ABA Risk and Compliance
 
 
 
 
February 14, 2025
Features
The Federal Reserve has released the hypothetical scenarios for its annual stress test, which is designed to ensure that large banks can lend to households and businesses even in a severe recession. The Fed also released two hypothetical elements designed to probe different risks through its "exploratory analysis" of the banking system. The exploratory analysis will not affect bank capital requirements.
A new survey by Webster Bank found that roughly half of C-suite executives polled said their businesses lost $10,000 to $500,000 to cyber fraud in the past two years, with another 11% reporting losses exceeding $1 million.
360factors, Inc
Orion
Questions in this edition address the one-year rule for merged banks, as well as understanding a practical application of the Americans With Disabilities Act.
A recent study of 2,000 U.S. and U.K. residents found that the vast majority of participants couldn’t distinguish between real content and deepfake images and video. In research conducted by the biometric identity verification provider iProov, only 0.1% identified all deepfake and real media presented to them, even after they were told some of the media would be fake.
Ncontracts Launches Nstitute: An Online Training Program to Earn Nstitute Certified Vendor Management Professional (NCVMP) Certification
Ncontracts®
Ncontracts, launched an online training program “Nstitute Certified Vendor Management Professional (NCVMP)" certification based on the new interagency guidance on 3rd party risk management. Nstitute is a self-paced, training program that covers essential areas of third-party risk management to empower vendor managers and professionals tasked with overseeing third-party vendors, consultants, fintechs, and others. Ncontracts is currently offering an exclusive 30% discount. 
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As policymakers develop a regulatory framework for digital assets, they should apply the principle of "same activity, same risk, same regulation" and ensure the resulting ecosystem operates with safeguards that appropriately mitigate financial stability and consumer protection risk, the ABA told House lawmakers.
President Trump confirmed that he plans to close down the Consumer Financial Protection Bureau, which he said "was set up to destroy some very good people." CFPB staff were ordered to cease all activities and stay home as their bureau’s offices in Washington, D.C., would be closed this week.
Republicans on the Senate Banking Committee blasted regulators for allegedly pressuring banks to cut off services to certain customers while Democrats said overdraft and other bank fees were driving people away from banking.
Shield Compliance
Protecht Group
The ABA has endorsed bipartisan legislation to extend the Corporate Transparency Act’s beneficial ownership information reporting deadline by one year until Jan. 1, 2026. The House voted 408-0 in favor of the bill.
Bank regulators have been "frustratingly slow" in advancing their efforts to fight fraud, "and seem to have done little to address the underlying root causes of this increase in fraud," Federal Reserve Governor Michelle Bowman said in a speech to the Kansas Bankers Association.
Federal Reserve Chairman Jerome Powell today said there was "less volatility" on the Fed board before the creation of a vice chairman for supervision, and that volatility is not helpful for the financial institutions it regulates.
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Training

February 20
Webinar: Bank Fraud Forecast

February 26
Webinar: Fourth-Party Risk Management Considerations

February 27
Webinar: Bridging Regional Insights and National Lending Surveys

March 17 - 20
School: Compliance School – Intermediate
Emory Conference Center Hotel, Atlanta, GA

March 17 - 21
School: Compliance School – Foundational
Emory Conference Center Hotel, Atlanta, GA

March 17 - 21
School: AML and Fraud School
Emory Conference Center Hotel, Atlanta, GA

March 19
Webinar: Identifying Money Mule Accounts