News & Analysis as of

Wire Transfers

Adams & Reese

Does Regulation E apply to Consumer Online Wire Transfers? Second Circuit to Hear Oral Argument on April 6, 2026

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On April 6, 2026, the United States Court of Appeals for the Second Circuit will hear oral argument in The People of the State of New York v. Citibank, N.A., Case No. 25-2105 (the “New York Case”), which presents a question...more

Maynard Nexsen

Phishing Email Impersonating Local Planning/Zoning Officials

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On March 10th, the FBI issued an alert warning of an emerging scheme whereby criminals impersonating city and county officials solicit fraudulent payments for city / county planning and zoning permits....more

Alston & Bird

Payments Docket | January 2026

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The latest edition of the Payments Docket, our roundup of key litigation and enforcement involving the payments industry, features the CFPB proposing to limit its own authority, one bank with two interest rates, and fraud...more

Mayer Brown

Second Circuit Poised to Rule on What Law Applies to Consumer Wire Fraud

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For years, courts faced with the question of who is liable for unauthorized wire transfers have turned to the familiar provisions of Article 4A of the Uniform Commercial Code (“UCC”)....more

Levenfeld Pearlstein, LLC

Cyberattack and the Risk to Wire Transfers

October is Cybersecurity Awareness Month, the perfect time to provide some common-sense tips to avoid a common risk facing businesses: business email compromise and wire fraud. Businesses of all shapes and sizes use email,...more

Orrick, Herrington & Sutcliffe LLP

Second Circuit to review whether EFTA covers online wire transfers in New York attorney general’s case against bank

On September 17, the U.S. Court of Appeals for the 2nd Circuit granted a national bank’s request for interlocutory appeal in a case brought by the New York attorney general regarding the bank’s response to incidents of online...more

Constangy, Brooks, Smith & Prophete, LLP

Wire Fraud: Should banks CYA by tightening up on KYC?

After a long weekend, Finance Manager Joe sits at his desk to read his emails. One of the emails is from a trusted vendor with whom the Joe communicates on a regular basis, regarding an unpaid invoice that is due immediately....more

Coblentz Patch Duffy & Bass

Federal Reserve to Implement New ISO 20022 Funds Wiring System

Due to the Federal Reserve’s imminent shift to a new funds wiring system (known as ISO 20022), if you have upcoming plans to transfer any amount of funds via wire transfer, confirm with your bank and anyone else handling your...more

Woods Rogers

Depository Institution Not Liable in ACH Fraud Case

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On March 26, 2025, the U.S. Court of Appeals for the Fourth Circuit issued an important decision addressing a depository institution’s liability for wire transfer losses resulting from a business email compromise scam....more

Mandelbaum Barrett PC

The $5 Million Hush Money Payment in White Lotus Season 3

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The explosive finale of White Lotus Season 3 left fans with more than just plot twists—it raised fascinating legal and tax questions. Chief among them: what are the implications of Greg’s $5 million wire transfer to Belinda,...more

Orrick, Herrington & Sutcliffe LLP

District court grants bank’s motion for stay pending appeal to consider EFTA arguments

On April 22, the U.S. SDNY granted a bank’s motion for interlocutory appeal and stay pending appeal to the U.S. Court of Appeals for the Second Circuit in a case involving alleged violations of the EFTA. The case stemmed from...more

Morrison & Foerster LLP

CFPB Reverses Course, Withdrawing “Unprecedented” EFTA Interpretation

Following a brief pause under new leadership, the Consumer Financial Protection Bureau (CFPB) has resumed activities, albeit significantly in retreat from the positions taken by the prior administration. In a case involving...more

Goodwin

CFPB Recounts Statement of Interest About EFTA’s Applicability to Wire Transfers

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On Tuesday, March 25, 2025, the Consumer Financial Protection Bureau (CFPB or Bureau) filed a motion in a suit brought by the New York attorney general against a major national bank seeking to withdraw a Statement of Interest...more

Troutman Pepper Locke

Fourth Circuit Holds UCC Article 4A Requires Beneficiary Bank’s Actual Knowledge for Wire Misdescription Liability in Business...

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On March 26, the U.S. Court of Appeals for the Fourth Circuit reversed a district court’s decision holding a credit union liable for a wire transfer in a business email compromise scam case where the credit union lacked...more

Maynard Nexsen

2025 Alabama Legislative Update: Regular Session - Week Five

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Back The Blue Act - This week, the Alabama House of Representatives passed the Back the Blue Protection Act, sponsored by Representative Rex Reynolds and Senator Lance Bell, which aims to expand legal immunity for law...more

Orrick, Herrington & Sutcliffe LLP

Managing Fraud Risk in Consumer Wires

As anticipated, 2025 is already shaping up to be a busy year in consumer financial services, with a federal district court expanding the application of a strict consumer protection law to wire transfers. The potential for a...more

Katten Muchin Rosenman LLP

Federal Court Finds Consumer Wire Transfers Are Subject to the Electronic Funds Transfer Act

In an apparent departure from decades of jurisprudence acknowledging the exemption of wire transfers from the ambit of the Electronic Funds Transfer Act (EFTA or the Act), one federal district court recently found that a bank...more

Orrick, Herrington & Sutcliffe LLP

Cyber Threats in Public Finance: Protecting Transactions from Wire Fraud

A recent cyberattack on a Michigan township has exposed weaknesses in the bond-closing process. In this incident, hackers stole over $25 million in bond proceeds by using spoofed email addresses to provide fraudulent wire...more

Adams & Reese

Financial Institutions Face New Risks in Allowing Consumers to Execute Wire Transfers Online

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A recent court order issued in New York should concern any financial institutions that allow consumers to initiate wire transfers online. Financial institutions that allow consumers to execute wire transfers online should...more

King & Spalding

Second Circuit Refines Fraudulent Transfer Defense Under Bankruptcy Code’s “Safe Harbor” Provision

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On November 27, 2023, the U.S. Court of Appeals for the Second Circuit revived some of a bankruptcy litigation trustee’s fraudulent transfer claims stemming from the leveraged buyout of apparel retailer Nine West. The lawsuit...more

Orrick, Herrington & Sutcliffe LLP

Fed’s Waller discusses private sector and Fed’s roles in payments

On November 12, the Fed’s Christopher Waller addressed a conference in New York City, discussing the roles of the private sector and the Fed in the payments ecosystem. Waller emphasized that while the private sector is...more

Paul Hastings LLP

New CPPA Regulations for Data Brokers and ADMT Rulemaking Package Advance

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On November 8, 2024, the California Privacy Protection Agency (CPPA) Board voted to adopt new regulations for data broker registration requirements. The CPPA Board also voted to advance proposed rules for insurance companies,...more

The Volkov Law Group

OFAC Imposes $860,000 Penalty on Vietnamese Beverage Company for Violations of North Korean Sanctions

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North Korea Sanctions Violations - In a recent enforcement action, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) imposed an $860,000 penalty on Vietnam Beverage Company Limited (“VBCL”), a...more

Arnall Golden Gregory LLP

Business Email Compromise Fraud: Should the Party Best Positioned to Avoid the Fraud Bear the Loss?

Business email compromise (“BEC”) occurs when a payee’s business email account is compromised or impersonated. The threat actor, posing as the payee or its representative (e.g., the head of the accounting department), sends...more

A&O Shearman

News update: EBA cryptoasset "travel rule" guidelines

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On 4 July 2024, the European Banking Authority (EBA) published new guidelines on information requirements in relation to transfers of funds and certain cryptoasset transfers under Regulation (EU) 2023/1113 (the recast,...more

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