#2021-31, October 8, 2021

Grassroots Contacts Still Needed in Opposition to IRS Reporting Proposal

With work on the budget reconciliation in Washington delayed, we continue 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 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.  

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.

Feds Release Federal Contractor Vaccine Mandate Guidance

Last week, the federal Safer Federal Workforce Task Force issued guidance on the recently announced requirement that employees of all federal contractors must receive a COVID-19 vaccination.  Certain banks that conduct business with the federal government or that have branches on military bases or other federal property are subject to the executive order and guidance.

The new guidance requires federal contractors to ensure all employees are vaccinated for COVID-19 by December 8, 2021 unless the employee is legally entitled to an accommodation for a disability or sincerely held religious belief, practice, or observance.  Contractors are mandated to review their employees’ documentation to provide vaccination status to the government.

In addition, the guidance requires federal contractors and visitors to their workplaces to comply with the Centers for Disease Control and Prevention guidance for masking and physical distancing.  In areas of high or substantial community transmission, fully vaccinated people must wear a mask in indoor settings while individuals who are not fully vaccinated must wear a mask indoors and in certain outdoor settings regardless of the level of community transmission in the area.

To read the guidance, click here.

Postal Service Launches Pilot Program for Check Cashing, Other Services

The US Postal Service recently launched a pilot program to offer certain financial services at certain post office locations in four locations.  According to published reports, consumers will have access to check-cashing services and the agency is considering offering other services such as bill paying services, ATM access, expanded money order capabilities and expanded wire transfer capabilities.  As we have reported previously, larger-scale expansion of postal banking requires congressional authorization, which MBA has strongly opposed.

Senate Confirms Chopra as CFPB Director, Banking Committee Deadlocks on Other Nominees

By a vote of 50 to 48 the Senate recently confirmed Rohit Chopra to a five-year term as director of the Consumer Financial Protection Bureau (CFPB).  Chopra has served as a member of the Federal Trade Commission since 2018, and previously served as student loan ombudsman at the Bureau.

In related news, the Senate Banking Committee deadlocked on a 12-12 vote on two other nominations—the nomination of Brian Nelson to serve as Treasury undersecretary for terrorism and financial crimes and Elizabeth Rosenberg to serve as assistant secretary for terrorist financing.  The Committee was also unable to reach consensus on three nominees to serve as assistant secretaries at the Department of Housing and Urban Development.  Under Senate rules, the majority leader may still bring nominees to the floor for a vote if there is a tie vote in Committee.

FDIC Hosting Webinars on Deposit Insurance Coverage for Bank Officers

The Federal Deposit Insurance Corporation (FDIC) is hosting free webinars about the deposit insurance rules beginning in October.  The webinars, which are scheduled for October 21, November 8 and 17 and December 14, are for bank officers and employees seeking a broad understanding of the deposit insurance coverage rules.  The sessions will also address general principles of coverage, ownership categories and requirements and provide information on additional deposit insurance resources. For more information, email DIBankerSeminars@fdic.gov.

To register for the webinars, click here.