Financial Crime World

Financial Regulatory Bodies in Northern Mariana Islands Provide Relief after Typhoon Soudelor

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Overview

The Federal Deposit Insurance Corporation (FDIC) issued a Financial Institution Letter on August 7, 2015, outlining steps to provide regulatory relief to financial institutions and facilitate recovery in areas of the Commonwealth of Northern Mariana Islands affected by Typhoon Soudelor.

Regulatory Relief for Banks

  • Work with Borrowers: The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control due to the typhoon. Extending repayment terms, restructuring existing loans, or easing terms for new loans can contribute to the health of the local community and serve the long-term interests of the lending institution.
  • Community Reinvestment Act (CRA): Banks may receive favorable CRA consideration for community development loans, investments, and services in support of disaster recovery. The FDIC will consider regulatory relief from certain filing and publishing requirements for banks experiencing disaster-related difficulties.

Assistance for Financial Institutions

The Federal Deposit Insurance Corporation recognizes the serious impact of the typhoon on customers and operations of financial institutions in the Commonwealth of Northern Mariana Islands. The agency is providing assistance to institutions subject to its supervision, including:

  • Lending: Bankers should work constructively with borrowers in communities affected by the typhoon.
  • Community Reinvestment Act (CRA): Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas.
  • Investments: Bankers should monitor municipal securities and loans affected by the typhoon.
  • Reporting Requirements: FDIC-supervised institutions affected by the typhoon should notify the San Francisco Regional Office if they expect a delay in filing Reports of Income and Condition or other reports.
  • Publishing Requirements: The FDIC understands that the damage caused by the typhoon may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations.

Consumer Protections

Regarding consumer loans, Regulation Z provides consumers an option to waive or modify the three-day rescission period when a “bona fide personal financial emergency” exists. To exercise this option, the consumer must provide the lender with a statement describing the emergency in accordance with the regulation.

Temporary Banking Facilities

The San Francisco Regional Office will expedite any request to operate temporary banking facilities by an institution whose offices have been damaged or that desires to provide more convenient availability of services to those affected by the typhoon.