Senate GOP Readies Effort to Nix CFPB’s Arbitration Rule

From: BNA

By Rob Tricchinelli and Jeff Bater

Senate Republicans aren’t wasting any time in trying to negate the CFPB’s rule barring the use of mandatory arbitration to block class actions by consumers, even as federal regulators lay the groundwork for their own attempts to delay or halt the rule.

An effort is already underway to scotch the rule using the Congressional Review Act, a statute that allows Congress to overturn executive branch actions, and a resolution could be unveiled as soon as July 19, Senate Banking Chairman Mike Crapo (R-Idaho) told Bloomberg BNA in a brief interview.

Anti-money laundering efforts examined at House subcommittee hearing

Editor’s Note: See, Unwarranted Deputization: Increased Delegation of Law Enforcement Duties to Financial Institutions Undermines American Competitiveness.

From: Financial Regulation News

At a hearing last week by the House Financial Institutions and Consumer Credit Subcommittee, lawmakers and experts examined the federal government’s anti-money laundering (AML) efforts under the Bank Secrecy Act (BSA).

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“The goals of the Bank Secrecy Act and anti-money laundering (BSA/AML) legal regime are laudable: financial institutions and government agencies should work together to prevent money laundering and terrorist financing. However, aspects of this regulation have spiraled out-of-control and resulted in a breakdown between law enforcement, financial regulators, and institutions. The de-risking seen throughout the financial services space, in part because of BSA/AML regulation, actually increases risk to the system,” Rep. Blaine Luetkemeyer (R-MO), subcommittee chair, said. “We cannot afford to have an ineffective BSA/AML regime.”