Stricter Oversight for Bank-Fintech Partnerships on the Horizon
In response to recent proposals by the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve, the Bank Policy Institute and Clearing House Association are advocating for direct regulatory oversight of fintechs.
Asic Warns Financial Firms on Lagging AI Governance
Australia's Securities and Investment Commission (Asic) is calling on financial services and credit licensees to strengthen their governance practices to keep pace with the rapid adoption of artificial intelligence.
JP Morgan Agrees to $151 Million Settlement Over Misleading Disclosures and Conflicts of Interest
JP Morgan Chase & Co. has agreed to pay $151 million in penalties without admitting or denying any wrongdoing. The company's affiliates were accused of misleading brokerage customers who invested in its 'conduit' private fund products, exposing them to market risks, and failing to disclose financial incentives tied to the Portfolio Management Program and Clone Mutual Funds.
SEC Fines Four Companies for Misleading Disclosures on Cybersecurity Breaches Linked to SolarWinds Hack
The Securities and Exchange Commission (SEC) has charged four current and former public companies—Unisys Corp., Avaya Holdings Corp., Check Point Software Technologies Ltd, and Mimecast Limited—with providing materially misleading disclosures about cybersecurity risks and breaches. Additionally, Unisys was charged with violations related to inadequate disclosure controls and procedures.
Axiom Bank Faces Regulatory Action Over BSA/AML Violations and Weak Risk Management Practices
Axiom Bank is facing legal action due to alleged violations of the Bank Secrecy Act (BSA) and insufficient anti-money laundering (AML) controls, alongside concerns over inadequate risk management practices. The regulatory filing points to suspicious activities that went unchecked due to weak internal controls, exposing the bank to potential involvement in illegal financial activities.
TD Bank Fined Billions for Systemic AML Failures Over a Decade
Between 2014 and 2023, TD Bank faced serious allegations of having "long-term, pervasive, and systemic deficiencies" in its U.S. anti-money laundering (AML) policies, according to court documents. Despite multiple warnings from regulators and its internal audit group, the bank failed to take appropriate remedial action.
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.
