Weekly Fintech Focus

  • Federal financial regulators issue an RFI to better understand financial institution usage of AI models and its implications on current regulations.
  • CFPB rescinds policy statements that provided regulatory flexibility in response to pandemic challenges.
  • National Futures Association issues regulatory outsourcing guidance.
  • Lina Kahn announced as nominee for FTC commissioner position.
  • FinCEN Director meets with a number of groups to discuss SAR filing.
  • Prepared Remarks of FinCEN Director delivered at the Florida International Bankers Association AML Compliance Conference
  • CFPB faced many more consumer complaints in 2020 than in the past.
  • CSBS working with a number of states to develop a single fintech exam.
  • An earned wage access company settled allegations of its services causing bank overdraft and insufficient fund fees.
  • The UK FCA issues a feedback statement on open finance.

Continue Reading Fintech Week in Review: Week of April 2, 2021

Weekly Fintech Focus

  • In response to pandemic challenges, card networks agree to delay merchant fee hikes that would have taken place next month.
  • E-commerce activities continue to grow and are projected to reach $1 trillion in revenue by next year.
  • The BIS publishes a paper urging a global rethink on how to regulate big tech companies engaged in financial services to address systemic risk.
  • Fintech trade groups launch to address issues like financial inclusion and regulatory approaches to fintech engagement in the financial services industry.
  • Regulators issue the first enforcement action directly referencing a bank’s role in serving marijuana-related business customers.

Continue Reading Fintech Week in Review: Week of March 19, 2021

Weekly Fintech Focus

  • The CFPB issued an interpretive rule clarifying that sexual orientation and gender identity are protected classes under ECOA’s prohibition against sex discrimination.
  • The CFPB rescinded a policy statement issued last year that limited the CFPB’s enforcement efforts related to the abusiveness standard under UDAAP.

Continue Reading Fintech Week in Review: Week of March 12, 2021

Weekly Fintech Focus

  • The California DFPI issued new opinions on the scope of its money transmission laws, including the agent of the payee exemption, addressing virtual currency transactions, and pay-in/pay-out scenarios related to gaming.
  • Rohit Chopra, the nominee for the CFPB Director position, answered questions at his confirmation hearing.

Continue Reading Fintech Week in Review: Week of March 5, 2021

Weekly Fintech Focus

  • The FDIC appoints its first chief innovation officer.
  • The OCC issues a final rule to clarify the role of supervisory guidance.
  • The Biden CFPB issues its first enforcement action, alleging abusive and deceptive practices against an immigration bond company.
  • FATF is moving forward with issuing updated guidance on virtual assets and risk-based supervisory approaches.

Continue Reading Fintech Week in Review: Week of February 26, 2021

Weekly Fintech Focus

  • The UK published a report calling for the urgent regulation of BNPL products.
  • The OCC postponed publication of the Fair Access to Financial Services rule.
  • The Acting Director of the CFPB is putting a renewed emphasis on issues of racial equity with a push to enforce fair lending violations.
  • The new administration will take a fresh look at the recently finalized FHA disparate impact rule.
  • The Federal Reserve announced that its FedNow RTP service will be launched sooner than expected.

Continue Reading Fintech Week in Review: Week of February 5, 2021

Weekly Fintech Focus

  • A regulatory freeze imposed by the new administration puts controversial rulemakings on ice.
  • The CFPB finalizes its rule clarifying the role of supervisory guidance.
  • Federal banking regulators issue FAQs on SAR filing obligations.
  • The Federal Reserve continues to support the development of AI in financial services.
  • OCC Issues Ruling Permitting National Banks to Use Certain Blockchain Technologies
  • California issues proposed rules for sharing data on marijuana-related businesses to promote due diligence and KYC efforts.

Continue Reading Fintech Week in Review: Week of January 22, 2021

Weekly Fintech Focus

  • The California DFPI begins operating January 2021 and looks to regulate new industries.
  • The OCC finalizes its rule on fair access to financial services, prohibiting large banks from denying services to whole industries.
  • Federal banking regulators publish proposed rule to impose additional notification requirements for a broader range of computer-security incidents.

Continue Reading Fintech Week in Review: Week of January 15, 2021

Weekly Fintech Focus

  • FDIC issues an updated brokered deposit rule, creating new exceptions relevant to fintechs working with bank partners.
  • FDIC issues a final rule clarifying its expectations for ILC charter applications.
  • CFPB issues an advisory opinion on Special Purpose Credit Programs to clarify how creditors can offer these programs to disadvantaged groups.
  • CFPB grants access to its compliance assistance sandbox to an earned wage access company, which meets the CFPB’s recent guidance on such programs.
  • PayPal wins the first round in its efforts to throw out aspects of the CFPB’s prepaid rule, resulting in a court throwing out certain mandatory disclosures and the 30-day waiting period for digital wallets.
  • New York enacts second-in-nation law requiring disclosures for commercial purpose loans.
  • The CSBS goes to court again to stop the OCC from issuing a charter to a fintech company.

Continue Reading Fintech Week in Review: Week of January 8, 2021