compliance monthly

August 2015
Compliance Monthly is intended to keep you informed of regulatory changes in advance of their effective
date so your institution can have the necessary policies, procedures and processes in place to be compliant
at the time of enactment.
Finalized Rules:

Defense department publishes final

military lending act rule
The Defense Department published a final rule
tightening restrictions on lending to service members.
The rule expands the restrictions in the Military
Lending Act ( MLA), which principally targeted tax
refund anticipation loans, payday loans and car title
loans, to cover credit cards, lines of credit, installment
loans and deposit advances offered to service
members. The implementing regulation provides
several significant protections extended to active
duty service members and their families, including:

A 36 percent Military Annual Percentage Rate
limit. This cap, which is also referred to as the MAPR,
covers all interest and fees associated with the loan.
This limit now includes charges for most ancillary
add-on products such as credit default insurance
and debt suspension plans.

The MLA prohibits creditors from requiring
service members to: submit to mandatory arbitration
and onerous legal notice requirements; waive
their rights under the Servicemembers Civil Relief
Act; provide a payroll allotment as a condition of
obtaining credit (other than from relief societies);
be able to refinance a payday loan; or be able to
secure credit using a post-dated check, access to a
bank account (other than at an interest rate of less
than 36 percent MAPR), or a car title (other than with
a bank, savings association or credit union).

The changes to definitions of credit in the final
rule bring any closed or open-end loan within the
scope of the regulation, except for loans secured by
real estate or a purchase-money loan, including a
loan to finance the purchase of a vehicle.

The final rule is effective October 1, 2015, but

required compliance will be phased in beginning
October 3, 2016.
Proposed Rules:
None.
Other Compliance News:

ffiec cybeRSECUrITY TOOL

The Federal Financial Institutions Examination
Council (FFIEC) on behalf of its members, has issued
a Cybersecurity Assessment Tool (Assessment)
that institutions may use to evaluate their risks and
cybersecurity preparedness. The OCC has issued
Bulletin 2015-31 regarding the Assessment. While
use of the Assessment is optional for financial
institutions, OCC examiners will use the Assessment
to supplement exam work to gain a more complete
understanding of an institutions inherent risk, risk
management practices and controls related to
cybersecurity. The OCC examiners will gradually
incorporate the Assessment into examinations of
national banks, federal savings associations and
federal branches and agencies (collectively, banks)
of all sizes late in 2015. The Assessment is based on a
2014 pilot cybersecurity assessment of more than 500
financial institutions.
The Assessment helps banks and examiners
determine a banks inherent risk profile and level
of cybersecurity preparedness. The Assessment
includes a profile of inherent risks that is keyed to the
characteristics of individual financial institutions, such
as technology profile, product lines and size.

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Compliance Monthly
August 2015

This is followed by a self-assessment template for

five dimensions of cybersecurity maturity and tips
for evaluating and interpreting results. It also maps
the maturity levels to the voluntary cybersecurity
benchmarks developed by the National Institute
of Standards and Technology. The results may
be reviewed to determine whether the banks
cybersecurity maturity levels align with the banks
inherent risk profile. In addition to the Assessment, the
FFIEC has also made available resources institutions
may find useful, including an executive overview,
a users guide, an online presentation explaining
the Assessment, and appendixes mapping the
Assessments baseline items to the FFIEC Information
Technology (IT) Examination Handbook and to the
National Institute of Standards and Technologys (NIST)
Cybersecurity Framework

Copyright 2015 Accume Partners, All rights reserved.

Information contained in Compliance Monthly is not intended to
provide specific advice and guidance. You should consult your own
professional services provider in connection with matters affecting
your own interests.

New Exam Procedures on TRID Issued

FIL-27-2015 has been issued by the FDIC to announce
the release of revised interagency examination
procedures for the TILA-RESPA integrated disclosures
now proposed to take effect on October 3. The
procedures also include updates related to the CFPBs
ability-to-repay, servicing and high-priced mortgage
loan rules

FinCEN Issues International AML/CFT

Advisory
FinCEN has issued FIN-2015-A002, an advisory on
the Financial Action Task Force (FATF) update of
the list of jurisdictions with strategic AML/CFT (AntiMoney Laundering and Counter-Terrorism Financing)
deficiencies. Financial institutions should consider
these changes when reviewing their enhanced
due diligence obligations and risk-based policies,
procedures, and practices with respect to the
jurisdictions identified by the FATF.

accumepartners.com

1.888.696.1515 accumepartners.com

Compliance Monthly
August 2015

about accume partners

Accume Partners provides the financial industry with regulatory compliance, internal audit, technology
and enterprise risk management services. Through these key areas of focus, Accume is able to remain at
the forefront of changing needs and regulations of its clients, bring balanced perspectives and the specialized
knowledge necessary to serve todays banks and financial institutions.

To learn more, please visit our website at accumepartners.com.

For more information, please call or e-mail any of these Accume Partners contacts:
Steven Peck
Managing Director, Compliance
610.803.1617
speck@accumepartners.com

David Smith
Director, Compliance
570.606.7423
dlsmith@accumepartners.com

James Nemecek
Director, Compliance
215.565.6576
jnemecek@accumepartners.com

Mark Lindig
Chief Executive Officer
646.476.1961
mlindig@accumepartners.com

Paul Nobbs
Managing Director, NJ Banking
and Financial Services
609.332.7132
pnobbs@accumepartners.com

Nicole Lloyd
Managing Director, Mid-Atlantic
717.903.3142
nlloyd@accumepartners.com

Glenn Hoffman
Managing Director, Technology
Risk Management
203.803.7345
ghoffman@accumepartners.com

K.D. Mehra
Managing Director, NY Banking
347.576.5652
kmehra@accumepartners.com

1.888.696.1515 accumepartners.com
Copyright 2015 Accume Partners, All rights reserved.