#2022-08, March 11, 2022

MBA Bankers Attend ABA’s Washington Summit, Mutual Forum, and Emerging Leaders Forum

This week, MBA staff and several bankers traveled to Washington, DC to attend the American Bankers Association’s (ABA) Washington Summit, Mutual Bank Forum, and Emerging Leaders Forum.  

At the Mutual Bank Forum, Julie Thurlow, president and CEO, Reading Cooperative Bank discussed her institutions initiatives to serve unbanked individuals, families, and businesses in Lawrence.  Nicole Almeida, senior vice president and chief diversity officer at BayCoast Bank and vice-chair of ABA’s Emerging Leaders Council presided at the Emerging Leaders Forum’s afternoon sessions, while Thurlow also participated on a panel of ABA leaders during the event.

The Washington Summit included a wide array of speakers on legislative, regulatory, economic, and political issues. Speakers included House Financial Services Committee Chairwoman Maxine Waters (D-CA); Ranking Republican Patrick McHenry (R-NC); Rep. Ed Perlmutter (D-CO); Senators Jon Tester (D-MT) and Jerry Moran (R-KS); Acting Comptroller of the Currency Michael Hsu; and Small Business Administration (SBA) Administrator Isabella Casillas Guzman.  The summit also an entertaining political roundtable featuring former senators Kelly Ayotte (R-NH) and Claire McCaskill (D-MO), who discussed the outlook for the 2022 elections and the 2024 presidential race. 

A special thanks to MBA Chairman Peter G. Brown, president and CEO, Dedham Savings Bank; Martin F. Connors, Jr., president & CEO, Rollstone Bank and Trust; Kathleen C. Marcum, president & CEO and John Latino, vice president and COO, Millbury National Bank; Julie Thurlow, president and CEO and Shanna Cahalane vice president, Reading Cooperative Bank; Gary Vierra, senior vice president, Nicole Almeida, senior vice president and Casey Brouthers, vice president, BayCoast Bank; Ibrahim Hachem, assistant vice president, East Cambridge Savings Bank; Michael McCurdy, chief risk officer and general counsel, Brookline Bank; and Jeffrey Worth, president and CEO, Wakefield Cooperative Bank for their participation in this year’s event.

FinCEN Calls for Financial Institution Vigilance on Russian Attempts to Evade Sanctions

With the escalation of Russia’s war in Ukraine and the imposition of more sanctions on Russian businesses and individuals, the Financial Crimes Enforcement Network recently stated that financial institutions must be vigilant against attempts to evade the sanctions currently in place.  In an advisory released this week, FinCEN noted that “sanctioned Russian and Belarusian actors may seek to evade sanctions through various means, including through non-sanctioned Russian and Belarusian financial institutions and financial institutions in third countries.”

The agency also highlighted several red flags that could signal attempted sanctions evasions, including those related to convertible virtual currency (CVC).  According to FinCEN, banks should monitor for transactions initiated from IP addresses located in Russia, Belarus, or other sanctioned jurisdictions; transactions connected to CVC addresses listed on the Office of Foreign Assets Control’s lists of specially designated nationals and blocked persons; and customer use of a CVC exchanger or foreign-located money service businesses in a high-risk jurisdiction.

To read the advisory, click here.

President Biden Signs Digital Assets, CBDC Executive Order

This week, President Biden signed an executive order directing federal government agencies to take steps to advance the use of digital assets, including further exploration of a possible US central bank digital currency (CBDC).  The order directs the Fed to continue its ongoing work in this area and calls for “placing urgency on research and development of a potential United States CBDC, should issuance be deemed in the national interest.”

The EO also directs the Treasury Department and other agencies to develop policy recommendations to address the growing digital asset sector and ensure consumer protection; directs the Financial Stability Oversight Council to identify and mitigate systemic risks related to digital assets; and calls for a whole of government approach to direct “unprecedented focus” to mitigate illicit finance and national security risks posed by illicit use of digital assets.

To read the executive order, click here.