Regulations & Policy
Banks can question customer activity without disclosing SARs
The Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Financial Crimes Enforcement Network issued a joint statement on Wednesday clarifying that financial institutions, when investigating fraud, may communicate with customers about suspicious transactions without disclosing the existence of suspicious activity reports (SARs), and may inform them of account restrictions or closures, or denial of deposits. The statement responded to concerns raised by industry feedback in June 2025 but did not change the legal provisions of the Bank Secrecy Act regarding SAR confidentiality.
TD pushes US branch expansion amid AML reform
Allison Robinson, head of U.S. retail distribution at TD Bank, said Wednesday that the goal of opening 100 U.S. branches by 2028 is a "strategy for the present," not a simple restart of the 2023 expansion plan. The bank announced last week plans to open 100 new branches in the United States by the end of 2028 and hire additional retail and commercial banking staff. Despite regulatory constraints such as asset caps, bank executives remain optimistic about growth prospects.
Republicans unveil bill to change CFPB funding structure
Republican lawmakers on the U.S. House Financial Services Committee introduced a bill on Tuesday aimed at changing the existing funding structure of the Consumer Financial Protection Bureau (CFPB), shifting its funding source from the Federal Reserve to the congressional annual appropriations process. The bill is led by Republican Representative Andy Barr and co-sponsored by 29 Republicans, including Committee Chairman French Hill. The bill also proposes to tighten CFPB's enforcement standards for unfair, deceptive, or abusive acts or practices (UDAAP), require cost-benefit analysis for rulemaking, and establish a dedicated CFPB inspector general.
SVB ex-parent not entitled to $1.7B from FDIC
U.S. Federal Judge Beth Labson Freeman ruled that Silicon Valley Bank's former parent company, SVB Financial Group, has no right to reclaim $1.7 billion from the FDIC because executives, including CFO Daniel Beck and Treasurer Michael Kruse, breached their fiduciary duties, exposing the bank to excessive interest rate and liquidity risks. This ruling is the latest development in the legal disputes related to SVB's collapse in March 2023.
Warsh furthers his push toward a ‘quieter Fed’
On the occasion of completing 100 days at the helm of the Federal Reserve, Chair Kevin Warsh again articulated his 'quieter Fed' approach at the Jackson Hole annual symposium: downplaying forward guidance, strengthening inflation governance, and urging market participants to independently assess economic data. He also acknowledged that the central bank's understanding of new variables such as artificial intelligence and token prices remains limited.
OCC, FDIC cement drill-down on ‘material financial risks’
The OCC and FDIC jointly issued final rules on Thursday, providing for the first time a formal definition of 'unsafe or unsound practices' and unifying the timing and standards for issuing 'Matters Requiring Attention' (MRA). This move aims to shift regulatory and enforcement focus toward risks that could cause material harm to an institution's financial soundness or the deposit insurance fund, rather than non-financial matters such as processes or documentation. FDIC Chairman Travis Hill stated that the rule will guide examiners to focus on issues with significant financial impact, and that most existing supervisory criticisms that do not meet the new standards have been closed or are in the process of being closed. On the same day, the OCC revised its enforcement and MRA policy manuals and separately proposed a draft rule distinguishing 'material violations' from 'technical violations.' The American Bankers Association (ABA) welcomed the move, stating it will enhance certainty in examinations and supervision; however, Democrats such as Senator Elizabeth Warren and scholar Jeremy Kress criticized that the rule may 'disarm examiners' and weaken early risk intervention capabilities.
Trump lawyers blast Capital One’s AML narrative in account closures
Trump's legal team on Friday accused Capital One of deciding to close accounts linked to the president without sufficient evidence, calling its anti-money laundering investigation a 'political pretext.' The lawyers asked the court to reject the bank's motion to dismiss the lawsuit and to disclose internal emails showing the bank reached conclusions before seeking evidence.
Brazil's Itau Unibanco Receives Conditional Approval from U.S. Office of the Comptroller of the Currency to Establish U.S. Branch
The U.S. Office of the Comptroller of the Currency (OCC) issued a conditional approval letter to Brazil's Itau Unibanco on August 14, allowing it to establish a subsidiary in the United States. The bank plans to operate as a single branch in Miami with initial capital of at least $507 million and must meet multiple regulatory conditions.
