TOP OF THE AGENDA
American Bar Association Opposes Anti-Money Laundering Efforts. Objection!
Last week, the American Bar Association released a letter opposing H.R. 2513, the Corporate Transparency Act (Maloney D-NY), a bipartisan proposal that would end the creation of anonymous shell companies, which are routinely used to facilitate money laundering, terrorist financing and other criminal activities. H.R. 2513 is strongly supported by a wide and diverse variety of groups, including from the Fraternal Order of Police to the FACT Coalition. These supporters recognize that the bill would impose minimal requirements on businesses yet provide law enforcement and national security officials an important and much-needed tool to track criminals and their activities. BPI responded to some of the factual inaccuracies and misleading statements.
5 Stories Driving the Week
1. CAP IS WRONG ABOUT NEW REGULATORY REFORMS
In Case You Missed It
In an op-ed, J.W. Verret describes why the initial justifications for the Federal Reserve to be involved in the payments services no longer hold. He writes that the Fed’s involvement is delaying arrival of real-time payments and impeding innovations across the U.S. payments system.
On May 14, BITS, the technology policy division of the Bank Policy Institute, published the BITS Cloud Access Security Brokers (CASB) Use Case Matrix. CASBs are an emerging technology that assist financial services firms in managing cloud computing cyber risk to protect customer data and other sensitive assets. The BITS CASB Matrix tool offers a granular set of diagnostic questions to help firms match business requirements to service provider capabilities to ultimately mitigate enterprise risk across sanctioned and unsanctioned cloud applications.
On May 10, 15 senators sent a letter asking the Federal Reserve Board and Federal Deposit Insurance Corporation to delay implementation of the current expected credit losses (CECL) accounting standard until after the completion of a study analyzing how the new rules could impact lending.
In a May 14 quarterly report on “Household Debt and Credit,” the Federal Reserve Bank of New York examines the prevalence of various loan types over time, finding that Americans’ credit card participation rate has climbed to 60% following a sharp reduction—particularly for younger borrowers—in the wake of the financial crisis and the CARD Act of 2009. The report also finds that mortgage prevalence, tracking the housing cycle, has been declining since its peak in 2006, while student loans spiked both in participation and balances following the financial crisis and have been steadily growing throughout the covered period.
5/20/2019 — Powell Speech at Atlanta Federal Reserve Conference
5/20/2019 — Fed’s Clarida “Fed Listens” Monetary Policy Speech
5/21/2019 — Senate Banking Committee Holds Hearing on Shell Companies
5/21/2019 — House Financial Services Holds HUD Oversight Hearing
5/22/2019 — Mnuchin Returns to House Financial Services Testimony