FinCEN Issues Order Granting Relief to Banks From Certain CDD Requirements
In an order dated February 13, 2026, the Financial Crimes Enforcement Network (FinCEN) granted exemptive relief to banks from the requirement to identify and verify beneficial owners of legal entity customers at each account opening.
2016 Customer Due Diligence Rule
FinCEN issued its customer due diligence rule in 2016 requiring covered financial institutions (banks) to identify the beneficial owner(s) of each legal entity customer by obtaining from each such customer specified information about its beneficial owner(s), either via a certification form, or by some other means, provided the individual performing the information certifies the information is accurate. Identification need occur “at the time a new account is opened.” FinCEN’s regulations define the phrase “new account” to mean “each account opened at a covered financial institution by a legal entity customer on or after the applicability date.”
In addition to requiring identification of beneficial owner(s) of legal entity customers, the 2016 rule further required banks to verify the identity of each beneficial owner identified to the bank, according to risk-based procedures to the extent reasonable and practicable within a reasonable time after an account is opened.
Under the 2016 rule, banks are required to identify and verify a legal entity customer’s beneficial owners(s) each time that customer opens an account with the bank, regardless of how little time passes between account openings or whether the bank has knowledge of facts that would reasonably call into question the reliability of beneficial ownership information last obtained about the customer.
Exemptive Relief
FinCEN has granted exemptive relief to banks from the requirements to identify and verify the identities of beneficial owner(s) of legal entity customers at each new account opening. A bank may instead limit its identification and verification of the identities of beneficial owner(s) to the following scenarios:
1. When a legal entity customer first opens an account with the bank;
2. Any time thereafter when the bank has knowledge of facts that would reasonably call into question the reliability of beneficial ownership information previously obtained about the legal entity customer; and
3. As needed, based on the bank’s risk-based procedures for conducting ongoing customer due diligence.
When the bank determines, based on its risk-based procedures for conducting ongoing customer due diligence, that it needs to identify and verify the identity of the beneficial owner(s) of a legal entity customer, the bank may rely on beneficial ownership information previously obtained provided the customer certifies or confirms (verbally or in writing) that such information is up-to-date and accurate.
The bank must maintain a record of such certification or confirmation, including for both verbal and written confirmations by the customer. If a customer is unable to certify or confirm that previously obtained beneficial ownership information is up-to-date and accurate, or if the bank has knowledge of facts that would reasonably call into question the reliability of beneficial ownership information previously obtained about the legal entity customer, the bank must identify and verify the identities of the beneficial owner(s) of the legal entity customer in accordance with the customer due diligence rule, 31 C.F.R. § 1010.230.
Special Focus
The exceptive relief is intended to assist banks, specifically to limit their identification and verification of the identities of beneficial owner(s). As such, it creates no new requirements. Banks are still required to establish and maintain written procedures that are reasonably designed to identify and verify beneficial owner(s) of legal entity customers. The extent to which a bank utilizes the exceptive relief discussed above and incorporates it into existing policies is at the discretion of the bank. As a result, banks may still collect beneficial ownership information at each account opening if they choose.
Conclusion
FinCEN has granted exemptive relief to banks from the requirement to identify and verify beneficial owner(s) of legal entity customers at each account opening. Notwithstanding the relief, a bank must comply with all other applicable anti-money laundering/counter the financing of terrorism (AML/CFT) requirements under the Bank Secrecy Act, including the obligation to conduct ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information.
The order may be viewed at: https://www.fincen.gov/system/files/2026-02/FinCEN-OrderCCDExceptiveRelief.pdf
WBA Seeks Feedback on Recent SBA Loan Program Changes
The Small Business Administration (SBA) released significant updates to its citizenship and residency requirements for participation in the 7(a) and 504 loan programs. The changes revise eligibility standards for business owners and guarantors. A summary of the changes is provided below. WBA is currently evaluating the extent of the impact on the Wisconsin banking industry. If your bank is impacted by the changes, please contact WBA legal by the end of February at: wbalegal@wisbank.com
Background and Change to Prior Guidance
In December of 2025, SBA issued Procedural Notice 5000872050. The notice created an exception to SBA’s general citizenship and residency requirements, permitting borrowers to have up to 5% ownership by certain foreign nationals or U.S. persons residing outside the United States. Subsequently, on February 2, 2026, SBA issued Policy Notice 5000876441 rescinding the December 2025 procedural notice, replacing it with stricter requirements.
Under the new policy, 100% of all direct or indirect owners of a small-business loan applicant must be either U.S. citizens or U.S. nationals with their principal residence inside the United States, its territories, or possessions. The changes are effective March 1, 2026. As a result, the 5% foreign-ownership exception is fully eliminated. Legal Permanent Residents are no longer eligible to own any percentage of an SBA loan applicant or related entities. Likewise, any SBA-required guarantors must be U.S. citizens or nationals with a U.S.-based principal residence.
Because of the potentially significant impact this immediately has upon the operation of 7(a) lenders, WBA is requesting impacted banks reach out. If you are impacted, or anticipate impact, please contact WBA legal by the end of February at: wbalegal@wisbank.com
The December 2025 SBA Procedural Notice 5000872050 may be viewed at: https://www. sba.gov/document/procedural-notice-5000-872050-procedural-notice-5000-872050update-sop-50-10-8-citizenship-residency-requirements
The February 2026 SBA Policy Notice 5000876441 may be viewed at: https://www.sba. gov/document/policy-notice-5000-876441-update-sop-50-10-8-citizenship-residencyrequirements-recission-procedural-notice-5000-872050
Feburary 2026
Volume 31, Number 8
Wisconsin Bankers Association
4721 South Biltmore Lane, P.O. Box 8880, Madison, Wisconsin, 53708-8880
Questions Resulting from DOR Transfer Return System Upgrade
The Wisconsin Department of Revenue (DOR) recently launched its Real Estate Transfer Return (RETR) system. The updated system is intended to enhance the overall reliability and strengthen security protections for the general public, county officials, and third-party vendors.
As a result of the system update, information that was previously ‘voluntarily’ collected by DOR has been made ‘mandatory’ within the system. Information now required includes certain nonpublic information such as taxpayer identification numbers and buyers’ financing terms and rate.
Several banks have received notification from their local title company instructing the bank of additional information requirements and in some cases asking for nonpublic information from banks.
This article is to alert banks that there is no new area of law regarding information reported related to a transfer return under subchapter II of Wisconsin Statute chapter 77. In conversations with DOR regarding the new system, DOR leadership has confirmed that the change in system has inadvertently resulted in all information fields being treated as mandatory. The DOR is aware of the system error and is working to correct the problem. A frequently asked questions (FAQ) resource regarding the matter is to be posted by DOR to its transfer return website.
In the interim, banks should consider how to respond if a title company asks for additional nonpublic information in a transaction for which a transfer return is to be filed. A title company can certainly collect the necessary information directly from the parties to the transaction in its loan closing process. However, if a bank were to be asked to share nonpublic information with a title company in connection with one of the bank’s loan closings, the sharing of nonpublic information likely falls under Regulation P exceptions to notice and opt-out requirements for the processing and servicing of transactions.
Resources from DOR regarding their RETR system may be viewed at: https://www.revenue.wi.gov/Pages/RETr/Home.aspx https://www.ranww.org/documents/resources/transfer-return-overview.pdf
Regulatory Spotlight
Agencies Publish Report of Accounting and Capital Standards Differences.
The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) (collectively, the agencies) prepared a report pursuant to section 37(c) of the Federal Deposit Insurance Act. Section 37(c) requires the agencies to jointly submit an annual report to the Committee on Financial Services of the U.S. House of Representatives and to the Committee on Banking, Housing, and Urban Affairs of the U.S. Senate describing differences among the accounting and capital standards used by the agencies for insured depository institutions. The report is required to be published in the Federal Register. The agencies have not identified any material differences in accounting and capital standards applicable to the institutions they regulate and supervise. The report may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-15/pdf/2026-00642.pdf Federal Register, Vol. 91, No. 10, 01/15/2026, 1789-1791.
The Bureau of Consumer Financial Protection (CFPB) and Department of Justice announced the withdrawal of a joint statement issued in October 2023 regarding the implications of a creditor’s consideration of an individual’s immigration status under the Equal Credit Opportunity Act (ECOA). The statement published in the Federal Register 10/18/2023, is withdrawn as of 01/12/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-12/ pdf/2026-00328.pdf Federal Register, Vol. 91, No. 7, 01/12/2026, 1138-1139.
CFPB Seeks Comment on Information Collections.
CFPB seeks comment regarding an information collection titled, ICBA Disclosure Testing: Qualitative Pre-testing of Survey Instrument and Modified Disclosure Forms. The central research question that the Independent Community Bankers of America (ICBA) will be examining in the testing is whether the modified mortgage disclosures are more effective than current disclosures for a sample of consumers who are similar in age, income, and education to community bank customers. Effectiveness will be measured by how well a consumer can understand various dimensions of each loan by answering comprehension questions (e.g., interest rate, payment schedule, etc.) for various types of constructionto-permanent and construction loans they are presented. Comments are due 02/20/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-21/pdf/2026-01086.pdf Federal Register, Vol. 91, No. 13, 01/21/2026, 2524-2525.
CFPB seeks comment regarding an information collection titled, Consumer Response Intake Form. The form is designed to aid consumers in the submission of complaints, inquiries, and feedback and to help CFPB fulfill its statutory requirements. The form prompts consumers for a description of, and key facts about, the complaint at issue, the desired resolution, contact and account information, information about the company they are submitting a complaint about, and previous action taken to attempt to resolve the complaint. Comments are due 03/02/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-30/pdf/2026-01895.pdf. Federal Register, Vol. 91, No. 20, 01/30/2026, 4066-4067.
CFPB seeks comment regarding information collections titled, Report of Terms of Credit Card Plans; and Consumer and College Credit Card Agreements. CFPB intakes different forms of credit card data from credit card issuers, as required by the Truth in Lending Act, and implementing regulations. The data collections enable CFPB to provide Congress with a centralized and searchable repository for terms of credit card plans, consumer credit card agreements, college credit card agreements, and information regarding the arrangements between financial institutions and institutions of higher education. Comments are due 04/07/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-202602-06/pdf/2026-02456.pdf. Federal Register, Vol. 91, No. 25, 02/06/2026, 5436-5437.
FRB Announces Final Approval of Information Collections.
The Board of Governors of the Federal Reserve System (FRB) announced final approval of an information collection titled, Interchange Transaction Fees Survey. The data are used to fulfill a statutory requirement that FRB disclose certain debit card transaction information on a biennial basis. In addition, FRB uses data to report on an annual basis the extent to which networks have established separate interchange fees for exempt and covered issuers. The notice includes a summary of the comments received regarding the notice and FRB’s response to each comment. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-12/pdf/2026-00391.pdf Federal Register, Vol. 91, No. 7, 01/12/2026, 1180-1184.
Regulatory Spotlight
FRB announced final approval of an information collection titled, Intermittent Survey of Businesses. The survey data are used to gather information to enable the Federal Reserve System to carry out its policy and operational responsibilities. Under the guidance of FRB, Reserve Banks survey business contacts as economic developments warrant. The surveys provide FRB members and Reserve Bank presidents real-time insights into economic conditions. FRB tailors the survey questions to match current concerns and interests, but are not meant to supplant the more rigorous, existing economic reporting. FRB collects aggregate responses from the Reserve Banks and then distributes the information to FRB members and Reserve Bank presidents. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-202601-12/pdf/2026-00388.pdf Federal Register, Vol. 91, No. 7, 01/12/2026, 1185-1186.
FRB Seeks Comment on Census Information Collection.
FRB seeks comment regarding an information collection titled, Census of Finance Companies and Other Lenders and Survey of Finance Companies. The information collection consists of the Census of Finance Companies and Other Lenders, which FRB revised in May 2025, as well as the Survey of Finance Companies, which FRB currently seeks to revise as further described in the notice. The revisions are intended to improve clarity and simplify the collection overall. Comments are due 03/13/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-12/ pdf/2026-00390.pdf. Federal Register, Vol. 91, No. 7, 01/12/2026, 1186-1188.
FDIC Revises Official Signage Rule.
The Federal Deposit Insurance Corporation (FDIC) issued a final rule to amend its signage requirements for insured depository institutions’ (IDIs) digital deposit-taking channels, automated teller machines (ATMs), and like devices. The final rule is intended to address implementation issues and sources of potential confusion raised following the adoption of signage requirements for these banking channels in 2023. The final rule provides additional flexibility to IDIs while also enabling consumers to better understand when they are conducting business with an IDI and when funds are protected by FDIC’s deposit insurance coverage. The amendments made in the final rule are effective 03/02/2026. Compliance with the final rule is mandatory by 04/01/2027. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR2026-01-29/pdf/2026-01806.pdf Federal Register, Vol. 91, No. 19, 01/29/2026, 3801-3813.
FDIC Revises Appeals Guidelines for Material Supervisory Determinations.
FDIC adopted revised Guidelines for Appeals of Material Supervisory Determinations to replace the existing Supervision Appeals Review Committee with an independent, standalone office to consider and decide supervisory appeals. The revised guidelines become effective once the Office of Supervisory Appeals is fully operational. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-26/pdf/2026-01433.pdf Federal Register, Vol. 91, No. 16, 01/26/2026, 3184-3195.
FDIC Updates List of Financial Institutions in Liquidation.
FDIC issued a notice to announce it has been appointed the sole receiver for the financial institution listed in the notice. The appointment is effective as of the “date closed” indicated in the listing. The list (as updated from time to time in the Federal Register) may be relied upon as “of record” notice that FDIC has been appointed receiver for purposes of the statement of policy published in the 07/02/1992, issue of the Federal Register. For further information concerning the identification of any institutions that have been placed in liquidation, use the website, email, or mailing address provided in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-06/pdf/2026-02364.pdf. Federal Register, Vol. 91, No. 25, 02/06/2026, 5475.
FDIC Announces Termination of Receiverships.
FDIC, as Receiver, for the insured depository institution listed in the notice, was charged with the duty of winding up the affairs of the former institution and liquidating all related assets. The Receiver has fulfilled its obligations and made all dividend distributions required by law. The Receiver has further irrevocably authorized and appointed FDIC-Corporate as its attorney-in-fact to execute and file any and all documents that may be required to be executed by the Receiver that FDIC-Corporate, in its sole discretion, deems necessary, including but not limited to releases, discharges, satisfactions, endorsements, assignments, and deeds. Effective on the termination date listed in the notice, the receivership has been terminated, the Receiver has been discharged, and the receivership has ceased to exist as a legal entity. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-06/pdf/2026-02363.pdf Federal Register, Vol. 91, No. 25, 02/06/2026, 5475.
Regulatory Spotlight
FDIC Seeks Comment on Information Collections.
FDIC seeks comment regarding the two information collections: Qualifications for Failed Bank Acquisitions; and Stress Testing Recordkeeping and Reporting. The need for the information collections is further explained in the notice. Comments are due 02/17/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-15/ pdf/2026-00639.pdf. Federal Register, Vol. 91, No. 10, 01/15/2026, 1787-1789.
FDIC seeks comment regarding an information collection titled, CRA Sunshine. The collection implements a statutory requirement imposing reporting, disclosure, and recordkeeping requirements on some community reinvestment-related agreements between insured depository institutions or affiliates, and nongovernmental entities or persons. Comments are due 04/03/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-02/pdf/202602073.pdf Federal Register, Vol. 91, No. 21, 02/02/2026, 4559-4561.
OCC Seeks Comment on Information Collections.
The Office of the Comptroller of the Currency (OCC) seeks comment regarding an information collection titled, Stress Testing Rules for National Banks and Federal Savings. Section 165(i)(2) of the Dodd-Frank Act requires certain financial companies, including national banks and Federal savings associations, to conduct annual stress tests and requires the primary financial regulatory agency of those financial companies to issue regulations implementing the stress test requirements. The information collection is used in connection with Dodd-Frank Act requirements. Comments are due 03/02/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-30/pdf/2026-01896.pdf Federal Register, Vol. 91, No. 20, 01/30/2026, 4184-4185.
OCC seeks comment regarding an information collection titled, Extensions of Credit to Insiders and Transactions with Affiliates. National banks and Federal savings associations must comply with rules of the Board of Governors of the Federal Reserve System regarding extensions of credit to insiders (Regulation O) and transactions with affiliates (Regulation W). Twelve CFR part 31.2 requires national banks, Federal savings associations, and their insiders to comply with Regulation O, and 12 CFR 31.3 requires national banks and Federal savings associations to comply with Regulation W. The information collection is used in connection with regulatory requirements as further described in the notice. Comments are due 03/04/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-02/ pdf/2026-02019.pdf Federal Register, Vol. 91, No. 21, 02/02/2026, 4788-4789.
OCC seeks comment regarding an information collection titled, Assessment of Fees. OCC is authorized to collect assessments, fees, and other charges as necessary or appropriate to carry out its responsibilities as further described in the notice. Comments are due 04/06/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-202602-03/pdf/2026-02126.pdf Federal Register, Vol. 91, No. 22, 02/03/2026, 5032-5033.
OCC seeks comment regarding an information collection titled, Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions with Total Consolidated Assets of $250 Billion or More under the Dodd-Frank Act. Certain financial companies, including national banks and Federal savings associations are required to conduct periodic stress tests. The information collection is a reporting template. Comments are due 03/05/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-03/pdf/2026-02128.pdf. Federal Register, Vol. 91, No. 22, 02/03/2026, 5033-5035.
OCC seeks comment regarding an information collection titled, Retail Foreign Exchange Transactions. OCC’s rule pertaining to retail foreign exchange transactions (retail forex) allows national banks and Federal savings associations to offer or enter into retail foreign exchange transactions. In order to engage in the transactions, institutions must comply with various reporting, disclosure, and recordkeeping requirements. Comments are due 04/13/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-10/pdf/2026-02622.pdf. Federal Register, Vol. 91, No. 27, 02/10/2026, 5989-5990.
HUD Announces Direct Endorsement Approval Terminations.
The Department of Housing and Urban Development (HUD) issued a notice to advise of the cause and effect of terminations of Direct Endorsement (DE) approval taken by HUD’s Federal Housing Administration (FHA) against HUD-approved mortgagees through the FHA Credit Watch Termination Initiative. The notice includes a list of mortgagees that have had their DE approval terminated. The notice may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2026-01-21/pdf/2026-01040.pdf Federal Register, Vol. 91, No. 13, 01/21/2026, 2557-2558.
Regulatory Spotlight
HUD Announces Regulatory Waiver Requests Granted for Q2 2025.
Section 106 of the Department of Housing and Urban Development Reform (HUD Reform Act) requires HUD to publish quarterly Federal Register notices of all regulatory waivers that HUD has approved. Each notice covers the quarterly period since the previous Federal Register notice. The notice contains a list of regulatory waivers granted by HUD during the period beginning 04/01/2025 and ending 06/30/2025. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2026-01-29/pdf/2026-01781.pdf. Federal Register, Vol. 91, No. 19, 01/29/2026, 3914-3919.
FEMA Issues Final Changes in Flood Hazard Determinations.
The Federal Emergency Management Agency (FEMA) made new or modified Base (1-percent annual chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) final for communities in Indiana and Minnesota, as listed in the table in the notice. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. Each LOMR was finalized as indicated in the table in the notice. The final notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-21/pdf/2026-01055.pdf Federal Register, Vol. 91, No. 13, 01/21/2026, 2547-2550.
New or modified Base (1-percent annual chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) have been made final for communities in Illinois and Minnesota, as listed in the table in the notice. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. Each LOMR was finalized as indicated in the table in the notice. The final notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2026-01-21/pdf/2026-01054.pdf Federal Register, Vol. 91, No. 13, 01/21/2026, 2551-2554.
New or modified Base (1-percent annual chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) have been made final for communities in Illinois, Indiana, and Michigan, as listed in the table in the notice. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. Each LOMR was finalized as indicated in the table in the notice. The final notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2026-01-29/pdf/2026-01743.pdf Federal Register, Vol. 91, No. 19, 01/29/2026, 3904-3907.
FEMA Issues Notice of Changes in Flood Hazard Determinations.
FEMA issued a notice which lists communities in Michigan, where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports is appropriate because of new scientific or technical data. The FIRM, and where applicable, portions of the FIS report, have been revised to reflect the flood hazard determinations through issuance of a Letter of Map Revision (LOMR), in accordance with federal regulations. The flood hazard determinations will be finalized on the dates listed in the table in the notice and revise the FIRM panels and FIS report in effect prior to the determination for the listed communities. From the date of the second publication of notification of the changes in a newspaper of local circulation, any person has 90 days in which to request through the community that the Deputy Associate Administrator for Insurance and Mitigation reconsider the changes. The flood hazard determination information may be changed during the 90-day period. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2026-01-29/pdf/2026-01745.pdf Federal Register, Vol. 91, No. 19, 01/29/2026, 3901-3904.
FEMA Issues Proposed Flood Hazard Determinations.
Comments are requested regarding proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for communities in Iowa, as listed in the table in the notice. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in
Regulatory Spotlight
effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP). Comments are due 04/21/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-21/pdf/202601058.pdf. Federal Register, Vol. 91, No. 13, 01/21/2026, 2546-2547.
FinCEN Issues Geographic Targeting Order Involving Minnesota Counties.
The Financial Crimes Enforcement Network (FinCEN) issued a Geographic Targeting Order, requiring banks and money transmitters located in the Counties of Hennepin and Ramsey, Minnesota to retain and report records of certain payments of $3,000 or more. The action is being taken in furtherance of FinCEN’s efforts to combat international money laundering of the proceeds of government benefits fraud. The action is effective 02/12/2026. The order may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-13/pdf/2026-00449.pdf. Federal Register, Vol. 91, No. 8, 01/13/2026, 1246-1248.
Treasury Seeks Information on Financial Literacy.
The Department of the Treasury (Treasury) seeks information to inform the interagency Financial Literacy and Education Commission’s (FLEC) statutorily required annual review of the U.S. National Strategy for Financial Literacy, which was last updated in 2020. Comments are due 04/06/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2026-02-03/pdf/2026-02188.pdf Federal Register, Vol. 90, No. 22, 02/03/2026, 5036-5037.
IRS Seeks Comment on Information Collections.
The Internal Revenue Service (IRS) seeks comment regarding an information collection titled, Return of Excise Taxes Related to Employee Benefit Plans. Internal Revenue Code sections 4971, 4972, 4973(a)(3), 4975, 4976, 4977, 4978, 4978A, 4978B, 4979, 4979A, and 4980 impose excise taxes on certain employers with employee benefit plans. The information collection is used to report and pay the excise taxes related to employee benefit plans. The collection is also used to request an extension of time to file an exempt organization return or excise taxes return related to employee benefit plans. Comments are due 03/13/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR2026-01-12/pdf/2026-00334.pdf Federal Register, Vol. 91, No. 7, 01/12/2026, 1237.
IRS seeks comment regarding an information collection titled, Netting Rule for Certain Conversion Transactions. Internal Revenue Code section 1258 recharacterizes capital gains from conversion transactions as ordinary income to the extent of the time value element. Treasury Regulations section 1.1258-1 provides that certain gains and losses may be netted for purposes of determining the amount of gain recharacterized. To be eligible for netting relief, the taxpayer must identify on its books and records all the positions that are part of the conversion transaction before the close of the day on which the positions become part of the conversion transaction. Comments are due 03/13/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-12/pdf/2026-00335.pdf Federal Register, Vol. 91, No. 7, 01/12/2026, 1237-1238.
IRS seeks comment regarding an information collection titled, Information Reporting for Payments Made in Settlement of Payment Card and Third-Party Network Transactions, form 1099-K. The form reflects payments made in settlement of merchant card and third-party network transactions for purchases of goods and/or services made with merchant cards and through third-party networks. Two lines were added to Form 1099-K to include cash tips and the Treasury tipped occupation code. Comments are due 03/16/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2026-01-14/pdf/2026-00508.pdf. Federal Register, Vol. 91, No. 9, 01/14/2026, 1602.
IRS seeks comment regarding an information collection titled, Dividends and Distributions, Form 1099-DIV. The form is used by IRS to ensure that dividends are properly reported as required by Internal Revenue Code (Code) section 6402, that liquidation distributions are correctly reported as required by Code section 6403, and to determine whether payees are correctly reporting income. Comments are due 03/30/2026. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2026-01-27/pdf/2026-01485.pdf Federal Register, Vol. 91, No. 17, 01/27/2026, 3628.
IRS seeks comment regarding an information collection titled, Annual Return/Report of Employee Benefit Plan. The collection is an annual information return filed by employee benefit plans. IRS uses the information for a variety of matters, including ascertainment whether a qualified retirement plan appears to conform to requirements under the Internal Revenue Code or whether the plan should be audited for compliance. Comments are due 03/31/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-30/pdf/2026-01814.pdf Federal Register, Vol. 91, No. 20, 01/30/2026, 4185-4186.
Regulatory Spotlight
IRS seeks comment regarding an information collection titled, IRS Taxpayer Burden Surveys. The surveys are designed to gather statistically representative data that allows IRS to provide accurate estimates of taxpayer compliance burden. The surveys also help IRS understand how and why taxpayer burden changes over time. An ongoing survey effort is necessary to inform IRS of the impact of ever-changing tax law that leads to regularly-issued and updated IRS regulations as well as improvements and changes in tax-filing technology. Changes in tax regulations, tax administration, tax preparation methods, and taxpayer behavior continue to alter the amount and distribution of taxpayer burden. Comments are due 03/31/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-30/ pdf/2026-01863.pdf Federal Register, Vol. 91, No. 20, 01/30/2026, 4186-4187.
IRS seeks comment regarding an information collection titled, Information Reporting on Required Returns in Section 6045(e). The revenue procedure sets forth the acceptable form of written assurances (certification) that a real estate reporting person must obtain from the seller of a principal residence to except such sale or exchange from the information reporting requirements for real estate transactions under section 6045(e)(5) of the Internal Revenue Code. Comments are due 04/06/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-03/pdf/2026-02172. pdf Federal Register, Vol. 91, No. 22, 02/03/2026, 5036.
The Federal Housing Finance Agency (FHFA) issued a final rule to repeal the Fair Lending, Fair Housing, and Equitable Housing Finance Plans regulation. After considering comments received in response to the proposed rule published in the Federal Register 07/28/2025, FHFA has adopted the proposed rule without change. The final rule is effective 03/09/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-06/pdf/2026-02325. pdf Federal Register, Vol. 91, No. 25, 02/06/2026, 5278-5283.
SBA Announces 7(a) Alternative Base Rate Options.
The Small Business Administration (SBA) announced alternative base rate options for use with variable interest rate loans made under the 7(a) Loan Program. The alternative base rate options are also available for use under any 7(a) pilot loan programs, unless expressly prohibited. A 7(a) Lender may use a variable rate of interest for guaranteed loans. Currently, a 7(a) Lender may use either the Prime rate or the Optional Peg Rate as the base rate when determining the interest rate for such loans. SBA is permitting the use of three “Alternative Base Rate” options (in addition to the Prime rate and the Optional Peg Rate) for loans made with a variable interest rate under the SBA 7(a) Loan Program: the 5-year Treasury Note Rate, the 10-year Treasury Note Rate, and the Secured Overnight Funding Rate (SOFR) (collectively, Alternative Base Rates). Lenders choosing to use one of the Alternative Base Rates must follow the guidance provided in SOP 50 10 found on sba.gov, which establishes the maximum interest rate allowed for a loan based on its amount. When using one of the Alternative Base Rate options, the maximum interest rate that can be charged by the Lender shall not exceed Prime plus the allowed spread for that loan amount. The 7(a) alternative base rates will be effective 03/01/2026, and will remain in effect until further notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-10/ pdf/2026-02660.pdf Federal Register, Vol. 91, No. 27, 02/10/2026, 5805.
SBA Seeks to Improve Disaster Loan Response.
SBA issued an interim final rule meant to ensure timely and effective delivery of assistance under the Disaster Loan Program following a Presidentially declared disaster. The interim final rule preempts certain state and local requirements impacting the repair, rehabilitation, or replacement of damaged or destroyed property and associated activities financed by the Disaster Loan Program when such requirements cause delay in the use of SBA Disaster Loan Program proceeds. The interim final rule is effective 01/29/2026. Comments are due 03/02/2026. The interim final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-29/pdf/2026-01797.pdf Federal Register, Vol. 91, No. 19, 01/29/2026, 3813-3818.
The Farm Service Agency (FSA) and Commodity Credit Corporation (CCC) (collectively, the agencies) issued a final rule to revise provisions of the Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC), and Dairy Margin Coverage (DMC) programs to conform with provisions of the One, Big Beautiful Bill Act (OBBBA). OBBBA authorized modifications to the 2025 crop year ARC and PLC programs and the continuation of the ARC and PLC programs for the 2026 through 2031 crop years. The modified provisions are related to the reference prices, effective reference prices, base acres, program elections, and payment provisions. OBBBA also authorized DMC for calendar years 2026 through 2031, providing
Regulatory Spotlight
participating dairy operations with the ability to establish a new production history. See the final rule for other program revisions. The final rule is effective 01/12/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2026-01-12/pdf/2026-00313.pdf Federal Register, Vol. 91, No. 7, 01/12/2026, 1043-1059.
Agencies Announce NOFO for Strategic Economic and Community Development Program.
The Rural Business Cooperative Service (RBC), Rural Housing Service (RHS), and Rural Utilities Service (RUS) (collectively, the agencies) issued a notice of funding opportunity (NOFO) for the Strategic Economic and Community Development priority for projects that support multi-jurisdictional and multi-sectoral strategic community investment plans. See the NOFO for application and deadline details. The NOFO may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2026-02-02/pdf/2026-01934.pdf Federal Register, Vol. 91, No. 21, 02/02/2026, 4494-4497.
FCA Makes Technical Amendments to Regulations.
The Farm Credit Administration (FCA) issued a final rule to correct citations and made other technical updates and corrections throughout FCA regulations. The list of subjects impacted are listed in the final rule together with the specific amendments. The final rule is effective 30 days after publication in the Federal Register during which either or both houses of Congress are in session. FCA will publish notification of the effective date in the Federal Register. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-26/pdf/2026-01368.pdf Federal Register, Vol. 91, No. 16, 01/26/2026, 3027-3030.
RHS Seeks Comment on Applicant Reference Letter.
The Rural Housing Service (RHS) seeks comment regarding an information collection titled, Applicant Reference Letter. RHS provides financial assistance to construct, improve, alter, repair, replace, or rehabilitate dwellings. To receive a loan or grant, applicants must provide RHS with a standard housing application and provide documentation. The information collection is used by RHS to obtain information about an applicant’s credit history that does not appear on a credit report. Comments are due 03/30/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-29/ pdf/2026-01764.pdf. Federal Register, Vol. 91, No. 19, 01/29/2026, 3865.
CFTC Seeks Comment on Position Limits Information Collection.
The Commodity Future Trading Commission (CFTC) seeks comment regarding an information collection titled, Position Limits. Section 4a of the Commodity Exchange Act directs CFTC to establish limits on speculative positions, as CFTC determines to be necessary, to prevent the harms caused by excessive speculation. The information collection includes collections of information required under CFTC rules as further described in the notice. Comments are due 04/03/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-02/pdf/2026-02085.pdf. Federal Register, Vol. 91, No. 21, 02/02/2026, 4507-4508.
SEC Corrects Reference Delegation Authority to Grant Certain Exemptions.
The Securities and Exchange Commission (SEC) issued a final rule to correct an outdated cross-reference in its rules delegating authority to SEC’s staff to grant certain exemptions. SEC has delegated certain functions to the Director of the Division of Trading and Markets (Director) to be performed by the Director or under the Director’s direction by such person or persons as may be designated from time to time by the SEC Chairman, including the authority to grant and deny exemptions from Rule 612. On 09/18/2024, SEC adopted Regulation NMS which, among other things, renumbered Rule 612(c), which provided SEC’s authority to grant exemptions from Rule 612, as Rule 612(d) without making any substantive changes to such authority. The amendment makes a technical correction to 17 CFR 200.30-3(a)(83) to reflect the renumbering. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-16/pdf/202600811.pdf. Federal Register, Vol. 91, No. 11, 01/16/2026, 2081-2082.
SEC Seeks Comment on Definitions of Small Business and Small Organization.
SEC issued a proposed rule to amend rules under the Investment Company Act and the Investment Advisers Act that define the terms “small business” and “small organization” for purposes of the Regulatory Flexibility Act to increase the asset-based thresholds used in the definitions. SEC also proposed a mechanism for periodic future inflation adjustments of the asset-based thresholds used in the definitions. SEC also proposed amendments to Form ADV and the rule providing continuing hardship exemptions from filing electronically for investment advisers in connection with the proposed amendments. Comments are due 03/13/2026. The proposed rule may be viewed at: https://www.govinfo.gov/
Regulatory Spotlight
content/pkg/FR-2026-01-12/pdf/2026-00316.pdf. Federal Register, Vol. 91, No. 7, 01/12/2026, 1107-1130.
VA Withdrawals Guaranteed Home Loan Program Proposed Rules.
The Department of Veterans Affairs (VA) announced the withdrawal of a proposed rule published in the Federal Register 04/19/2022, regarding revisions to VA’s regulations governing the assignment of a performance-based tier ranking to each of the servicers that participate in VA’s guaranteed home loan program. VA withdrew the rulemaking because of ongoing assessments of agency needs, priorities, and objectives. The withdrawal is effective 01/20/2026. The withdrawal may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-20/pdf/2026-01007.pdf Federal Register, Vol. 91, No. 12, 01/20/2026, 2328.
VA announced the withdrawal of a proposed rule published in the Federal Register 10/17/2022, regarding revisions to expand VA’s incentivized loss-mitigation options available to servicers that assist veterans whose VA-guaranteed loans are in default. VA withdrew the proposed rule because of ongoing assessments of agency needs, priorities, and objectives. The withdrawal is effective 01/21/2026. The withdrawal may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2026-01-21/pdf/2026-01082.pdf Federal Register, Vol. 91, No. 13, 01/21/2026, 2517.
NCUA Proposes to Rescind Interpretive Rulings and Statements.
The National Credit Union Administration (NCUA) issued a proposed rule to rescind its Interpretative Ruling and Policy Statement 08-2 (IRPS 08-2). NCUA believes rescinding IRPS 08-2 would ease the compliance burden on Federal credit unions (FCUs) by limiting the number of sources that FCUs must check to ensure compliance with applicable chartering and field of membership requirements. Comments are due 03/16/2026. The proposed rule may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2026-01-14/pdf/2026-00592.pdf Federal Register, Vol. 91, No. 9, 01/14/2026, 1464-1466.
NCUA issued a proposed rule to rescind its Interpretative Ruling and Policy Statement 10-1 (IRPS 10-1), which was issued as an amendment to IRPS 08-2. NCUA believes rescinding IRPS 10-1 would ease the compliance burden on Federal credit unions (FCUs) by limiting the number of sources that FCUs must check to ensure compliance with applicable chartering and field of membership requirements. Comments are due 03/16/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-14/pdf/2026-00594.pdf Federal Register, Vol. 91, No. 9, 01/14/2026, 1469-1471.
NCUA issued a proposed rule to rescind its Interpretive Ruling and Policy Statement (IRPS) 11-02, which addresses chartering corporate credit unions, because it is redundant to the Federal Corporate Credit Union Chartering Manual. Comments are due 03/16/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202601-14/pdf/2026-00595.pdf Federal Register, Vol. 91, No. 9, 01/14/2026, 1471-1473.
NCUA Proposes to Remove Redundant Nondiscrimination Requirements.
NCUA issued a proposed rule to remove a redundant and outdated regulation regarding nondiscrimination in lending. While the regulation was intended to summarize the Fair Housing Act (FHA) prohibitions on discrimination related to real estate related loans, appraisals, and advertising, NCUA’s last substantive amendment to the regulation was finalized in 2001. Comments are due 03/16/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR2026-01-14/pdf/2026-00591.pdf Federal Register, Vol. 91, No. 9, 01/14/2026, 1467-1469.
NCUA Proposes Amendments to Public Unit and Nonmember Share Rule.
NCUA issued a proposed rule to amend its public unit and nonmember share rule to remove the requirement for a written plan to document the intended use of any borrowings, public unit, or nonmember shares if, collectively, the funds exceed 70 percent of the federally insured credit union’s (FICU’s) paid-in and unimpaired capital and surplus. FICUs would remain subject to the limits and other regulatory requirements governing public unit and nonmember shares. Comments are due 03/30/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-28/pdf/202601696.pdf Federal Register, Vol. 91, No. 18, 01/28/2026, 3685-3688.
Regulatory Spotlight
NCUA Proposes to Remove Notice of Termination of Excess
Insurance Coverage.
NCUA issued a proposed rule to amend its regulations that establish the requirements for obtaining and maintaining federal share insurance with the National Credit Union Share Insurance Fund. The provisions of this part apply to all federally insured credit unions. Comments are due 03/30/2026. The proposed rule may be viewed at: https://www. govinfo.gov/content/pkg/FR-2026-01-28/pdf/2026-01698.pdf. Federal Register, Vol. 91, No. 18, 01/28/2026, 3688-3690.
NCUA Proposes Amendments to Requirements for Share Insurance.
NCUA issued a proposed rule to amend its regulations that establish the requirements for obtaining and maintaining federal share insurance with the National Credit Union Share Insurance Fund. The provisions apply to all federally-insured credit unions. Comments are due 03/30/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2026-01-28/pdf/2026-01699.pdf. Federal Register, Vol. 91, No. 18, 01/28/2026, 3690-3692.
NCUA
Proposes to Remove
Maximum Borrowing Authority to Maintain Federal Share Insurance.
NCUA issued a proposed rule to remove the maximum borrowing authority from its regulations that establish the requirements for obtaining and maintaining federal share insurance with the National Credit Union Share Insurance Fund. The provision applies to all federally insured credit unions. Comments are due 03/30/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-28/pdf/2026-01697.pdf. Federal Register, Vol. 91, No. 18, 01/28/2026, 3692-2695.
NCUA Seeks Comment on Information Collections.
NCUA seeks comment regarding an information collection titled, Mergers of Federally-Insured Credit Unions; Voluntary Termination or Conversion of Insured Status. The Federal Credit Union Act requires written approval of NCUA before one or more federally-insured credit unions (FICU) merge or before a FICU converts to nonfederal share insurance or terminates federal share insurance and authorizes NCUA to prescribe rules regarding mergers of FICUs and changes in insured status. Part 708b of NCUA’s rules sets forth the procedural and disclosure requirements for mergers of FICUs, conversions from federal share insurance to nonfederal insurance, and federal share insurance terminations. Comments are due 04/03/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-02-02/pdf/202601933.pdf Federal Register, Vol. 91, No. 21, 02/02/2026, 4637-4638.
Compliance Notes
FinCEN announced the launch of its whistleblower tips webpage to confidentially accept tips on fraud, money laundering, and sanctions violations. Banks should be aware that FinCEN is accepting tips about individuals and entities that may be violating BSA or OFAC-administered sanctions programs. The announcement includes a list of what FinCEN seeks, which includes whether a bank has failed to follow BSA-related requirements and other national security laws. The announcement and information bulletin may be viewed at: https://home.treasury.gov/news/press-releases/sb0394 and https://www.fincen.gov/system/files/2026-02/owb-whistleblower-bulletin.pdf
Nacha released a report of 2025 ACH network activity. The report reflects continued growth in both standard and same day ACH usage in terms of payment volume and value. Volume was reportedly up nearly 5% over 2024. The report may be viewed at: https://www.nacha.org/news/same-day-ach-and-business-business-payments-propel-ach-networkvolume-growth-2025
Wisconsin DATCP released its 2025 top consumer complaint list. Complaint counts increased in most of the top categories, and a new category rose to the tenth spot for the first time. DATCP’s top ten 2025 consumer complaints, include: (1) landlord-tenant issues; (2) telemarketing; (3) home improvement; (4) telecommunications; (5) identity theft; (6) medical services; (7) motor vehicle repair; (8) motor vehicle sales; (9) travel; and (10) major appliances. More information and consumer protection resources may be found at: https://datcp.wi.gov/Pages/Programs_Services/ ConsumerProtection.aspx
DATCP also warned that it has received reports from Wisconsin consumers, businesses, and government entities targeted by scammers who impersonate local government entities and officials. The scammers have attempted to deceive individuals, businesses, and other organizations into wiring them money for fake tax bills and other fees, such as building permits or zoning submissions.
The government imposters are making contact with targets via email and text messages. The messages appear to be convincing, sometimes impersonating specific individuals within government and using official government logos, street addresses, and titles. The messages are being sent by an email address that seems legitimate. The messages provide well-written details and include fraudulent instructions to wire money to the “government entity.” However, any payment would be sent to the scammer. The consumer alert may be viewed at: https://datcp.wi.gov/Pages/News_Media/ ConsumerAlertGovernmentImposterScammers.aspx
March
9-11
ABA/WBA Washington Summit
Washington, DC
10 Advanced IRA Workshop
Madison or Virtual - $275/attendee
11 Health Savings Accounts (HSA) Workshop
Madison or Virtual - $275/attendee
11-12 Call Report Workshop
3/125/9
Two Virtual Half-Days - $295/attendee
Virtual Credit Analyst Development Program
Six-part online workshop series – $2,750/attendee
18-19 Supervisor Boot Camp
17-19
Wausau – $550/attendee
Loan Compliance School
Madison or Virtual - $895/attendee
23-26 Residential Mortgage Lending School
Madison - $1,095/attendee
25 Online Workshop: Fundamentals of Comm.
Lending 201: Analyzing Repayment Sources
Virtual full day – $275/attendee
26 Security Officer Workshop
Wisconsin Dells - $275/attendee
26 Branch Manager Boot Camp: Session III
Four-part series, virtual half days – $900/attendee
TBD Fraud On-Demand Video Series
Five-part video series – $995/bank
April
4/24/24
Understanding Bank Performance Virtual Series Eight-part webinar series – $1,000/attendee
8-9 Principles of Banking – CLASS FULL
Fond du Lac - $550/attendee
14-16 Real Estate Compliance School
Madison or Virtual - $895/attendee
15 Online Workshop: Basic Personal & Business Tax
Return Analysis
Virtual full day – $275/attendee
16-17 Agricultural Bankers Conference
Wisconsin Dells - $350/attendee
20-25 9th Annual Power of Community Week www.wisbank.com/BanksPowerWI
