adopt data standards with respect to format, searchability, and transparency. Data would be made publicly available in an open-source format that is electronically searchable and without license restrictions.
  • Press Release

Hearing: An Enduring Legacy: The Role of Financial Institutions in the Horrors of Slavery and the Need for Atonement, Part Two

December 7, 2022

The U.S. House Committee on Financial Services held a hearing entitled, "An Enduring Legacy: The Role of Financial Institutions in the Horrors of Slavery and the Need for Atonement, Part Two."

Federal Agencies

Securities and Exchange Commission

SEC Reopens Comment Period for Proposed Rule on Share Repurchase Disclosure Modernization

December 7, 2022

The Securities and Exchange Commission reopened the comment period on proposed amendments intended to modernize and improve the disclosure required about an issuer's repurchases of its equity securities, often referred to as buybacks.

Consumer Financial Protection Bureau

CFPB Finds Members of the Reserves and National Guard Paying Millions of Dollars in Extra Interest Each Year

December 7, 2022

The Consumer Financial Protection Bureau released research revealing that Reserve and National Guard members called to active duty are paying an extra $9 million in interest every year because they are not always receiving the benefit of their right to rate reductions under the Servicemembers Civil Relief Act.

Blog: Update on state laws on lending to businesses

December 7, 2022

The Consumer Financial Protection Bureau published a blog post entitled, "Update on state laws on lending to businesses."

Financial Crimes Enforcement Network

Annual FinCEN Program Recognizes Law Enforcement Cases Supported by BSA Data

December 7, 2022

The Financial Crimes Enforcement Network (FinCEN) held its annual ceremony earlier this month to honor the recipients of the FinCEN Director's Law Enforcement Awards for 2022.

Prepared Remarks of FinCEN Acting Director Himamauli Das During the ABA/ABA Financial Crimes Enforcement Conference

December 6, 2022

FinCEN Acting Director Himamauli Das gave remarks during the ABA/ABA Financial Crimes Enforcement Conference.

International

European Commission

Capital Markets Union: new proposals on clearing, corporate insolvency and company listing to make EU capital markets more attractive

December 7, 2022

The European Commission has put forward measures to further develop the EU's Capital Markets Union.

Press statement by President von der Leyen on the ninth package of sanctions against Russia

December 7, 2022

European Commission President Ursula von der Leyen issued a statement on the ninth package of sanctions against Russia.

Bank of England

Speech: Implementing Basel 3.1 in the UK

December 7, 2022

Phil Evans gave a speech entitled, "Implementing Basel 3.1 in the UK."

UK Financial Conduct Authority

FCA sets out how mortgage firms should be supporting borrowers

December 7, 2022

The UK Financial Conduct Authority has published guidance setting out options firms can use to support their customers to manage their monthly mortgage payments, alongside new information for borrowers affected by rising prices.

Administration Changes

Vacancies

Federal Deposit Insurance Corporation

  • Chair – Vacant (Martin Gruenberg serves as Acting Chair and was nominated to serve as Chair November 14, 2022).
  • Vice Chairman – Travis Hill (nominated September 20, 2022)
  • Member – Jonathan McKernan (nominated September 20, 2022)

Office of the Comptroller of the Currency

  • Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)

Appointments/Confirmation Hearings

U.S. Department of the Treasury – Janet Yellen (effective January 26, 2021)

Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Deposit Insurance Corporation – Martin Gruenberg (Acting Chair, appointed February 5, 2022)

Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)

Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)

Small Business Administration – Isabella Casillas Guzman (effective March 16, 2021)

Commodity Futures Trade Commission – Rostin Behnam (effective December 17, 2021)

Financial Crimes Enforcement Network

National Credit Union Administration – Todd M. Harper

U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Federal Housing Finance Agency – Sandra L. Thompson, (confirmed May 25, 2022)

U.S. Department of Education – Dr. Miguel Cardona (effective March 2, 2021)

PH Client Alerts

Click here to read more from our Coronavirus series.

Legislation/Legislative Updates

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.