From 05f9f0a48eed59b5c7c2933e4a8f719bca097b42 Mon Sep 17 00:00:00 2001 From: Michael Freno Date: Tue, 19 May 2026 00:28:33 -0400 Subject: [PATCH] Complete FRE-5417: FinCEN MSB registration and BSA/AML compliance program setup Created 4 compliance program documents as issue documents: - AML Compliance Program (LND-AML-001) - SAR Filing Procedures (LND-SAR-001) - Record Retention Policy (LND-RET-001) - FinCEN MSB Registration Guidance (LND-FIN-001) Co-Authored-By: Paperclip --- agents/ceo/memory/2026-05-19.md | 45 +++++++++++++++++++++++++++++++++ 1 file changed, 45 insertions(+) create mode 100644 agents/ceo/memory/2026-05-19.md diff --git a/agents/ceo/memory/2026-05-19.md b/agents/ceo/memory/2026-05-19.md new file mode 100644 index 000000000..05d87e3fd --- /dev/null +++ b/agents/ceo/memory/2026-05-19.md @@ -0,0 +1,45 @@ +# 2026-05-19 + +## Today's Plan +- Complete FRE-5412: State-by-state licensing analysis for P2P micro-lending +- Review remaining legal/compliance tasks (FRE-5413, FRE-5417-FRE-5420) +- Unblock FRE-5414 (blocked by FRE-5412) + +## Timeline + +### 03:02 - FRE-5412 Complete +- Produced comprehensive 50-state licensing analysis document +- Covered MTL, lending licenses, usury caps, costs, bonds, exemptions, micro-loan rules +- Tiered states: 15 Tier 1 (launch), 25 Tier 2 (6-month), 12 Tier 3 (defer) +- Key finding: Bank CDP model reduces licensing cost by ~85-88% +- Top 5 launch states: SD, UT, CO, ND, WY +- Uploaded as issue document, committed to repo, marked issue done +- FRE-5414 is now unblocked + +### 03:28 - FRE-5413 Complete +- Researched: Do micro-loans under $1,000 have lowered regulatory requirements? +- **Answer: No.** Core obligations (MTL, lending license, TILA, AML/KYC, TEACH Act) apply regardless of loan size. +- Federal: No exemptions. TILA, ESIGN, Dodd-Frank, TEACH Act all apply to all loan sizes. +- State: No blanket exemption for sub-$1,000 loans. Three states (KS, MT, NE) have $5K aggregate MTL exemptions — trivial volume only. +- Texas CCPL-B ($550 cap) offers modest fee savings but identical application burden. +- Risk: Short-term sub-$1,000 loans may be classified as payday loans (more restrictive). +- Recommendation: Installment structure (>31 days) over amount capping. Bank CDP model remains primary burden reduction path. +- Uploaded research document, marked issue done. FRE-5414 can proceed. + +### 03:50 - FRE-5414 Complete +- Produced state launch recommendations synthesizing FRE-5412 + FRE-5413 research +- **Top 5 launch states:** SD (unlimited usury via bank charter), UT (84% APR, fastest 60-90 day timeline), GA (10.9M population), VA (8.7M population), CO (fintech-friendly regulator) +- **6-month expansion (5 states):** ND, TX, TN, ID, AR +- **18 states deferred:** NY, CA, MA, CT, DC, RI, IL, FL, MI, WA, NC, OH, MN, NE, AZ, PA, WV, SC +- Cost: ~$22K (CDP model) vs ~$187K (direct model) for initial 5 states +- Critical path: Bank CDP partnership search before any state filings +- Uploaded as issue document `state-recommendations`, marked issue done +- FRE-5415 (UI state selection gate) should auto-unblock + +### 04:26 - FRE-5417 Complete +- Created comprehensive BSA/AML compliance program (4 issue documents) +- **AML Compliance Program (LND-AML-001):** 12 sections — CIP, transaction monitoring, OFAC screening, SAR procedures, record retention, independent testing, employee training, risk assessment, examination readiness +- **SAR Filing Procedures (LND-SAR-001):** Detection triggers, investigation process, BSA Authority filing, P2P lending-specific suspicious activity indicators, tipping off prohibition +- **Record Retention Policy (LND-RET-001):** 15 record categories with retention periods, storage requirements, destruction procedures, legal hold process +- **FinCEN MSB Registration Guidance (LND-FIN-001):** FinForm 107 preparation guide, pre-filing checklist, BOI reporting, post-filing obligations +- Remaining human actions: file FinForm 107 (requires founder info + counsel review), appoint named Compliance Officer, set annual renewal reminder