Developments and Commentary

DeptTreasury4PayPal to Pay Dearly for Alleged Violations of OFAC Sanctions

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced a $7,658,300 settlement with PayPal, Inc. (PayPal) to resolve potential civil liability for 486 alleged violations of the Iranian, Sudanese, Cuban, Global Terrorism, and Weapons of Mass Destruction Proliferators (WMDP) sanctions programs.  OFAC alleged that, for ...

CFPBFeb10v2CFPB Provides Details of Non-Public Supervisory Actions

The Consumer Financial Protection Bureau recently issued its semi-annual Supervisory Highlights report, which summarizes non-public supervisory actions that occurred during the second half of 2014. These reports provide regulated institutions with insight into the CFPB’s recent areas of focus and identify specific practices that the agency has concluded are violations ...

CFPBFeb10v2The CFPB’s Final Report on Pre-Dispute Arbitration Clauses

On March 10, 2015, the CFPB issued its long-awaited Arbitration Study analyzing the use of pre-dispute arbitration provisions in connection with consumer financial products or services. In the 728-page report, as well as during a field hearing held the same day, the CFPB was critical of the use and effect ...

money iconsThe OCC’s Increasing Focus on BSA-AML Compliance

In a speech last week to the Institute of International Bankers, Comptroller of the Currency Thomas J. Curry focused extensively on Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance. Combined with the recent suggestion by Benjamin Lawsky, the Superintendent of New York’s Financial Services Department (DFS), that New York may begin requiring ...

China FlagChinese Government’s Announcement to Open Bank Cards Network Market

On Oct. 29, 2014, in a routine working session, the China State Council determined that the Chinese government would “open” bank card acquisition and settlement businesses in China. Qualified Chinese domestic and foreign investors may apply to establish bank card acquisition and settlement businesses in China and to process Chinese ...

Resource Updates

gizmoAnatomy of a Consent Order: “Gizmo” Case Study

On March 26, 2015, DWT payments team member Andy Lorentz was a presenter at ACI’s 9th Emerging Payments System conference in Chicago, IL. His panel focused on the topic of “Ensuring Compliance with the Increasingly Aggressive State Regulatory and Enforcement Framework Governing Emerging Payment Systems.” Andy’s presentation offered a case ...

President Obama’s Proposed Consumer Privacy Bill of Rights

Our colleagues over at the DWT PrivSec Blog are closely monitoring the Obama administration's proposed Consumer Privacy Bill of Rights. In a six-part series of posts, they will explore: Personal Data, De-Identification, and Retention Requirements Notice, Choice, and Context What’s Not Covered Data Security Accountability Expanded FTC Jurisdiction To read our team's summaries and analysis, click here.

Dot comAmerican Banker Talks to Andy Lorentz on Net Neutrality

As players from across the online ecosystem have lined up to debate the effects of net neutrality, the financial services world has generally stayed out of the fray. That does not mean, however, that financial institutions aren't keeping a close eye on what the FCC is doing and how it might ...

Bitcoin FlckrOpen Source Software and Virtual Currency: Exempt Organizations Issues in the Digital World

At the ABA Section of Taxation 2015 Midyear Meeting that took place on January 30, 2015, in Houston, Texas, DWT payments team member David Lawson, along with Michael Durham from Caplin & Drysdale, Chartered and Ingrid Mittermaier from Adler & Colvin, presented on the topic of Open Source Software and ...

Cyber2Feb10v2Cybersecurity: The Human Factor

Financial institutions are under a constant and growing cyber assault from hacktivists that want to cause online mischief, criminals that want to steal consumer data and nation-states that are looking for a military, political or economic advantage. In this increasingly costly war, the focus is often on the latest hardware, ...