- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-12-07T16:43:00
New guidance from the Treasury Department’s Office of the Comptroller of the Currency (OCC) advises banks to tailor their risk management strategies and lending oversight for “buy now, pay later” (BNPL) plans.
The OCC’s bulletin, released Wednesday, addressed risks posed by BNPL loans payable in four or fewer installments and carrying no finance charges. Loans with payment terms greater than four installments or that charge interest or carry other finance charges are considered by the OCC to be traditional and are not within the scope of the guidance.
The agency said BNPL loans are popular with tech-savvy customers and those with little or no credit history and are often associated with online purchases.
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The Office of the Comptroller of the Currency proposed eliminating expedited or streamlined reviews of mergers for national banks and federal savings associations.
Artificial intelligence was highlighted as an emerging risk to the federal banking system as part of the Office of the Comptroller of the Currency’s latest semiannual risk perspective.
Bank examiners from the Office of the Comptroller of the Currency are focusing their supervision attention on how banks manage risks that brought down three mid-sized financial institutions earlier this year.
Financial institutions holding Russian sovereign assets that have not reported them to the Treasury Department’s Office of Foreign Assets Control are now required to do so by Aug. 2.
Compliance officers should take note of proposed laws in the U.K. with the newly elected Labor government setting the legislative agenda in the King’s Speech last week, promising consultations on enhanced employee rights and a higher minimum wage.
Four federal banking regulators have joined the Treasury Department’s Financial Crimes Enforcement Network in issuing a notice of proposed rulemaking that would require financial institutions to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs.
