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02/25/2020

FDITech guide to help fintechs connect with banks

The Federal Deposit Insurance Corporation's technology lab (FDiTech) has released Conducting Business with Banks: A Guide for Third Parties, a new guide to help financial technology companies and others partner with banks. The guide is designed to help third parties understand the environment in which banks operate and navigate the requirements unique to banking.

Conducting Business with Banks is an initial effort to address concerns that FDIC Chairman McWilliams has heard from banks and technology companies across the country related to challenges associated with on-boarding at institutions.

02/24/2020

Treasury reports on FATF Plenary

Treasury has announced that the Financial Action Task Force has released guidance on digital identity for customer identification and verification, and evaluated Treasury’s Customer Due Diligence rule for compliance with the FATF standards. The FATF also called on all jurisdictions to impose effective countermeasures on Iran, such as requiring financial institutions to review, amend, or if necessary terminate correspondent relationships with Iranian banks or limiting business relationships or financial transactions with Iran. The countermeasures should be developed and implemented to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from Iran.

02/21/2020

Symposium on consumer access to financial records

The it will hold a symposium on Consumer Access to Financial Records and Section 1033 of the Dodd-Frank Act on February 26, 2020, starting at 9:30 a.m. The event will be webcast on the Bureau’s website. Section 1033 addresses consumers’ rights to access information about their financial accounts. The Bureau’s data access symposium is intended to elicit a variety of perspectives on the current and future state of the market for services based on consumer-authorized use of financial data.

02/20/2020

International financial intelligence units discuss virtual assets

On February 16, 2020, fifty senior officials and experts of Financial Intelligence Units (FIUs) from FATF countries and the Egmont Group1 Secretariat met in Paris to discuss the international ramifications of virtual assets from FIUs’ perspectives. Ms. Lucie Castets, Head of International Affairs Department of France’s FIU, the Traitement du renseignement et action contre les circuits financiers clandestins (Tracfin), hosted the meeting. Mr. Kenneth A. Blanco, Director of the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), the FIU of the United States, Mr. Marko Stolle, Deputy Director of the Financial Intelligence Unit Germany, and Ms. Lucie Castets co-chaired the meeting. Virtual asset experts from the FIUs of France, the United States, and Israel offered detailed presentations. Among other topics, attendees discussed cryptocurrency business models, money laundering and terrorist finance risks, illicit typologies, and the role of FIUs in tracing virtual assets.

02/20/2020

CSBS to launch state exam system

The Conference of State Bank Supervisors (CSBS) has announced the nationwide roll-out of the State Examination System (SES), the first nationwide platform to bring state regulators and companies into the same technology space for supervision, fostering greater transparency and collaboration. Through SES, state regulators will be able to enhance supervisory oversight of fintechs and other nonbanks while making the process more efficient for regulators and companies alike.

SES is developed and operated by the State Regulatory Register (SRR), a SCBS subsidiary that also operates the Nationwide Multistate Licensing System (NMLS). SES is designed to:

  • Support networked supervision among state regulators
  • Standardize workflow, business rules and technology across states
  • Facilitate secure collaboration between licensees and their regulators
  • Help examiners focus more attention on higher-risk cases
  • Move state supervision towards more multistate exams and fewer single-state efforts

    02/11/2020

    Bowman addresses community bankers

    In a presentation at the ABA Conference for Community Bankers, Federal Reserve Board Governor Michelle W. Bowman discussed the interaction between innovation and regulation for community banks. Ms Bowman discussed clearing a path for innovation, and creating the right regulatory environment. Governor Bowman concluded, “I believe that we can create a regulatory environment in which community banks are empowered to innovate, in which supervisors leverage their own knowledge to help banks understand what to look for in a service provider. It's a regulatory environment in which guidance is clear and supervisors are appropriately flexible, and due diligence and third-party evaluations are appropriately scaled. Every bank must decide for itself whether and how to adapt their business models to new technologies, but supervisors and regulators can facilitate innovation at a few key milestones on that path forward.”

    02/07/2020

    2020 national illicit finance strategy announced

    Treasury has issued the 2020 National Strategy for Combating Terrorist and Other Illicit Financing, which provides a roadmap to modernize the U.S. anti-money laundering/countering the financing of terrorism (AML/CFT) regime to make it more effective and efficient. The strategy identifies key threats, vulnerabilities, and priorities for disrupting and preventing illicit finance activities within and transiting the U.S. financial system, and builds upon and updates the 2018 National Strategy for Combating Terrorist and Other Illicit Financing, pursuant to the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA).

    01/28/2020

    OCC workshops in New Orleans

    The OCC has announced it will host two workshops at the Embassy Suites by Hilton in New Orleans, March 3-4, for directors of national community banks and federal savings associations.

    • The Credit Risk workshop on March 3 focuses on credit risk within the loan portfolio, such as identifying trends and recognizing problems. The workshop also covers the roles of the board and management, how to stay informed of changes in credit risk, and how to effect change.
    • The Operational Risk workshop on March 4 focuses on the key components of operational risk—people, processes, and systems. The workshop also covers governance, third-party risk, vendor management, and cybersecurity.

    The fee for each workshop is $99, and each session is limited to 35 registrants. Online registration is available.

    01/24/2020

    TCH increasing RTP payment cap to $100,000

    The Clearing House has announced it will increase the general transaction value limit on its RTP® (real time payments) network from $25,000 to $100,000, effective February 1, 2020. Under the new rules, depository institutions on the RTP network are required to accept payments up to $100,000. However, individual participants may set a lower value limit for payments they originate.

    01/17/2020

    Heightened cybersecurity risk considerations

    In response to the heightened cybersecurity risk facing the financial services industry and other critical business sectors, the FDIC and the OCC have issued an interagency statement on heightened cybersecurity risk. The statement focuses on risk management principles that can reduce the risk of a cyber-attack and minimize business disruptions. FIL-3-2020 has also been issued by the FDIC.

    The Department of Homeland Security has indicated there is heightened risk of cyber-attack against U.S. targets because of increased geopolitical tension. The current environment provides an opportunity for banks to re-evaluate the adequacy of safeguards to protect against various types of cybersecurity risk. The Heightened Cybersecurity Risk document highlights principles previously articulated by the FDIC and other banking regulators including: business resilience, authentication, system configuration, security tool, data protection, and employee training. Banks can apply cybersecurity risk management principles and risk mitigation techniques to reduce the risk of a cyber attack's success and minimize the negative impacts of a disruptive and destructive cyber attack

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