Financial Crime World

Northern Mariana Islands Financial Regulatory Bodies Provide Relief After Super Typhoon Yutu Devastation

Introduction

The Federal Deposit Insurance Corporation (FDIC) has announced a series of steps aimed at providing regulatory relief to financial institutions and facilitating recovery in areas of the Northern Mariana Islands affected by Super Typhoon Yutu.

Background

On October 24, 2018, Super Typhoon Yutu struck parts of Rota, Saipan, Tinian, and the Northern Islands municipalities, causing significant property damage. The FDIC is taking steps to support financial institutions and their customers in these affected areas.

Regulatory Relief Measures

The FDIC is providing regulatory relief in several ways:

  • Constructive Work with Borrowers: The agency is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control due to the disaster.
  • Regulatory Relief from Filing Requirements: The FDIC is considering regulatory relief from certain filing and publishing requirements, as well as providing favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
  • Acceptable Delay in Reporting: When evaluating the length of an acceptable delay in filing Reports of Income and Condition or other reports, the FDIC will consider any causes beyond the control of a reporting institution.

Guidance and Support

The FDIC is providing guidance on:

  • Lending: Financial institutions are encouraged to meet the financial services needs of their communities.
  • Investments: The agency is providing guidance on investments that support disaster recovery efforts.
  • Publishing Requirements: The FDIC is providing temporary relief from publishing requirements for financial institutions in affected areas.
  • Consumer Laws: The agency is reminding financial institutions to comply with consumer laws and regulations, including those related to lending and credit reporting.

The FDIC is also:

  • Temporary Banking Facilities: Providing expedited processing for requests to operate temporary banking facilities by institutions whose offices have been damaged or that desire to provide more convenient availability of services to those affected by severe weather.
  • Regulatory Relief Requests: Encouraging financial institutions in the affected areas to notify the San Francisco Regional Office if they expect a delay in filing reports or if they require regulatory relief.

Conclusion

The FDIC’s actions are intended to support the recovery efforts and help financial institutions in the Northern Mariana Islands recover from the devastating effects of Super Typhoon Yutu.