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Alabama Securities Commission extends relief provided to registrants affected by Covid-19
The Alabama Securities Commission has extended a temporary order providing relief to registrants affected by Covid-19 to May 15, 2020, in light of the Alabama governor’s issuance of the April 28, 2020 “Safer at Home” order. The temporary order was originally covered here.
SEC issues Covid-19-related FAQs regarding the filing of reports
On May 4, the Securities and Exchange Commission issued FAQs responding to questions regarding disclosures that take advantage of extended filing deadlines under a March 25, 2020 Covid-19 Order and Form S-3. The issuances notes that staff may supplement or amend the responses to the FAQs.
Missouri extends various executive orders issued in response to Covid-19
On May 4, the Missouri governor issued Executive Order 20-10, which extends Executive Orders 20-04 (authorizing specific departments to waive or suspend statutory requirements and administrative rules), 20-05 (relating to the restaurant industry), 20-06 (relating to organized militia), and 20-08 (relating to remote notarization), issued in response to Covid-19. Executive Order 20-04 was previously covered here and Executive Order 20-08 was previously covered here.
District of Columbia amends emergency Covid-19 response legislation to add reporting obligations for mortgage deferments
On May 4, the District of Columbia amended the Covid-19 Response Supplemental Emergency Amendment Act (previously covered here) to, among other things, include mortgage lenders as covered entities and require lenders to provide the commissioner of the Department of Insurance, Securities and Banking with lists of all approved mortgage deferments in 15-day intervals.
Florida regulator reminds money transmitters of license renewal extensions
On May 4, the Florida Office of Financial Regulation reminded Money Transmitter Part II licensees that the deadline to renew licenses has been extended to June 1, 2020 (previously covered here). Licensees that fail to renew by June 1 will be considered inactive and will need to pay an additional fee to reactivate the license. Inactive licenses not renewed by July 30, 2020 will expire.
State AGs urge industry group develop better tools to fight illegal robocalls
On May 4, the National Association of Attorneys General published a letter to US Telecom, an industry group of telecommunications providers, and the Industry Traceback Group, an industry group dedicated to assist with the tracing of illegal robocalls. The letter noted that state attorneys general intend to intensify enforcement efforts against illegal robocallers, and urged US Telecom and the Industry Traceback Group to expand capabilities related to tracebacks in anticipation of growth in the need for data analysis and the number of civil investigative demands and subpoenas that will be issued directly to the Industry Traceback Group. The need for action has been tied to an increase in Covid-19 related robocalls.
Pennsylvania State Department extends appraiser testing deadlines
On May 4, the Pennsylvania Department of State announced that it extended the deadline for individuals whose applications to become certified real estate appraisers have been approved to take and pass the appraiser certification examination. Previously, approved applicants had one year to take and pass the examination. The department waived the one-year limitation for applicants whose one-year approval is in danger of expiring due to the closure of testing sites. Impacted applicants now have two years to sit for the examination.
Minnesota issues executive order regarding garnishment during Covid-19
On May 4, the Minnesota governor issued an executive order that classifies recovery rebates under the CARES Act as “government assistance based on need” under Minnesota Statutes 2019, section 550.37, subdivision 14. As a result, such recovery rebates are exempt from all claims by creditors, except claims for domestic support obligations. Additionally, for purposes other than domestic support obligations, state, local, and tribal government payments issued to relieve consumers of the adverse economic impact caused by Covid-19 are also considered government aid and, thus, exempt from claims by creditors. The order also suspends the provisions that permit: (i) service of a garnishment summons on a consumer debtor of consumer garnishee; (ii) prejudgment garnishment on a consumer debtor, and (iii) a judgment creditor to obtain information about a consumer debtor’s assets, liabilities, and personal earnings. The order will remain in effect until the peacetime emergency declared in Executive Order 20-01 is terminated or until the order is rescinded.
Maryland provides guidance on garnishment of CARES Act recovery rebates
On May 4, the Maryland governor’s Office of Legal Counsel provided interpretive guidance for financial institutions regarding a previous executive order prohibiting garnishment of CARES Act recovery rebates. The office recommended enforcement action not be taken against a financial institution in a number of situations, including if it subjected a customer’s CARES Act rebate to garnishment and sent the proceeds to a judgment creditor prior to receiving notice of the order or being reasonably able to act on it. The office also clarified that application of a CARES Act recovery rebate to the negative balance in an overdrawn account is not considered to be the exercise of a lien or right of setoff for purposes of the executive order.
FATF highlights financial crime risks related to Covid-19 pandemic
On May 4, the Financial Action Task Force (FATF) released a report identifying challenges, good practices, and policy responses to new money laundering and financing threats arising from the Covid-19 pandemic. The report notes that the global response to the Covid-19 pandemic is limiting the ability of the government and public sector to implement oversight of anti-money laundering and countering the financing of terrorism (AML/CFT) obligations. Among other things, FATF noted that Covid-19 threats and corresponding vulnerabilities could result in the following: (i) increased misuse of online financial services and virtual assets to move illicit funds; (ii) the bypassing of customer due diligence measures; and (iii) the misuse and misappropriation of domestic and international financial aid. Additionally, FATF noted that the increased use of online platforms for social interaction, consumer shopping, and banking measures may also lead to increased fraud by criminal actors, such as impersonation of officials, counterfeiting essential goods, and fundraising for fake charities. To address these concerns, FATF emphasized that domestic coordination assessing the impact of Covid-19 on AML/CFT risks, the use of a risk-based approach to customer due diligence, and strengthened communication with the private sector may help support the implementation of measures to manage the new risks and vulnerabilities.