Regulatory Alerts2012-08-13
Compliance Obligations of Certain Loan or Finance Company Affiliates of Federally Regulated Banks and Other Financial Institutions
The Financial Crimes Enforcement Network issued this ruling to clarify that loan or finance company subsidiaries of federally regulated banks are deemed to comply with FinCEN's regulations at 31 CFR 1029 if they are subject to the same anti-money laundering and suspicious activity reporting requirements as their parent institution. This determination prevents redundant and duplicative regulatory burdens by recognizing that these subsidiaries are already examined by the parent financial institution's Federal functional regulator. The ruling specifically addresses the implementation of the February 2012 Final Rule regarding residential mortgage lenders and originators, ensuring that qualifying subsidiaries do not face overlapping compliance obligations.