interpretive rule published
The Consumer Financial Protection Bureau has published in the Federal Register an
interpretive rule clarifying that substitution or addition of certain successors-in-interest
as obligors on dwelling-secured consumer credit obligations are not subject to the Bureau's Ability-to-Repay Rule (§ 1026.43
of Regulation Z).
Foreign bank named as money laundering concern
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has named FBME Bank Ltd., formerly known as the Federal Bank of the Middle East, as a foreign financial institution of primary money laundering concern pursuant to Section 311 of the USA PATRIOT Act (Section 311). FBME changed its country of incorporation numerous times, partly due to its inability to adhere to regulatory requirements. It has established itself with a nominal headquarters in Tanzania. However, FBME transacts over 90 percent of its global banking business through branches in Cyprus and FBME has taken active steps to evade oversight by the Cypriot regulatory authorities in the recent past. For more information see FinCENs announcement.