Page 4 - September 26, Bulletin

BANKING
ARTICLES

FinCEN Creates Toolkit to Help CFPB Releases FAQ on Regulation
Small Businesses with CTA of Buy Now, Pay Later Products
Compliance The Consumer Financial Protection Bureau has released an FAQ

The Treasury Department’s Financial Crimes Enforcement about applying Truth in Lending regulation to buy now, pay later
Network has created a toolkit to familiarize small-business owners products. The bureau in May issued an interpretive rule defining
with beneficial ownership reporting requirements. The reporting lenders who provide BNPL products as credit card providers
requirements are mandated by the Corporate Transparency Act, under the Truth in Lending Act and its implementing regulation,
which was enacted to help curb illicit finance by supporting law Regulation Z. Among other things, the rule requires BNPL lenders
enforcement efforts. This law requires many small businesses to to provide consumers with options currently available to credit card
report basic information to the federal government about the people holders, such as the ability to dispute merchant charges through the
who own or control them. creditor.
The toolkit contains templates and sample content to allow The FAQs provide guidance on applying Regulation Z to BNPL
private, public and nonprofit organizations to share and amplify products, such as how to apply credit card periodic statement
this information. The toolkit includes general background on the requirements to pay-in-four BNPL products that are accessed by
reporting requirements, as well as templates for newsletters, websites digital user accounts, according to the CFPB.
and emails; sample social media posts and images; and information Read more: https://www.consumerfinance.gov/compliance/
on how to contact FinCEN. compliance-resources/consumer-cards-resources/buy-now-pay-
later-bnpl-products/
FinCEN has issued guidance, FAQs, videos and other materials to
ease compliance efforts. Companies that existed before 2024 have
until Jan. 1, 2025, to file, while companies created or registered FDIC May Seek Additional
in 2024 must file within 90 days of receiving creation/registration Information for Bank
notice. Acquisitions by Credit Unions

Read more: https://www.fincen.gov/boi/toolkit
In a new bank merger policy statement approved by the FDIC,
Elder Financial Exploitation: the agency said that credit unions may need to provide additional
information when applying to acquire an FDIC-insured institution
Confronting a Chronic Challenge as credit unions are not subject to the Community Reinvestment
Act.
Banks are collaborating, using technology and taking other steps
to protect a vulnerable population. The Federal Trade Commission In the policy statement, the FDIC acknowledged that several
estimates consumers lose as much as $48.4 billion annually to elder commentators raised the issue. The agency rejected a request for a
finance exploitation, while AARP’s research indicates that losses per special analysis of the competitive effects of bank acquisitions by
person average $120,000. credit unions. However, it included language to consider the effects
of nonbank competitors like credit unions when weighing merger
Read more: https://bankingjournal.aba.com/2024/09/elder-
financial-exploitation-confronting-a-chronic-challenge/ applications.

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