The financial compliance landscape is in constant motion, and staying ahead requires vigilance and strategic adaptation. Key insights from the recent Q2 2025 Compliance Conversation reveal that financial institutions must prioritize robust change management, stay current on operational requirements like deposit holds and flood insurance, and intensify their efforts in the ongoing battle against fraud and money laundering. For leaders from the boardroom to branch operations, understanding these shifts is not just about avoiding penalties, but about building a resilient and trustworthy institution.
The New Urgency for Regulatory Change Management
The Consumer Financial Protection Bureau’s (CFPB) decision to rescind 67 separate guidance documents signals a significant shift in supervisory priorities through an expanded use of executive orders. While the regulations themselves may not have changed, the withdrawal of long-standing advisory materials creates ambiguity and elevates risk. This makes a structured change management process more critical than ever.
Institutions must have a framework to help identify these changes, analyze their potential impact across all departments, assign clear responsibilities, and implement and test new procedures. The rescission of guidance, which spans everything from collections to deposit operations, demands a proactive review to help align institutional practices with current regulatory expectations, even when those expectations are less explicit.
Mastering Core Operational Compliance
Alongside high-level strategic shifts, fundamental operational compliance remained a key focus. Recent inflation-adjusted increases to Regulation CC deposit hold thresholds required immediate attention. Institutions updated their systems and policies to reflect the new dollar amounts, effective July 1, 2025. Crucially, clear and timely communication with consumer account holders is always mandatory, and any electronic notices needed must adhere to E-Sign Act requirements.
Similarly, flood insurance rules present a persistent and evolving risk. With recent updates to flood maps, properties not previously in a special flood hazard area may now require coverage. For commercial lenders, the requirement extends beyond the structure to include the contents of a building if they are taken as collateral, regardless of whether a security interest has been perfected. This necessitates a careful review of loan portfolios and collateral agreements to help maintain full compliance.
The Intensifying Fight Against Financial Crime
Fraud has now eclipsed drug trafficking as the primary source of illicit funds in the country, making fraud prevention and AML/CFT/BSA compliance a top institutional priority. Federal agencies are acknowledging the scale of the problem, particularly with check fraud, and are actively seeking industry feedback on collaborative solutions. This presents a valuable opportunity for financial institutions to contribute to shaping more effective fraud mitigation strategies.
At the same time, the regulatory toolkit for fighting financial crime is expanding. New designations under the FEND Off Fentanyl Act prohibit transactions with specific foreign entities involved in the opioid trade. FinCEN and the Financial Action Task Force (FATF) continue to update their lists of high-risk jurisdictions and entities, requiring constant monitoring. Compliance teams must make sure their screening processes are up to date to prevent engagement with these prohibited parties and to manage the risks associated with jurisdictions under increased scrutiny.
How Forvis Mazars Can Help
Navigating regulatory compliance isn’t something you have to do alone. Forvis Mazars is here to support you at every stage. Join our January 12, 2026 complimentary webinar for knowledgeable insights on the latest banking compliance regulations and best practices to help you prepare for what’s ahead. Plus, explore our archived “Q2 2025 Compliance Conversations” webinar for a deeper dive into these topics.