Financial Crimes Enforcement Network (FinCEN) Issues Additional Order to Permit Federal Reserve-Supervised Banks to Use Alternative Collection Method for Obtaining Tax Identification Number (TIN) Information
On July 31, 2025, FinCEN, in coordination with the Board of Governors of the Federal Reserve (Board), issued an order permitting banks under the Board’s jurisdiction to collect TIN information from a third party rather than from the bank’s customer. This order follows an order that FinCEN issued in coordination with the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA), providing banks under those agencies’ jurisdictions with the same relief. These orders provide banks with greater flexibility in fulfilling compliance obligations and take into account public comments received in response to an interagency request for information.
https://www.fincen.gov/system/files/shared/CIP-TIN-Exemption-Order-Board-only-508.pdf
Nacha Issues Operations Bulletin #3-2025 – Automating the Request for Proof of Audit
In a new Automated Clearing House (ACH) Operations Bulletin, Nacha is informing banks and credit unions that, beginning in October 2025, the process of requesting proof of an ACH Rules compliance audit of the financial institution and, if applicable, its third-party senders, will be automated. The process will go through Nacha’s Risk Management Portal. Until now, this has been a manual process, which limited the number of participants contacted.
https://www.nacha.org/news/ach-operations-3-2025-automating-request-proof-audit?utm_campaign=702-Rules%20Outreach&utm_medium=email&_hsenc=p2ANqtz-8sjrYxze4ejg8dT_aeCYpigcOLCV0ZA5tmwx9Y7DkiO7m-LgCytA5uOQeSSCwkCyiQFRq62ZKGxO6xJj53m0ZIifsEdw&_hsmi=380273382&utm_content=380273382&utm_source=hs_email
FDIC Issues 2025 Consumer Compliance Supervisory Highlights
This issue of the FDIC Consumer Compliance Supervisory Highlights includes:
- A summary of the overall results of the FDIC’s consumer compliance examinations of supervised institutions in 2024;
- A description of the most frequently cited violations in 2024; and
- An overview of trends in consumer complaints that were processed by the FDIC in 2024.
https://www.fdic.gov/bank-examinations/summer-2025.pdf
NCUA Drops Disparate Impact for its Fair Lending Guide
The NCUA announced its removal of all references to disparate impact liability for its Fair Lending Guide and other issuances.
The changes follow Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy,” which directs federal agencies to eliminate the use of disparate impact liability in all contexts. The NCUA’s examination and supervision processes will no longer include reviews for disparate impact, and the agency will no longer request, review, or conclude or follow up on:
- Matters related to a credit union’s disparate impact risk;
- Internal disparate impact risk analysis; and
- Disparate impact risk assessment processes or procedures.
https://ncua.gov/files/publications/regulations/fair-lending-guide.pdf
FDIC Consumer Compliance Examination Manual Updates
References to disparate impact have been removed from the Consumer Compliance Examination Manual effective as of August 29, 2025, in the following chapters:
- Fair Lending Laws and Regulations (IV-1.1)
- Fair Lending Appendices (IV-2.1)
- Fair Lending References (IV-4.1)
- Unfair, Deceptive, and Abusive Practices – Federal Trade Commission Act/Dodd-Frank Act (VII-1.1)
To assist readers in identifying the changes, the FDIC has provided a redline document of the changes made.
https://www.fdic.gov/redlined-document-identifying-changes.pdf?source=govdelivery&utm_medium=email&utm_source=govdelivery
OCC Fair Lending: Removing References to Disparate Impact
The OCC has removed references to supervising banks for disparate impact liability from the “Fair Lending” booklet of the Comptroller’s Handbook and has commenced removing references in other issuances. Concurrently, the OCC has instructed its examiners to no longer examine for disparate impact.
https://occ.gov/news-issuances/bulletins/2025/bulletin-2025-16.html
The Second Issue 2025 of Consumer Compliance Outlook (CCO) is Now Available
Because of the increase in fraudulent transactions affecting consumers, CCO is publishing this special issue on the following fraud-related topics:
- A Note from the Editors
- Responding to Counterfeit Instrument Scams and Mail-Related Check Fraud
- Confidence Scams: What They Are and How to Protect Your Customers
- Agencies Request Comments on Ways to Address Check and Payment Fraud
- Cybersecurity Resources for Community Banks
- Regulatory Calendar
https://www.consumercomplianceoutlook.org/2025/second-issue/fraud-article-introduction/
FDIC Board of Directors Approves Proposal to Amend Official Signs and Advertising Requirements
The FDIC Board of Directors approved a proposed rule to amend regulations governing the display of the FDIC official digital sign and non-deposit signage. The proposal would simplify requirements for banks’ display of the FDIC official digital sign and non-deposit signage on digital deposit-taking channels, such as bank websites and mobile applications, as well as on automated teller machines (ATMs) and similar devices.
The proposed changes are intended to revise requirements adopted in a 2023 final rule that, among other things, established the FDIC official digital sign and required signage for ATMs and digital banking channels. The proposal would focus display requirements for the FDIC official digital sign and the non-deposit signage on the screens and pages where signage would be most relevant for consumers.
Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register.
Federal Reserve Board Announced that Reputational Risk Will No Longer Be a Component of Examination Programs in its Supervision of Banks
The Federal Reserve Board announced that reputational risk will no longer be a component of examination programs in its supervision of banks.
The Board has started the process of reviewing and removing references to reputation and reputational risk from its supervisory materials, including examination manuals, and, where appropriate, replacing those references with more specific discussions of financial risk. The Board will train examiners to help ensure that this change is implemented consistently across Board-supervised banks and will work with the other federal bank regulatory agencies to promote consistent practices, as necessary.
This change does not alter the Board’s expectation that banks maintain strong risk management to ensure safety and soundness and compliance with laws and regulations, nor is it intended to impact whether and how Board-supervised banks use the concept of reputational risk in their own risk management practices.
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250623a.htm
Agencies Issue Joint Statement on Risk-Management Considerations for Crypto-Asset Safekeeping
Federal bank regulatory agencies issued a joint statement in their continued efforts to provide clarity on banks’ engagement in crypto-asset-related activities. The statement highlights for banks the potential risk-management considerations related to holding crypto-assets on their customers’ behalf, or crypto-asset safekeeping. The joint statement discusses existing risk-management principles that apply to crypto-asset safekeeping and reminds banks that provide or are considering providing safekeeping of such assets that they must do so in a safe and sound manner and in compliance with applicable laws and regulations.
The statement does not create any new supervisory expectations. The agencies continue to explore ways to provide additional clarity with respect to banks’ engagement in crypto-asset-related activities.
Federal Reserve Board Joins Other Federal Financial Institution Regulatory Agencies in Providing Banks the Flexibility to Use an Alternative Method for Collecting Certain Customer Identification Information
The Federal Reserve Board joined other federal financial institution regulatory agencies, as well as FinCEN, in providing banks the flexibility to use an alternative method for collecting certain customer identification information. Specifically, the agencies now permit banks and credit unions to obtain a tax identification number from a third party, rather than directly from the customer.
By law, banks and credit unions are required to verify the identity of a potential customer by obtaining certain identifying information before opening an account. Since this requirement’s implementation in 2003, there have been considerable changes in the way that customers interact with banks and receive financial services. This action will grant banks flexibility in how they obtain this information, while ensuring that risk-based procedures continue to underpin verification of a customer’s identity.
The flexibility from this action is optional, and banks are not required to use alternative collection methods. The Board coordinated its action with the FDIC, the OCC, the NCUA, and FinCEN.
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250731a.htm
FDIC Supervisory Approach Regarding the Use of Pre-Populated Information for Purposes of Customer Identification Program (CIP) Requirements
The FDIC is updating its supervisory approach regarding whether an FDIC-supervised institution can use pre-populated customer information for the purpose of opening an account to satisfy CIP requirements. Under the FDIC’s interpretation, a financial institution could use information from current or prior accounts or relationships involving the bank or its agents, or other sources, such as parent organizations, affiliates, vendors, and other third parties, to pre-fill information that is reviewed and submitted by the customer. The FDIC considers such information from the customer for purposes of the CIP rule. When examining an FDIC-supervised institution that collects identifying information from a customer where some or all of the information was pre-populated, FDIC examiners will consider the pre-filled information as from the customer, provided that (1) the customer has the opportunity and ability to review, correct, update, and confirm the accuracy of the information, and (2) the institution’s processes for opening an account that involves pre-populated information allow the institution to form a reasonable belief as to the identity of its customers and are based on the institution’s assessment of the relevant risks, including the risk of fraudulent account opening or takeover.
https://www.fdic.gov/news/financial-institution-letters/2025/fdic-supervisory-approach-regarding-use-pre-populated?source=govdelivery&utm_medium=email&utm_source=govdelivery
