NACHA Government Relations Update

Posted September, 2 2014

Congress returns September 8 from its August recess with a number of items on the agenda. With few weeks remaining before both chambers leave for the fall campaign, lawmakers have to tackle "must-pass" items such as government funding. Meanwhile, the Federal Reserve Board, the CFPB, and the FDIC have been working on implications of the Dodd-Frank Act and authority outlined in interagency guidance; the Office of the Comptroller of Currency issued updated guidance on third-party organizations and due diligence; and cybersecurity as it relates to consumer payment data is still front and center.

Federal Reserve/FDIC
On August 22, 2014, the Federal Reserve Board issued a press release requesting comment on a proposal to repeal Regulation AA (Unfair or Deceptive Acts or Practices). The Dodd-Frank Act voided the Board's authority to write rules that address unfair or deceptive acts or practices, which are contained in Regulation AA and now under control of the Consumer Financial Protection Bureau. Interagency Guidance was issued by federal financial regulators clarifying the repeal of the credit practices rules applicable to banks, savings associations and federal credit unions. The OCC issued Bulletin 2014-42 and the Federal Deposit Insurance Corporation released FIL-44-2014 to further explain the purpose of the Interagency Guidance.

On August 15, 2014, the Federal Reserve Board and the Federal Deposit Insurance Corporation provided additional guidance on “living wills.” Following review of the initial resolution plans, submitted in December 2013, the agencies provided clarification and direction for their second resolution plans based on the relative size and scope of individual operations. The second plans are due to the agencies on or before December 31, 2014. The agencies also released a tailored resolution plan template, which focuses on the operations and interdependencies between nonbanking and banking activities.

On August 20, 2014, the Office of the Comptroller of Currency issued Bulletin 2014-41 replacing the "Merchant Processing" booklet of the Comptroller's Handbook. The new booklet includes updated guidance on third-party organizations and due diligence, technology service providers, audits and attestation engagements. The new booklet provides risk mitigation updates to data security standards in the payment card industry for merchants and processors, as well as, modernizes compliance programs concerning the Bank Secrecy Act/Anti-Money Laundering policies, procedures and processes to identify unusual activity.

Consumer Financial Protection Bureau (CFPB)
On August 22, 2014, the CFPB finalized revisions to the remittance rule that it had proposed in April, which extended by five years an exception under the Dodd-Frank Act that allows federally-insured financial institutions to estimate third-party fees and exchange rates when providing remittance transfers to account holders. Additionally, the CFPB released a revised version of its compliance guide outlining the impact of the finalized rule.

On August 18, 2014, CFPB Director Richard Cordray delivered remarks to the Association of Military Banks of America, which discussed the importance of community banks and the role they play in the lives of service members.

On July 31, 2014, the National Cybersecurity and Communications Integration Center, the Secret Service and third-party partners issued Alert (TA14-212A) concerning “Backoff” malware. The information was provided to divert exploiting of consumer payment data compromised by PoS attacks, which exposed credit/debit card numbers.

Legislative Tool Kit
House 2014 Calendar (in the right-hand bar)
Senate 2014 Calendar (in the right-hand bar)​​
Current Legislation & Federal Resource Center 
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