Weekly Fintech Focus

  • FinCEN issues final rule that implements certain AML requirements on banks that lack a federal functional regulator.
  • FinCEN seeks public comment on AML Program requirements.
  • State regulators announce the “One Company, One Exam” for licensed payment firms.
  • The CFPB published its SBREFA outline for the upcoming small business loan data rule.


Continue Reading Fintech Week in Review: Week of September 18, 2020

Weekly Fintech Focus

  • The CFPB orders a bank to pay over $100 million to resolve a pattern of violations of EFTA, UDAAP, and FCRA related to the bank’s overdraft services.
  • The CFPB issues an RFI seeking information about the effect of the CARD Act on small entities.
  • FinCEN provides clarification about bank customer due diligence flexibility for onboarding and servicing PEP customers.
  • The CFPB is still on track to issue its small business data rule outline of proposals in September.
  • The OCC clarifies how credit card issuers choose which state’s interest rate can be used with its credit cards based on where the bank makes the loan.


Continue Reading Fintech Week in Review: Week of August 28, 2020

Weekly Fintech Focus

  • The CFPB issues a statement providing flexibility to credit card issuers as they obtain consent from customers to receive disclosures electronically under Regulation Z and the E-Sign Act.
  • The OCC announces a new acting Comptroller and includes FinTech Charters among its focuses
  • The OCC issues a rulemaking on digital banking transformation, seeking comment on the ways its regulations should change in response to advances in technology and market trends.
  • The House Financial Services Committee holds a hearing on the digital dollar and its place in making stimulus payments.
  • SEC’s FinHub to host virtual meet-ups.
  • Amazon and Goldman Sachs introduce new credit line for U.S.-based merchants.
  • FBI issues warning to mobile banking app users.


Continue Reading Fintech Week in Review: Week of June 12, 2020

Weekly Fintech Focus

  • The current pandemic creates new stresses on the relationship between payment processors and merchants, but there are ways to work through these challenges together. See here for our discussion reserve account issues in credit card processing agreements.
  • FinCEN seeks comment on the burden financial institutions face when filing SARs.
  • The CFPB files its first status report on its progress on rulemaking regarding the small business loan data rule.
  • The CFPB issued a report on the consumer complaints it received during COVID-19.
  • Marqeta raises $150 million with a $4.3 billion valuation.
  • New mobile banking registrations in April surge 200%.


Continue Reading Fintech Week in Review: Week of May 29, 2020

Weekly Fintech Focus

  • Federal financial regulators for banks and non-banks reduce supervisory burdens and encourage covered entities to work with consumers that are affected by COVID-19
  • Regulators encourage contactless payment innovations to work towards sanitary payments in stores.
  • FinCEN issues an advisory on FATF-identified jurisdictions with AML/CFT deficiencies.
  • Goldman Sachs and Morgan Stanley are approved for majority stakes in China ventures.
  • Russian Prime Minister introduces a bill to allow fintech sandboxes.


Continue Reading Fintech Week in Review: Week of March 27, 2020

Weekly Fintech Focus

  • New York City bans cashless stores, joining Philadelphia, San Francisco, New Jersey, and Massachusetts in a growing national trend.
  • The FTC continues to go after payment processors involved in facilitating deceptive and fraudulent schemes.
  • FDIC extends the deadline for comments on its Innovation Pilot Program after it receives no responses.
  • FICO announces a recalculated FICO Score for credit scoring.


Continue Reading Fintech Week in Review: Week of January 24, 2020

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 found that the claims brought by the CSBS are not ripe, given that the no fintech charters have been approved or issued by the OCC, and therefore the CSBS lacks standing to bring the suit.

The New York Department of Financial Services (“NYDFS”), a CSBS member, has brought a separate suit on the matter in the Southern District of New York—and in that case, the judge has found the matter is ripe for adjudication and has allowed that suit to continue. In both suits, the plaintiffs allege the OCC’s fintech charter impinges on state sovereignty and exceeds the OCC’s congressional mandate.  Judge Friedrich notes in her opinion that her decision runs counter to the decision in the NYDFS case but disagrees with that decision where it conflicts with the D.C. Circuit’s dismissal of the CSBS case.
Continue Reading Fintech Week in Review: Week of September 6, 2019