#2021-30, September 24, 2021

Grassroots Contacts Still Needed in Opposition to IRS Reporting Proposal

MBA continues to urge all member bankers to contact their Senators and Representatives in Congress through the links provided below in opposition to this intrusive proposal mandating that banks collect and share account and transaction information on millions of customers with the IRS in an effort to increase tax compliance. While we strongly believe that Americans should honor their tax obligation, the proposal raises concerns regarding customer privacy and data security, increased compliance costs, and potential damage to customer relationships for community banks across America.  

Earlier today, the Association joined the Cooperative Credit Union Association in sending a joint letter to the Massachusetts delegation in opposition to the proposal.  A copy of the letter is available here.

As the Association has received bank customer inquiries expressing concerns about the proposal, we also encourage you to share this information with your customers, particularly your small business customers, and ask them to raise their concerns with their Senators and Representatives in Washington. Resources for customers are available on the websites below.

ACTION NEEDED: All member bankers are urged to contact Congress in opposition to the IRS reporting proposal, which is likely to be considered during debate on the budget reconciliation package in the coming days.  The American Bankers Association (ABA) and the Independent Community Bankers of America (ICBA) have sample letters to send to your Representatives and Senators.  Both groups also have resources to share with your customers to encourage them to oppose this proposal as well.  To access the ABA resources, click here, to access the ICBA resources, click here.

House Votes to Include SAFE Banking Act in Defense Authorization Bill

We are pleased to report that on a voice vote earlier this week, the House of Representatives adopted an amendment filed by Rep. Ed Perlmutter (D-CO) to the National Defense Authorization Act that includes the language of H.R. 1996, the SAFE Banking Act.  As you know, the SAFE Banking Act removes the federal prohibitions on banks serving cannabis and related businesses.  The Association strongly supports the SAFE Banking Act, and we will continue to advocate that Rep. Perlmutter’s amendment is included in the final version of the Defense Authorization bill.

President to Nominate Saule Omarova to Serve as Comptroller of the Currency

President Biden yesterday announced that he plans to nominate Saule Omarova to serve as Comptroller of the Currency. Currently a professor at Cornell Law School, Omarova has been a banking attorney and previously served in the Treasury Department. 

During her career, she has been a critic of certain aspects of financial regulation and supported policies traditionally opposed by the industry.  The national banking trades yesterday raised concerns about her nomination, and we expect that some Senators will raise these issues during her confirmation hearing later this year.

To read the official announcement, click here.

Treasury Announces Measures to Combat Ransomware Threat

Earlier this week, Treasury Department’s Office of Foreign Assets Control (OFAC) released an updated advisory on potential sanctions risks for facilitating ransomware payments.  The advisory notes that the federal government continues to discourage paying cyber ransom or extortion demands and stresses the importance of improving cybersecurity.

OFAC also announced sanctions against the virtual currency exchange SUEX OTC for facilitating financial transactions for ransomware. According to Treasury, more than 40 percent of SUEX's known transactions history is associated with illicit actors.  The sanctions prohibit all US citizens and entities from engaging in transactions with SUEX and allows enforcement actions against financial institutions engaged in these transactions.

To read more, click here.