Bank Settles CFPB Charges For Improper Sales Practices Concerning Overdraft Protection Services

A bank settled CFPB charges for enrolling customers in an overdraft-protection service using improper sales practices. According to the CFPB, the bank’s failures included “failing to obtain consumers’ affirmative consent” to enroll in the service and the subsequent charging of overdraft fees.

In a CFPB Consent Order, the Bureau stated that the institution did not present new customers with written disclosures concerning the service prior to enrollment, in violation of CFPB Rule 1005.17 (“Requirements for overdraft services”), and that […]

By | August 11th, 2020 ||

FinCEN Issues New FAQ On CDD Requirements For Covered Financial Institutions

FinCEN issued new guidance on customer due diligence (“CDD”) requirements for covered financial institutions. FinCEN addressed the (i) collection of customer information, (ii) creation of customer risk profiles and (iii) requirement to perform ongoing monitoring of customer relationships.
Customer Information – Risk-Based Procedures
FinCEN clarified that covered financial institutions are not categorically required to (i) collect particular information beyond what is required to develop a customer risk profile, conduct ongoing monitoring and identify beneficial owners, (ii) conduct media […]

By | August 5th, 2020 ||

Trade Associations Tout Digitization Of Financial Markets

ISDA and several other industry group associations (the “Associations”) expressed their joint commitment to moving financial markets toward a “digital future.”

In a letter addressed to the Financial Stability Board, IOSCO and the Basel Committee on Banking Supervision, the Associations emphasized the benefits of new technology. The Associations stated that moving towards a digital future will result in (i) standardized risk management processes and the introduction of “real-time regulatory oversight,” and (ii) more efficient operational processes in […]

By | August 3rd, 2020 ||