Financial Regulators Tighten Oversight of Critical Tech Providers
Financial regulators are taking action as financial firms increasingly depend on a small number of technology providers, which could pose significant risks to the UK financial system. While third-party tech services can boost sector competitiveness, disruptions such as cyber-attacks or power outages could affect multiple firms and consumers, threatening overall stability.
CFPB Orders Navy Federal Credit Union to Refund $80 Million and Pay $15 Million Penalty
The Consumer Financial Protection Bureau (CFPB) has taken action against Navy Federal Credit Union, banning the institution from charging illegal surprise fees and mandating refunds exceeding $80 million to affected customers. In addition, Navy Federal must pay a $15 million civil penalty to the CFPB's victims relief fund.
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.
