Domestic CSBS Suit Challenging OCC Fintech Charter Dismissed For the second time, a federal judge has dismissed a suit brought by the Conference of State Bank Supervisors (“CSBS”) seeking to block the Office of the Comptroller of the Currency (“OCC”) from offering a national fintech banking charter. Judge Dabney Friedrich of the D.C. Circuit again … Continue Reading
CFPB fines company for allegedly deceiving customers The Consumer Financial Protection Bureau (“CFPB”) issued a consent order against a Texas money transmitter who communicated to customers that it would not be responsible for “errors made by banks or payment agents, or for any other reasons out of our control.” The company, Maxitransfers Corporation, focuses its … Continue Reading
U.S. Developments California Proposes Regulations to Implement New Disclosure Requirements for Commercial Financing Recently, the California Department of Business Oversight (“CA DBO”) issued proposed regulations to implement SB 1235, a 2018 law that, in certain situations, requires consumer-like disclosures for certain commercial financing transactions. The law has a few notable exemptions, including depository institutions, financings … Continue Reading
U.S. Developments Federal Reserve to Build Real-Time Payments System After years of speculation, the Federal Reserve announced this week it will create a real-time payments system, which it expects to be live by 2023 or 2024. The system, the FedNow Service, was announced by Federal Reserve Governor Lael Brainard during a speech at the Federal … Continue Reading
U.S. Developments FinCEN and Others Issue Joint Statement on BSA/AML Examinations The Financial Crimes Enforcement Network (FinCEN) and several other federal banking regulators, including the Federal Deposit Insurance Corporation, National Credit Union Administration, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve, issued a joint statement on … Continue Reading
U.S. Developments Regulatory Developments House Task Force Looks to Allow Alternative Data for Credit Scoring A newly formed U.S. House of Representatives task force, the Financial Technology Task Force, held a hearing this week to discuss a proposed bill that would allow new types of data to appear on consumer credit reports, including items like … Continue Reading
FDIC Settles Payday Lending Lawsuit and Issues Summarizing Policy Statement On May 22, the Federal Deposit Insurance Corporation (“FDIC”) announced that it had resolved the litigation of Advance America et al. v. FDIC et al. in the U.S. District Court for the District of Columbia. In that case, the plaintiffs alleged that the FDIC and … Continue Reading
CFPB Proposes Changes to Debt Collector Rules On May 7, 2019, the Consumer Financial Protection Bureau (“CFPB”) detailed a plan to update the Fair Debt Collection Practices Act. The proposed rule would reduce the number of phone calls collectors can make to debtors, while providing clarity as to how collectors can use other communication methods, … Continue Reading
U.S. Developments Regulatory Updates OCC Seeks Comments on Proposed Innovation Pilot Program The Office of the Comptroller of the Currency (“OCC”) is soliciting public comment on its proposed Innovation Pilot Program. Similar to state-level regulatory sandbox models, the proposed program would allow OCC-supervised financial institutions, including those working with third-party vendors, to apply to test … Continue Reading
FinTech Issues Discussed at SEC Speaks Conference At Practicing Law Institute’s annual SEC Speaks conference, SEC leadership and staff showcased the agency’s 2018 successes and outlined upcoming initiatives. Highlights in the cryptocurrency and FinTech industries included the SEC’s analytical framework for digital assets, published last week by the SEC’s Strategic Hub for Innovation and Financial … Continue Reading
U.S. Developments Regulatory Updates New Rules for Prepaid Cards, Digital Wallets, and P2P Transfer Apps Become Effective As reported in this blog last year, the U.S. Consumer Financial Protection Bureau (“CFPB”) created a final rule implementing the Electronic Fund Transfer Act (“Regulation E”) and the Truth in Lending Act (“Regulation Z”). Originally released in October … Continue Reading
Regulatory Fed Board Delays New Same Day ACH Processing Window Until March 2021 The effective date of the new same-day Automated Clearing House (“ACH”) processing window (which would expand the end-of-day deadline to originate same-day transactions by two hours to 4:45 p.m. ET (1:45 p.m. PT)) has been deferred by six months to March 19, … Continue Reading
The International Swaps and Derivatives Association (ISDA) has published the first in a series of guidelines for what it colloquially refers to as “smart derivatives contracts” (the Guidelines).* A smart derivatives contract is a derivative that incorporates software code to automate aspects of the derivative transaction and operates on a distributed ledger, such as a … Continue Reading
U.S. Developments Regulatory Updates FinCEN Issues Advisory on FATF’s Updated Recommendations On October 31, FinCEN published an advisory on the international Financial Action Task Force’s (FATF’s) updated list of jurisdictions with serious regulatory deficiencies in anti-money laundering and combatting the financing of terrorism (AML/CFT). The advisory focused on North Korea (DPRK) and Iran, and FinCEN … Continue Reading
International Developments Policy Updates IMF and World Bank Launch Bali FinTech Agenda On October 11, 2018, the International Monetary Fund (“IMF”) and the World Bank Group launched the Bali FinTech Agenda, “a set of 12 policy elements aimed at helping member countries to harness the benefits and opportunities of rapid advances in financial technology that … Continue Reading
On October 3, 2018, a group of federal bank regulators and FinCEN announced in a joint statement that banks and credit unions could collaborate and share resources to manage their Bank Secrecy Act (“BSA”) and anti-money laundering (“AML”) obligations. A collaborative arrangement does not modify or abrogate any of the bank’s BSA/AML obligations, and the … Continue Reading
The following is a summary of Fintech specific related topics, for the Blockchain Week in Review, please visit our sister blog post at the Virtual Currency Report. Roundup of CFTC Resources The Commodity Futures Trading Commission (CFTC) announced on September 20, 2018 that it would hold an open meeting on September 27, 2018 to discuss fintech cooperation agreements, … Continue Reading
The following is a summary of Fintech specific related topics, for the Blockchain Week in Review, please visit our sister blog post at the Virtual Currency Report. State Bank Regulators and NYDFS to renew litigation against OCC On September 12, the Conference of State Bank Supervisors (“CSBS”) announced that it would renew litigation efforts in opposition to the … Continue Reading
The following is a summary of Fintech specific related topics, for the Blockchain Week in Review, please visit our sister blog post at the Virtual Currency Report. U.S. Chamber of Commerce Announces FinTech Innovation Initiative The U.S. Chamber of Commerce released “FinTech Innovation Initiative: Bridging the Gap Between Tech and D.C.” The document includes a number of guiding … Continue Reading
