Payment Law Advisor Legal Commentary and Resources for the Payment Industry

Category Archives: Regulatory and Compliance

Subscribe to Regulatory and Compliance RSS Feed

Consumer Financial Data Aggregation & the Potential for Regulatory Intervention

Posted in Regulatory and Compliance
I. 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

FRB Governor Indicates Data Aggregators Could Impact Bank Safety & Soundness as Part of the “Fintech Stack”

Posted in Regulatory and Compliance
In 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

A “Bad Apples” Database for Banks? Not So Fast.

Posted in Regulatory and Compliance
Overview 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

CFPB Seeks Comments on the Credit Card Market for Its 2017 CARD Act Report

Posted in Regulatory and Compliance
The 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

RFI on Consumer Data Sharing Shows CFPB Interest in Data Aggregators

Posted in Regulatory and Compliance
The 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 InforRead the rest

Caveat Venditor: CFPB Bulletin on Sales Practices and Incentive Compensation Suggests More Enforcement Actions may be Coming

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
On November 28, 2016, the Consumer Financial Protection Bureau (the “Bureau”) issued CFPB Compliance Bulletin 2016-13, titled “Detecting and Preventing Consumer Harm from Production Incentives” (the “Bulletin”).  Inviting “dialogue and discussion” on issues surrounding the uses of production incentives for consumer financi… Read the rest

Federal Banking Agencies Seek Comment on Enhanced Cyber Risk Management Standards for Large Banks

Posted in Regulatory and Compliance
To address the increasing risk of technology failures and cyber-attacks affecting the largest banking organizations, an advance notice of proposed rulemaking titled Enhanced Cyber Risk Management Standards (the ANPR) was recently issued by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Fed… Read the rest

Regulators and Innovation – an Update on Key Developments

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 ReRead the rest

Assessing the Utility of CARD Act Disclosures

Posted in Regulatory and Compliance
PLA has for many years posted elite academic research questioning the utility of CARD Act disclosures.  For example, in 2013 we posted Regulating Consumer Financial Products: Evidence from Credit Cards by Sumit Agarwal from Georgetown University, Souphala Chomsisengphet from the Office of the Comptroller of the Currency, Neale Mahoney from the… Read the rest

Blockchain, Regtech Dominate Financial Industry Innovations

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

Cybersecurity Response to Recent Wholesale Payment Systems Breaches

Posted in Regulatory and Compliance
In 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

NYDFS Issues Regulation Addressing Anti-Money Laundering Transaction Monitoring and Filtering Requirements

Posted in Regulatory and Compliance
On 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

U.S. Consumer Financial Services Regulation: What to Expect in 2016

Posted in Regulatory and Compliance
At 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

Violation of OFAC Reporting Requirements: “No Harm, No Foul”? No Way!

Posted in Regulatory and Compliance
A 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

Key Takeaways from the ACI Emerging Payments Forum

Posted in Deals and Technology Resources, Regulatory and Compliance
On 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

HIPAA Audits to Include Financial Institutions—There’s an App for That

Posted in Privacy and Data Security, Regulatory and Compliance
The 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

FinTech Regulations: What You Need to Know

Posted in Deals and Technology, Regulatory and Compliance
The 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,, Wre… Read the rest