Matthew L. Levine

NYDFS ISSUES GUIDANCE ON OBTAINING A “NOTICE OF SATISFACTION OF AGREEMENTS”

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NYDFS issued guidance in the form of a policy statement on obtaining what it terms a “Notice of Satisfaction of Agreements.” ·       Importantly, a Satisfaction Notice does not serve as the termination of a Consent Order, Written Agreement or MOU: “Notices will not alter, rescind, or seal an Agreement, and they will not cancel any restriction imposed … Read more

NYDFS ISSUES GUIDANCE FOR BANKS REGARDING BLOCKCHAIN RISKS

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NYDFS issued guidance for regulated banking institutions concerning their approach to risks associated with cryptocurrency businesses that may be bank customers or that interact with bank customers ·       The guidance sensibly responds to the more permissive regulatory environment for cryptocurrency filtering down from the Trump Administration’s major policy shifts ·       The guidance principally relates to the use … Read more

NYDFS JOINS MULTISTATE ACTION AGAINST MONEY TRANSMITTER WISE WITH $4.2 MM PENALTY

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According to the Consent Order: •        Multistate examination found AML deficiencies  including (a) failure to provide for an independent review of the AML Program on a frequency commensurate with services provided; (b) deficiencies identified in processes for investigating and reporting suspicious activity, including the failure to timely file SARs; (c) transaction monitoring data integrity issues; (d) … Read more

NYDFS SUPERINTENDENT HARRIS AND DEPUTY SUPERINTENDENT COGHILL TALK CRYPTO REGULATION AT CONSENSUS 2025

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Some takeaways: •  On the BitLicense generally: o  Harris: New York has an outsized role to play; the BitLicense framework remains a model for the U.S. and the world o  Coghill: DFS has been very careful to uphold standard, that is very why most entities do not make it through the application process •     On the Application Process: o  Harris: Team of 60 … Read more

NYDFS SUPERINTENDENT HARRIS SAYS STRONG ENFORCEMENT OF CRYPTO TO CONTINUE EVEN AS FEDS LET UP

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According to Compliance Week: •        “The New York Department of Financial Services (NYDFS), led by Superintendent Adrienne Harris, doesn’t intend to let up on cryptocurrency enforcement, even in the face of pullback from the federal government.” •        “Speaking during a fireside chat at Compliance Week’s 20th National Conference in Washington, D.C., Harris described how her office intends to remain … Read more

NYDFS JOINS IN MULTI-STATE ENFORCEMENT ACTION AGAINST BANKRUPT MONEY TRANSMITTER

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Enforcement takeaways (according to the Consent Order allegations): •        NYDFS appears more inclined recently to act with other regulators under the auspices of the Conference of State Banking Supervisors and Money Transmitter Regulators Association.  The action grew out of a multi-state investigation and subsequent Interim Cease and Desist Order filed by the agencies in March 2024. •        NYDFS … Read more

NYDFS ANNOUNCES NEW HEAD OF ENFORCEMENT AND “DFS CONNECT” REGULATORY MANAGEMENT PLATFORM

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In a pair of recent announcements, NYDFS:   Announced the appointment of Gabriel O’Malley as the permanent Executive Deputy Superintendent for the Consumer Protection and Financial Enforcement Division.  He joins after serving for many years in enforcement at the CFPB. Announced the launch of its regulatory management platform “DFS Connect.”  According to the agency’s announcement, … Read more