Across the nation many businesses, large and small, are discovering they will have to maintain compliance programs and internal audit protocols for the first time that resemble the sophisticated systems in place at large banks, thanks to examination plans from the Consumer Financial Protection Bureau, a controversial agency brought to life by the Dodd-Frank Act.
As the CFPB, which has survived several legal challenges by business groups and attacks by Republican lawmakers, continues to ramp up, it heads into 2014 with an ambitious agenda. Almost fully staffed for the first time since its creation, the agency expects to normalize its supervision and examination efforts. Non-banks that provide any kind of financial services to consumers are in the crosshairs as the CFPB takes a declared “safety and soundness” approach to their examinations. That means examiners will not only look for improper practices and past violations, but will pursue firms where compliance lapses could lead to a future violation.
