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The Justice Department rescinded guidance on marijuana enforcement that directed federal officials not to interfere with states that have legalized the  substance.
Attorney General Jeff Sessions directed all U.S. attorneys to enforce the laws enacted by Congress that generally prohibit the cultivation, distribution and possession of marijuana.
The Financial Crimes Enforcement Network's 2014 guidance on Bank Secrecy Act expectations for servicing marijuana-related businesses remains in place for now, though questions remain about what the move will mean for the growing commercial marijuana industry.
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In the wake of a trail of consumer data breaches, a multi-industry coalition representing the financial, retail, insurance, telecom and technology industries  urged the House Energy and Commerce Committee to advance substantive data security legislation that protects consumers.
The coalition called for a "flexible, scalable standard" for data protection that is tailored to the size and complexity of the organization as well as the sensitivity of the data the organization holds. It also urged a standard policy of timely notice to consumers and law enforcement after a breach that would preempt a conflicting patchwork of state laws. It called for consistent enforcement of the new national standards by the Federal Trade Commission and state attorneys general, unless the organization is already regulated under a data security regime such as the Gramm-Leach-Bliley Act (for financial institutions) or HIPAA (for health insurers).
"Data security impacts every sector of the economy," the coalition said. "We therefore look forward to working with you and your colleagues to ensure that all sectors employ sound data security and alert consumers when a breach may result in identity theft or other financial harm."
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Th ICBA issued frequently asked questions on its lawsuit against Equifax as community banks continue to file cases against the credit bureau for its 2017  data breach.
Citing Equifax's failure to heed warnings about the security of its U.S. website, these lawsuits seek monetary relief for community banks affected by the breach of at least 145.5 million consumer records and 209,000 payment cards.
The community bank suits seek to recoup costs affiliated with: protective measures to deter customer identity theft, deposit and loan account fraud, customer notification, fraudulent transactions, payment card cancellation and replacement, and other expenses.
They also call on the court to direct Equifax to employ adequate security protocols consistent with legal and regulatory requirements and industry standards.
Community banks interested in filing a complaint against Equifax can learn more by visiting ICBA's Data Breach Information Center or contacting [email protected].
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Support for Anti-Money Laundering Modernization
Several financial groups thanked Reps. Steve Pearce (R-N.M.) and Blaine Luetkemeyer (R-Mo.) for introducing an anti-money laundering and coun
ter- terrorist financing modernization bill that will help prevent criminals from using shell companies to hide illicit activity.
The bill would impose a beneficial ownership reporting requirement on closely held, non-public legal entities and provide financial institutions with access to reported information to help them with their customer due diligence compliance efforts. "Financial institutions should be able to rely on the information reported by businesses to FinCEN, which would, in turn, reduce the reporting burden on those businesses," the groups said.
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Proposed Capital Rules Don't Go Far Enough
In late December, CSBS told federal regulators that proposed changes t
o simplify regulatory capital rules do not go far enough to help community banks.In a comment letter to the FDIC, OCC and Federal Reserve Board, CSBS asked for more substantial changes to the rules that would result in a simpler method for calculating risk-weighted assets for community banks.
The problem stems from Basel III, a global framework regulating bank adequacy that in 2013 created a standardized methodology for all banks, but in doing so creates a significant compliance burden for community banks. For example, the adoption of Basel III added the number of risk weighted assets for banks from 11 to 16 and the instructions from 32 pages to 102 pages.
The proposed changes are small and would not change the standardized methodology. CSBS instead wants a common definition for community banks - building on the FDIC's existing research definition - that would allow regulators to exempt smaller institutions that do not pose system risk from rules and regulations aimed at larger, more complex financial institutions.
In a press release last week, John Ryan, CSBS President and CEO said state regulators support simplification, but only if it's real and meaningful. He added: "Federal regulators need to keep in mind that a community bank is often the only local source of credit and banking services in hundreds of U.S. counties. And regulatory compliance has a disproportionate impact on their cost structure."
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