By Brian J. Hurh on Posted in Regulatory and ComplianceI. Introduction
A confluence of regulatory activity and policy debates seem to be laying the groundwork for future regulation of consumer financial data aggregation activities. The outcome of these activities could significantly affect how financial data may be shared by financial institutions, controlled by third-party data aggregators, and used… Read the rest
By Brian J. Hurh on Posted in Regulatory and ComplianceIn a recent speech at the Northwestern Kellogg Public-Private Interface Conference, Federal Reserve Board Governor Lael Brainard indicated that the relationships between banks and data aggregators within the “fintech stack” may present safety and soundness concerns that warrant oversight by the FRB (and perhaps other prudential regulators).… Read the rest
By Monami Chakrabarti, Tom Scanlon, James H. Mann and Davis Wright Tremaine on Posted in Regulatory and ComplianceOverview
Should banks, while guarding against rolling episodes of misconduct by bankers, have the ability to blackball employees from the banking industry? A “bad apples” database of bank employees who have acted improperly in prior jobs would help ferret out potential problem employees before they are hired and able to do more bad banking deals… Read the rest
By Davis Wright Tremaine on Posted in Regulatory and ComplianceThe Consumer Financial Protection Bureau recently issued a request for information (the RFI) regarding the consumer credit card market. The CARD Act (Pub. L. No. 111–24, 123 Stat. 1734 (2009)) requires the CFPB to publish a biennial report on the state of the credit card market, and responses to the RFI will inform the CFPB’s findings in its forthcomin… Read the rest
By Davis Wright Tremaine on Posted in Regulatory and ComplianceThe Consumer Financial Protection Bureau (CFPB or the “Bureau”) has recently expressed interest in how consumer financial information aggregators and financial services companies interact to share and protect financial data about consumers. Below we provide background on this growing industry, summarize the CFPB’s recent Request for Infor… Read the rest
By Andrew Owens and Davis Wright Tremaine on Posted in Regulatory and Compliance
Following their prior post on the CARD Act Report, Payments team members Andrew Owens and Adam Maarec authored an article entitled “The 2015 CARD Act Report” for the November 2016 issue of The Review of Banking & Financial Services. The abstract for the article is as follows:
The CFPB’s biennial report on the consumer credit card market, pursuan… Read the rest
By Davis Wright Tremaine on Posted in Deals and Technology, Regulatory and Compliance
Innovation in the delivery of financial products and services continues at a rapid rate. We discuss below some recent developments at the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency that illustrate the ways in which two key financial services regulators are working to keep up.
CFPB’s Innovation Insights Re… Read the rest
By Davis Wright Tremaine on Posted in Regulatory and Compliance
On October 13, the DWT Payments team briefed the Consumer Working Group of the Financial Services Roundtable (FSR) on the CFPB’s final prepaid account rule. The presentation focused on the following topics:
Scope of the Rule
Periodic Statements – and Alternatives
Regulation Z Overdraft
Effectiv… Read the rest
By Julia Dempewolf on Posted in Regulatory and Compliance
On September 7, 2016, attorneys from Davis Wright Tremaine LLP attended Next Money NYC 2016. Next Money featured speakers from across the payments industry and the BBVA Open Talent Pitch Competition where twenty fintech start-ups competed for two € 30,000 prizes. Here are our top takeaways from the conference:
Blockchain Holds Potential to Reshape Di… Read the rest
By Tom Scanlon on Posted in Regulatory and ComplianceThis morning we attended the meeting of the Financial Services Roundtable’s Consumer Working Group, which featured a presentation by David Silberman, Acting Deputy Director of the Consumer Financial Protection Bureau.
Deputy Director Silberman described the Bureau’s rulemaking process, touched on a handful of its ambitions for rules under a ra… Read the rest
By Davis Wright Tremaine on Posted in Regulatory and ComplianceAt ACI’s recent the 12th National Forum on Emerging Payment Systems in San Francisco, Andy Lorentz, the leader of DWT’s Emerging Payments and Prepaid practice, served as conference co-chair and presented as part of a panel entitled “Mobile Payment Systems and the Challenges Facing Financial Inclusion: Managing the Expe… Read the rest
By Julia Dempewolf on Posted in Regulatory and ComplianceIn February 2016, hackers stole $81 million from the Bangladesh central bank by sending fraudulent messages through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) messaging system.
Three months later, hackers attempted to steal over $1 million from a commercial bank in Vietnam using a similar method. Since then, almost a doz… Read the rest
By Monami Chakrabarti on Posted in Regulatory and ComplianceOn June 30, 2016, the New York Department of Financial Services (NYDFS) issued a final regulation obliging regulated institutions to meet enhanced requirements for transaction monitoring and filtering programs aimed at preventing Bank Secrecy Act (BSA)/anti-money laundering (AML) violations and transactions with sanctioned entities (the “Fin… Read the rest
By Davis Wright Tremaine on Posted in Regulatory and ComplianceAt this week’s NBPCA Power of Prepaid conference in Washington, DC, DWT Payments team member Adam Maarec joined a panel entitled “Spotlight on CFPB Enforcement: Uncovering Recent Trends, Targets and Priorities Surrounding Prepaid” to discuss, amongst other topics, UDAAP as a CFPB enforcement priority; spotting unfairness, deception, and abu… Read the rest
By Davis Wright Tremaine on Posted in Regulatory and ComplianceAt the 2016 Digital Payments Intensive in London, DWT Emerging Payments and Prepaid team leader Andy Lorentz offered attendees insight into some major recent and upcoming developments with respect to regulation of consumer financial services activities in the United States this year. Such developments include everything from pending rules on pre… Read the rest
By Burt Braverman on Posted in Regulatory and ComplianceA recent enforcement action by the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) against MasterCard International Incorporated (“MasterCard”) stands as a reminder of the importance of strictly complying with even seemingly ministerial reporting requirements applicable to financial institutions that hold blo… Read the rest
By Monami Chakrabarti on Posted in Deals and Technology Resources, Regulatory and ComplianceOn March 31 and April 1, Davis Wright Tremaine LLP sponsored the ACI Emerging Payments Forum in Chicago, IL, where leading industry experts and senior regulatory officials met to address the evolving legal, regulatory and enforcement landscape of emerging payment systems. DWT partner and lead of the DWT Emerging and Prepaid Payments Practice, Andy Lo… Read the rest
By Rebecca L. Williams on Posted in Privacy and Data Security, Regulatory and ComplianceThe Phase 2 audit program for HIPAA compliance now is underway — and financial institutions are on the list as potential targets. Many financial institutions are business associates under HIPAA, usually because of their “value-added” services to clients that are health care providers and health plans.
Other financial institutions are cl… Read the rest
By Davis Wright Tremaine on Posted in Deals and Technology, Regulatory and ComplianceThe intersection of technology and financial services innovation raises a host of regulatory questions for new participants, and that’s before thinking about how those regulations are evolving to keep pace with new developments. DWT’s Emerging Payments and Prepaid practice leader Andy Lorentz joined Tommy Nicholas (Co-Founder, Alloy.co), Wre… Read the rest
Our Payments Team addresses changes and continuities in the payments industry every day—leveraging our many years of industry experience and our presence on both coasts and in China. On paymentlawadvisor, we offer commentary on new developments that seem particularly significant, as well as resources that we believe can be helpful to others who are tasked with anticipating, understanding and addressing these developments.