The Latest in PPP, EIDL, FinCEN, Equifax Settlement

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To support Paycheck Protection Program forgiveness, credit union leaders can join the Credit Union National Association tomorrow (Friday) at 12:30 p.m. (Pacific) for a discussion with Sen. Kevin Cramer (R-ND), member of the Senate Banking Committee.

Cramer is lead sponsor of legislation to make PPP loan forgiveness easier and provide lenders with liability protection. He has asked to meet with credit union leaders to thank them for participating in the PPP and encourage support of his forgiveness legislation in the Senate.

To enhance security, CUNA is requiring a password to join. You will receive the password in your confirmation email and calendar appointment.

PPP Procedural Notice: Loan Forgiveness Decisions; Supporting Documentation; Requests for Forgiveness Payments to SBA
The U.S. Small Business Administration has issued a procedural notice to Paycheck Protection Program (PPP) lenders regarding the processes for submitting decisions on PPP borrower loan forgiveness applications to SBA, requesting payment of the forgiveness amount determined by the lender, and SBA loan forgiveness reviews and payment of the loan forgiveness amount determined by SBA.
 
The SBA Procedural Notice explains that SBA has partnered with a financial services technology provider, Goldschmitt-CRI, to make available a secure SaaS platform (the PPP Forgiveness Platform) to accept loan forgiveness decisions, supporting documentation, and requests for forgiveness payments. The PPP Forgiveness Platform is available only to PPP Lenders, not PPP borrowers. This platform makes available a user interface for lenders to upload required data and documentation, monitor the status of the forgiveness request, and respond to SBA in case of an inquiry or if SBA selects the loan for review.
 
SBA will post a link to the PPP Forgiveness Platform on its website. The PPP Forgiveness Platform will go live and begin accepting lender submissions on Aug. 10, subject to extension if any new legislative amendments to the forgiveness process necessitate changes to the system.

SBA Guidance on Identification, Reporting of Suspicious Activity in EIDL
The SBA has also issued Notice 5000-20037: Guidance Regarding Identification and Reporting of Suspicious Activity in the COVID-19 EIDL Loan Program. The purpose of this notice is to provide a brief overview of the COVID-19 assistance available under SBA’s Economic Injury Disaster Loan (EIDL) Program, including both advances (grants) and direct loans, and to alert depository financial institutions to the potential for suspicious activity related to COVID-19 EIDL funds deposited into business or personal accounts. This notice also provides points of contact at SBA for depository financial institutions to report suspicious activity in the COVID-19 EIDL loan program.
 
FinCEN Advisory on COVID-19 Cybercrime and Cyber-Enabled Crime
The Financial Crimes Enforcement Network (FinCEN) has issued an advisory to alert financial institutions to potential indicators of cybercrime and cyber-enabled crime observed during the COVID-19 pandemic. Many illicit actors are engaged in fraudulent schemes that exploit vulnerabilities created by the pandemic. This advisory contains descriptions of COVID-19-related malicious cyber activity and scams, associated financial red flag indicators, and information on reporting suspicious activity.
 
This advisory is intended to aid financial institutions in detecting, preventing, and reporting potential COVID19-related criminal activity. It is based on FinCEN’s analysis of COVID-19-related information obtained from Bank Secrecy Act (BSA) data, open source reporting, and law enforcement partners. You can read more here about FinCEN’s COVID-19-related information to detect, prevent, and report suspected illicit activity.
 
FinCEN also requests financial institutions reference this advisory in Suspicious Activity Report (SAR) field 2 (Filing Institution Note to FinCEN) and the narrative by including the following key term: “COVID19 - CYBER FIN-2020-A005” and select SAR field 42 (Cyber Event). Additional guidance on filing SARs appears near the end of the advisory.

Equifax Data Breach Settlement Update
Last week, the settlement administrator for the Equifax data breach settlement sent out packets containing information to make a claim under the settlement to eligible financial institutions. Eligible credit unions should have received this packet. If your credit union believes it is eligible and has not received the packet, you may email Maggie Ferron or the settlement administrator directly at info@equifaxfidatabreachsettlement.com (or 855-968-4292) so that a packet may be sent. Alternatively, all of the information and forms required to make a claim are available on the settlement website.
 
As a reminder, the deadline to file a claim is Dec. 31, 2020. Financial institutions eligible to make a claim and receive compensation are defined as: all financial institutions in the United States that issued Alerted on Payment Cards. “Alerted on payment cards” means any payment card (including debit or credit cards) that was identified as having been at risk as a result of the data breach in the following alerts or documents issued by Visa, MasterCard, Discover, or American Express: (i) in an alert in the MasterCard series ADC 004129-US-17 (e.g., ADC 004129-US-17-1, ADC 004129-US-17-2, ADC 004129-US-17-3); (ii) in an alert in the Visa series US-2017-0448-PA (e.g., US-2017-0448a-PA,  US-2017-0448b-PA,  US-2017-0448c-PA);  (iii)  in alert American Express Incident Number C1709012512; and (iv) in a similar notice issued by Discover, the recipients of which were identified by Discover in discovery in the Action.

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