CFPB Initiates Inquiry into Big Tech Payment Platforms -
On October 21, 2021, the Consumer Financial Protection Bureau (CFPB) ordered six large technology companies—Google, Apple, Facebook, Amazon, Square, and PayPal—to...more
10/26/2021
/ Big Tech ,
Civil Monetary Penalty ,
Consent Order ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Consumers ,
Department of Corrections ,
Financial Services Industry ,
FinTech ,
Payment Services Directive ,
Transaction Fees
Chopra Sworn in as CFPB Director On October 12, 2021, Rohit Chopra was sworn in as the CFPB Director. Acting Director David Uejio will leave his post but will remain at the CFPB as he awaits his likely confirmation to a fair...more
House Financial Services Committee Discusses Consumer Rights to Access Personal Financial Data -
On September 21, 2021, the House Committee of Financial Services Task Force on Financial Technology held a hybrid hearing...more
10/13/2021
/ Banking Sector ,
Borrowers ,
Civil Monetary Penalty ,
Consumer Financial Protection Bureau (CFPB) ,
Data-Sharing ,
Enforcement Actions ,
Financial Institutions ,
Financial Services Industry ,
FinTech ,
Lenders ,
Permanent Injunctions ,
Right of Access
On New Year’s Day 2021, Congress passed the Anti-Money Laundering Act of 2020 (AMLA 2020). As we reported last April, the AMLA 2020 included sweeping reforms aimed at strengthening protections against money laundering,...more
Federal Banking Agencies Issue Guide for Community Banks on Conducting Due Diligence on Fintech Companies -
On August 27, 2021, the federal banking agencies (Federal Reserve, FDIC, and OCC) published “Conducting Due...more
9/20/2021
/ Banking Sector ,
Banks ,
Consumer Financial Protection Bureau (CFPB) ,
Credit ,
Due Diligence ,
FDIC ,
Federal Register ,
Financial Services Industry ,
FinTech ,
NPRM ,
OCC ,
Proposed Rules ,
Small Business
Senators Inquire about CFPB’s Fintech Agenda -
On July 27, 2021, Senator Sherrod Brown, the Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, sent a letter to the Consumer Financial Protection...more
9/2/2021
/ Banking Sector ,
Big Tech ,
Blockchain ,
Bureau of Industry and Security (BIS) ,
China ,
Consumer Financial Protection Bureau (CFPB) ,
Digital Assets ,
EU ,
Federal Trade Commission (FTC) ,
FFIEC ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
FinTech ,
Guidance Update ,
OCC ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Risk Management ,
SDN List ,
Securities and Exchange Commission (SEC) ,
Settlement
President Biden Issues an Executive Order on Competition with Implications for Financial Institutions -
On July 9, 2021, President Biden issued an Executive Order on Promoting Competition in the American Economy. The...more
7/20/2021
/ Anti-Money Laundering ,
Banking Sector ,
Biden Administration ,
BSA/AML ,
Colorado ,
Competition ,
Credit Card Surcharges ,
Executive Orders ,
FFIEC ,
Financial Institutions ,
Financial Services Industry ,
FinCEN ,
FinTech ,
Information Technology ,
OCC ,
Proposed Guidance ,
Risk Management ,
Third-Party ,
True Lender ,
UDAAP
A buy-now pay-later company faces a potential class action alleging it hid the risk of overdraft and NSF fees from its users.
Leaders of the CFPB’s Fair Lending Office published an article encouraging the use of special...more
6/29/2021
/ Audits ,
Class Action ,
Consumer Financial Protection Bureau (CFPB) ,
Cybersecurity ,
Data Security ,
ECOA ,
Fair Lending ,
FDIC ,
Financial Institutions ,
Financial Stability Board ,
FinTech ,
Overdraft Fees ,
Special Purpose Credit Programs ,
Unfair Competition Law (UCL)
Federal Financial Regulators Extend Deadline for RFI on AI -
On May 17, 2021, five financial regulatory agencies announced a deadline extension for the ongoing comment period on financial institutions’ use of AI from June...more
6/22/2021
/ Artificial Intelligence ,
Consumer Financial Protection Bureau (CFPB) ,
Deadlines ,
Durbin Amendment Rules ,
EFTA ,
EFTs ,
Electronic Fund Transfer Act ,
Federal Reserve ,
Financial Regulatory Reform ,
Financial Services Industry ,
FinTech ,
Proposed Rules ,
Public Comment ,
Regulation E ,
Regulation J ,
Regulatory Oversight ,
State Regulators
Federal Reserve Seeks Comments on Guidelines for Fintechs Receiving Fed Accounts and Services -
The Federal Reserve System (the Fed) issued a request for comment on new guidelines for the Fed’s Regional Banks to use when...more
CFPB Consumer Complaint Analysis Shows Higher Complaints from Minority Communities -
The Consumer Financial Protection Bureau (CFPB) issued a bulletin on a recent analysis of complaints received over the past two years....more
FDIC Consumer Compliance Supervisory Highlights Fair Lending Risks -
The Federal Deposit Insurance Corporation (FDIC) has issued the March 2021 edition of its Consumer Compliance Supervisory Highlights. The publication was...more
On New Year’s Day 2021, Congress overrode a presidential veto to pass the Anti-Money Laundering Act of 2020 (AMLA 2020), which amends and modernizes the Bank Secrecy Act (BSA). The AMLA 2020 includes sweeping reforms updating...more
4/13/2021
/ Anti-Corruption ,
Anti-Money Laundering ,
Bank Secrecy Act ,
Beneficial Owner ,
Criminal Penalties ,
Disclosure Requirements ,
Enforcement Actions ,
Financial Institutions ,
Financial Transactions ,
FinCEN ,
Senior Foreign Political Figures (SFPFs) ,
Subpoenas ,
Virtual Currency ,
Whistleblower Awards
Federal Financial Regulators Seek Information on the Use of AI by Financial Institutions -
On March 29, 2021, five federal financial regulatory agencies (the Federal Reserve, CFPB, FDIC, OCC, and NCUA) announced a request...more
4/9/2021
/ Anti-Money Laundering ,
Bank Secrecy Act ,
Consumer Financial Protection Bureau (CFPB) ,
Coronavirus/COVID-19 ,
CSBS ,
Cybersecurity ,
FDIC ,
Federal Trade Commission (FTC) ,
Financial Conduct Authority (FCA) ,
Financial Regulatory Agencies ,
FinTech ,
Gramm-Leach-Blilely Act ,
National Futures Association ,
NCUA ,
OCC
Visa and Mastercard Delay Hike to Interchange Fees—US and UK Developments Visa and Mastercard announced on March 16 that they have postponed the scheduled plan to boost interchange fees, i.e., fees that U.S. merchants pay...more
CFPB Clarifies That Sexual Orientation and Gender Identity Are Protected Under ECOA -
On March 9, CFPB issued an interpretive rule clarifying the prohibition against sex discrimination under the Equal Credit Opportunity...more
Weekly Fintech Focus -
• The California DFPI issued new opinions on the scope of its money transmission laws, including the agent of the payee exemption, addressing virtual currency transactions, and pay-in/pay-out...more
3/11/2021
/ Banking Sector ,
Big Data ,
Big Tech ,
Department of Financial Protection and Innovation (DFPI) ,
eSports ,
Exemptions ,
Fair Credit Reporting Act (FCRA) ,
Federal Reserve ,
Financial Services Industry ,
FinTech ,
Online Gaming ,
Virtual Currency
FDIC Appoints First Chief Innovation Officer -
On February 16, 2021, the Federal Deposit Insurance Corporation (FDIC) appointed Sultan Meghji as the agency’s first Chief Innovation Officer. Meghji has been made responsible...more
3/3/2021
/ Banking Sector ,
Biden Administration ,
Consumer Financial Protection Bureau (CFPB) ,
Cryptocurrency ,
Enforcement Actions ,
FATF ,
FDIC ,
Financial Services Industry ,
FinTech ,
OCC ,
Stablecoins
California DFPI Enters MOUs with Multiple Earned Wage Access Companies-
California’s Department of Financial Protection and Innovation (DFPI) has continued to expand its jurisdiction over financial service providers under...more
2/19/2021
/ California Consumer Financial Protection Law (CCFPL) ,
Consumer Financial Protection Bureau (CFPB) ,
Consumers ,
Department of Financial Protection and Innovation (DFPI) ,
Financial Services Industry ,
FinTech ,
Homeowners ,
Memorandum of Understanding ,
Regulatory Oversight ,
State and Local Government ,
State Regulators
UK Set to Move Forward on BNPL Regulation -
The United Kingdom Financial Conduct Authority (FCA) recently issued a report on the market conditions for buy-now pay-later (BNPL) unsecured lending. The report recommends...more
2/10/2021
/ Biden Administration ,
Consumer Financial Protection Bureau (CFPB) ,
Coronavirus/COVID-19 ,
ECOA ,
EU ,
Fair Access to Credit ,
Fair Housing Act (FHA) ,
Fair Lending ,
Federal Reserve ,
Financial Services Industry ,
FinTech ,
HUD ,
OCC ,
Proposed Rules ,
UK
Federal Regulation Actions Frozen Pending Review from New Administration -
On January 20, 2021, newly inaugurated President Joe Biden issued a memorandum to the Heads of Executive Departments and Agencies asking current...more
1/27/2021
/ Artificial Intelligence ,
Biden Administration ,
Blockchain ,
Cannabis-Related Businesses (CRBs) ,
Consumer Financial Protection Bureau (CFPB) ,
Data-Sharing ,
Disclosure Requirements ,
Due Diligence ,
Federal Bank Regulatory Agencies ,
Federal Reserve ,
FinTech ,
Guidance Update ,
Marijuana Related Businesses ,
New Legislation ,
OCC ,
Regulatory Freeze ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Suspicious Activity Reports (SARs)
California DFPI Begins Operating and Focuses on New Industries January 2021 brings with it a newly named and newly empowered California consumer financial protection agency. Effective January 1, the California Department of...more
FDIC Creates New Exceptions for Fintech Companies with Its Final Brokered Deposit Rule -
On December 15, 2020, the Federal Deposit Insurance Corporation (FDIC) finalized its updated brokered deposit rule, providing...more
1/13/2021
/ Commercial Loans ,
Consumer Financial Protection Bureau (CFPB) ,
CSBS ,
Disclosure ,
FDIC ,
Final Rules ,
Financial Institutions ,
FinTech ,
OCC ,
PayPal ,
Prepaid Rule ,
Special Purpose Credit Programs
House Financial Services Committee Sets Fintech Priorities for a New Administration -
House Financial Services Committee Chairwoman Maxine Waters sent a letter to the incoming administration with nearly 50 pages of...more
12/16/2020
/ Artificial Intelligence ,
Banking Sector ,
Capital One ,
Consumer Financial Protection Bureau (CFPB) ,
Coronavirus/COVID-19 ,
Credit Cards ,
Electronic Payment Transactions ,
Financial Services Industry ,
FinTech ,
Lenders ,
Mobile Banking ,
No-Action Letters
FTC Alleges Mobile App’s Deposit Promises Were Deceptive -
Following a May 2020, civil investigative demand, the Federal Trade Commission (FTC) filed suit against the operators of a mobile banking app, alleging that they...more
12/10/2020
/ Consumer Financial Protection Bureau (CFPB) ,
Customer Funds ,
Employees ,
Equal Access to Credit ,
Fair Access to Credit ,
Federal Trade Commission (FTC) ,
Financial Services Industry ,
FinTech ,
Mobile Apps ,
OCC ,
Regulation Z