Washington Adds Regulatory Tools
Washington Governor Chris Gregoire signed into law two bills to give the Washington State Department of Financial Institutions additional tools necessary to support the financial health and stability of the state’s financial institutions. “The banking bill addresses some shortcomings in Washington’s banking statutes and enhances DFI’s enforcement powers to include bank holding companies,” said DFI Director of the Division of Banks Brad Williamson. The banking law gives DFI enforcement powers over bank holding companies; provides enhanced enforcement authority for institutions that are less than well capitalized; and brings DFI’s enforcement authority into line with federal standards for prompt corrective action for institutions that are less than well capitalized. The other new law provides DFI with greater regulatory tools for state credit unions, such as the authority to suspend credit union directors for harmful activities. “We are pleased to have these additional regulatory tools in our state’s regulatory toolbox,” said DFI Director Scott Jarvis. Read more

FTC Halts Credit Repair Scam
The Federal Trade Commission reached a settlement with a credit repair service that deceived consumers into paying thousands of dollars based on false promises that he could help solve their credit and debt problems. FTC alleged that Sam Tarad Sky and his companies illegally charged consumers up to $2,199 before performing any services and failed to tell customers they could cancel the contract within three business days. He also falsely told consumers who bought debt relief services that they could satisfy their debt by paying much less than the full amount owed, such as 30 cents on the dollar. The settlement includes a judgment of almost $2.5 million against Sky, Credit Restoration Brokers LLC, and Debt Negotiations Associates LLC. However, the judgment will be suspended because of inability to pay. Read more

FinCEN Issue Laundering Advisory
The Financial Crimes Enforcement Network advised banks and other financial institutions operating in the United States of the risks associated with 20 jurisdictions identified by the Financial Action Task Force as having deficiencies in their anti-money laundering and counter-terrorist financing regimes. The jurisdictions are Antigua and Barbuda, Azerbaijan, Bolivia, Greece, Indonesia, Kenya, Morocco, Myanmar, Nepal, Nigeria, Paraguay, Qatar, Sri Lanka, Sudan, Syria, Trinidad and Tobago, Thailand, Turkey, Ukraine, and Yemen. For these jurisdictions, FATF said there has been a high-level political commitment to address the specific anti-money laundering and counter-terrorist financing deficiencies identified. FATF explained its specific concerns regarding each of the jurisdictions and will continue to monitor the jurisdiction's adoption of an action plan for addressing problems. FinCEN said banks should use their general due diligence measures for these jurisdictions. Read more

IRS Seeks Issues to Resolve
The Internal Revenue Service is seeking tax issues that are controversial, disputed or  unnecessarily burdensome to be resolved through its Industry Issue Resolution process. IRS encouraged submissions from business taxpayers, associations and other interested parties by March 31. The objective of the program is to resolve business tax issues common to a significant numbers of taxpayers through new and improved guidance. In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayer, IRS said. If an issue is selected for the program, a multi-functional team is assembled and writes new guidance. While tax issues may be submitted at any time, issues submitted by March 31 will be included in the next semi-annual selection process in April. Read more