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The Federal Reserve Board has proposed a rule change to stabilize the capital requirements for large financial institutions. The changes would calculate the stress capital buffer requirement by averaging the capital declines from the past two years of stress tests, instead of just one, to reduce volatility. Additionally, the implementation date for the new requirements would be moved from October 1 to January 1, giving firms extra time to comply. These adjustments aim to make capital planning easier and lower regulatory burdens without significantly affecting overall capital demands.

The Board of Governors of the Federal Reserve System has proposed a rule to change how Suspicious Activity Reports (SARs) are filed by certain financial institutions, like state member banks and bank holding companies. The rule aims to allow for exemptions from these requirements to help banks more effectively meet Bank Secrecy Act requirements, potentially leading to innovative ways to tackle financial crime. The Board will coordinate with FinCEN on exemption requests and is seeking public comments on the proposal until February 22, 2021. The proposal emphasizes that these exemptions won't relieve institutions from complying with FinCEN’s SAR regulations.

The Federal Housing Finance Agency (FHFA) has announced an adjustment to the cap on average total assets to determine if a Federal Home Loan Bank member qualifies as a "community financial institution" (CFI). This cap has been set at $1.5 billion, reflecting a 2.7% increase based on changes in the Consumer Price Index for all urban consumers (CPI-U) from November 2023 to November 2024. This adjustment, effective from January 1, 2025, allows CFI status to be determined using unadjusted CPI-U data, as it is less prone to revisions than adjusted data.

The Department of Labor has issued a notice to request public comments on an information collection related to foreign currency transactions involving employee benefit plans. This is conducted under a class exemption that allows certain financial institutions to engage in such transactions with the plans, provided certain conditions are met. The public can submit comments or feedback until April 14, 2025, and the Department aims to ensure the transaction processes protect the interests of plan participants. The collection seeks to gather input on the necessity, accuracy, and impact of the information collection, which is subject to approval by the Office of Management and Budget.

The Securities and Exchange Commission (SEC) is seeking public comments on the extension of an information collection under Regulation S-ID, which aims to safeguard investors against identity theft risks. This regulation mandates SEC-regulated financial institutions and creditors to create programs to detect and address "red flags" of identity theft and communicate with cardholders about address changes. Annually, these entities must assess their accounts and report to their boards, incurring additional costs and time. Comments on this proposal are open until May 27, 2025.

The Board of Governors of the Federal Reserve System has agreed to continue, for three more years, the existing disclosure requirements related to the Consumer Financial Protection Bureau's Regulation DD, without making any changes. These requirements involve financial institutions providing specific account information, including fees and terms, to help consumers make informed decisions when comparing deposit accounts. Though the Board requested public comment on this extension, only one comment was received, which did not pertain to the matter at hand. The Board officially adopted this extension as initially proposed.

The Consumer Financial Protection Bureau (CFPB) has published its 37th edition of Supervisory Highlights, which outlines recent findings from examinations of financial institutions completed in 2024. The report highlights unfair practices in the areas of deposits, such as unauthorized overdraft and non-sufficient funds fees, and issues with credit reporting related to identity theft and dispute investigations. It also discusses problems with short-term lending, including misleading loan terms and denial of credit under unfair conditions. The document emphasizes the importance of accurate information and consumer protection in financial services, noting efforts to correct violations and implement safeguards.

The Community Development Financial Institutions (CDFI) Fund under the Treasury Department has announced the availability of grants for the Native American CDFI Assistance (NACA) Program for the fiscal year 2025. These grants, which include Financial Assistance (FA) and Technical Assistance (TA), are aimed at aiding financial institutions that serve Native American, Alaska Native, and Native Hawaiian populations to enhance their lending capacity. The program aims to strengthen both for-profit and non-profit community-based organizations to support various markets, and the awards are contingent on funding availability. Applicants must meet specific eligibility criteria and complete their submissions through designated platforms by the stated deadlines.

The Office of the Comptroller of the Currency (OCC) is inviting comments on the proposed renewal of an information collection, as required by the Paperwork Reduction Act. This involves a revision of their annual stress test reporting template for financial institutions with assets of $250 billion or more, under the Dodd-Frank Act. The proposed updates aim to align with existing Federal Reserve reporting forms and exclude outdated or unnecessary components. Public comments are encouraged and can be submitted by various methods outlined in the notice until March 7, 2025.

The Financial Crimes Enforcement Network (FinCEN), part of the Treasury Department, has proposed a new rule to prohibit U.S. financial institutions from opening or maintaining correspondent accounts for Huione Group. This is because Huione Group, a Cambodian financial institution, has been identified as a serious risk for money laundering, particularly concerning illicit proceeds from cybercrimes and activities linked to North Korea's operations. U.S. financial institutions must also take special measures to ensure they are not processing transactions that involve Huione Group. The public has 30 days to comment on this proposal.