Governance
FDIC and Regulators Tighten Rules After Fintech Bankruptcy Exposes Banking Risks
In late July, the FDIC, along with the Office of the Comptroller of the Currency and the Federal Reserve, raised concerns about banks' account reconciliation practices. They issued specific guidance requiring all banks under their jurisdiction to monitor and regularly reconcile any accounts they manage, regardless of the source or type of relationship. This action came after persistent issues with partner bank account reconciliation, which left thousands of clients unable to access hundreds of millions in third-party account balances following the bankruptcy of a fintech intermediary in April.
Wells Fargo Shares Drop After Agreement with Regulators to Address AML Deficiencies
Wells Fargo's shares declined on Thursday after the bank reached a formal agreement with the Office of the Comptroller of the Currency (OCC) to address deficiencies in its financial crime risk management and anti-money laundering (AML) controls.
New Bill Proposes CISA and HHS Collaboration to Enhance Health Sector Cybersecurity
A new bill introduced in Congress seeks to strengthen cybersecurity in the healthcare sector by mandating collaboration between the Cybersecurity and Infrastructure Security Agency (CISA) and the Department of Health and Human Services (HHS).
EU Passes Corporate Responsibility Law for Global Supply Chains
The European Parliament passed a new law to enhance corporate responsibility across global supply chains. The Corporate Sustainability Due Diligence Directive (CSDDD) mandates large EU companies to prevent environmental and human rights abuses.
Global Governments Unite on AI Regulation with Council of Europe Framework
The Council of Europe has introduced a groundbreaking AI Framework Convention, signed by the UK, US, EU, and several other nations, to establish a legal foundation for the ethical development and deployment of artificial intelligence.
Citi Fined $135.6 Million for Inadequate Risk Management Progress
Citi has been fined $135.6 million by US regulators for insufficient progress in addressing risk management and data governance issues. The Office of the Comptroller of the Currency (OCC) fined Citi $75 million and amended its previous cease and desist order, while the Federal Reserve Board added a $60.6 million fine for violations of a 2020 enforcement action.
Privacy in Focus: CNIL's 2023 Report
In its 2023 annual report, the French data protection authority CNIL highlighted a surge in public awareness and complaints, notably receiving 35% more complaints compared to the previous year.
Federal Regulators Address Fintech-Banking Reconciliation Crisis
In response to the fallout from the Synapse Financial Technologies bankruptcy, federal regulators, including the FDIC, Office of the Comptroller of the Currency, and Federal Reserve, have issued joint guidance aimed at reinforcing reconciliation responsibilities for banks in fintech partnerships.
US and China Dialogue: Addressing AI Risks and Security Concerns
Officials from the Biden administration tempered expectations about the recent discussions in a call with reporters, clarifying that the focus wasn't on fostering technical collaboration between the two global powerhouses in AI or emerging technologies.
US and EU Officials Initiate Talks on Consumer Financial Protection Amid Big Tech and AI Concerns
US and European authorities have initiated informal discussions regarding consumer financial protection matters, focusing on the growing influence of Big Tech in payment services, the utilization of artificial intelligence (AI) in lending practices, and the emergence of buy now, pay later (BNPL) models.
Bankrupt FTX Ordered to Pay $12.7 Billion Following Fraud Sentencing and CFTC Violations
FTX and Alameda Research, now bankrupt, must pay $8.7 billion in restitution and $4 billion in disgorgement following the sentencing of FTX founder Sam Bankman-Fried to 25 years in prison and another executive, Ryan Salame, to seven and a half years.
EU Tightens AML Laws, Impacts Cryptocurrency Industry
The EU Parliament passed laws to strengthen AML and terrorist financing measures, impacting cryptocurrency. Enhanced due diligence and identity checks are required, with obligated entities reporting suspicious activities to FIUs.
AWS responds to Digital Operational Resilience Act
Source: Amazon Web Services
In October 2023, we briefed customers on our submission to the public consultation on the first batch of regulatory technical standards (RTSs) made under DORA.