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          Enforcement Network                                    be reported in the year of enactment, which is 2017. It also
          in      coordination                                   includes guidance on Regulation 8K disclosure requirements.
          with   the   Justice                                   It  is  believed that the  SEC  guidance  also  effectively sets
          Department,  remains                                   the framework for expectations by the banking agencies in
          in force for the time                                  examining non-SEC registrants.
                                                                 To read more visit:
          Sessions’ memo noted                                   release/2017-237
          that      cultivating,                                 To read the staff bulletin visit:
          distributing and possessing marijuana remains a federal crime   account/staff-accounting-bulletin-118.htm
          under the Controlled Substances Act. “These activities also
          may serve as the basis for the prosecution of other crimes,
          such as those prohibited by the money laundering statutes, the   CFPB: Cost, Availability of
          unlicensed money transmitter statute, and the Bank Secrecy   Credit Cards Remain Stable
          Act,” he said. “These statutes reflect Congress’s determination
          that marijuana is a dangerous drug and that marijuana activity   The cost of credit in the
          is a serious crime.”                                   credit card market has
                                                                 held steady since 2015,
          Sessions noted that U.S. attorneys continue to have discretion   though interest rates have
          on law enforcement in their districts, stating that previous   risen as market rates have
          nationwide guidance issued by the Obama-era Justice    increased, according to a
          Department was unnecessary. The previous guidance came in   new, 350-page study from
          a series of memos in recent years as several states have moved   the CFPB. The total amounts of credit lines and the number
          to liberalize their laws on medicinal or recreational marijuana   of new card originations increased during that timeframe, but
          use and sales. Prior DOJ guidance urged U. S. attorneys to   remain well below pre-crisis highs, the study noted. The average
          consider whether investigation and prosecution of activities   credit card debt increased 9 percent over the last two years.
          legal under state law was the best use of limited resources and   Delinquencies and chargeoffs ticked up slightly, though they
          directed federal prosecutors to focus on specific crimes related   also remained well below pre-recession highs.
          to  marijuana,  such  as  distribution  to  minors,  trafficking  of
          other illegal drugs or firearms via marijuana distribution and   The study also found that cardholders today are averaging fewer
          drugged driving.                                       credit cards than they were in the pre-crisis years and that non-
                                                                 prime borrowers are relying more on private label cards and
          To read the memo visit:  secured cards, which require a cash deposit. The issuance of
          release/file/1022196/download                          secured cards ticked up 7 percent in 2016.  The CFPB also noted
                                                                 that rewards programs are becoming more popular among
          SEC Issues Guidance on                                 credit card users, and more broadly adopted by card issuers.
          Accounting for Tax Reform                              To read the report visit:
          The Securities and Exchange                            pdf
          Commission  has  issued  a  staff
          bulletin and related guidance
          regarding accounting for the tax                       Fed Survey: Small Banks Vital
          reform bill that was signed into law.                  Source of Credit for Rural
          Addressing several key financial                       Businesses
          reporting issues expressed to the
          commission, the guidance recognizes                    Small businesses located in rural areas are more likely to apply
          the challenges associated with the timing and complexity of the   to a small financial institution for credit, according to a recent
          calculations required by the enactment of tax reform. It also   survey conducted by several Federal Reserve Banks. Sixty-two
          recognizes that estimates are required and that there may be a   percent of rural businesses applied to small banks for credit,
          need for adjustments when information becomes available.   while 43 percent of urban businesses did. Sixty-six percent of
                                                                 rural business owners said that having an existing relationship
          The guidance generally provides a one-year period for making   with a lender was a key factor in deciding where to apply for
          refinements to estimates, but notes that if actual or reasonable   financing.
          estimations of tax reform effects are available, they should

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