Matthew L. Levine

NYDFS CONTINUES ENFORCEMENT ACTIONS FOR UNLICENSED ACTIVITY — $3.5 MILLION PENALTY AGAINST BANNER LIFE INSURANCE COMPANY

by

NYDFS continues its actions against insurance companies for allegations of unlicensed activity occurring in New York.  NYDFS leveled a $3.5 million penalty against Banner Life Insurance Company for unlicensed conduct relating to the pension risk transfer (PRT) business, where companies that carry pension obligations sell them to insurance companies to meet into the future. According … Read more

FDIC HAS BEGUN REGULATORY INVESTIGATIONS OF CRYPTO FIRMS

by

THE FDIC has joined the party, commencing investigations and issuing cease and desist letters for what it deems are misrepresentations concerning the applicability of FDIC insurance to the accounts of crypto customers. Other regulatory investigations of recent crypto firm failures include some state banking regulators/AGs. More on this from Coindesk:   https://www.coindesk.com/policy/2022/07/07/fdic-probing-voyager-claims-it-was-insured-by-regulator-report/ https://www.coindesk.com/policy/2022/07/28/crypto-lender-voyager-ordered-by-us-regulators-to-stop-misleading-customers/    

OFAC APPEARS TO BE RAMPING UP ENFORCEMENT IN THE CRYPTO SPACE

by

According to reporting from Coindesk, OFAC appears to be ramping up enforcement in the crypto space — mentions of Kraken and Binance. See article here:  https://www.coindesk.com/policy/2022/07/26/kraken-under-investigation-for-alleged-sanctions-violations-report/?utm_source=Sailthru&utm_medium=email&utm_campaign=FIRST%20MOVER%20JULY%2027%202022&utm_term=First%20Mover

NYDFS SUPERINTENDENT HARRIS INDICATES NFT GUIDANCE FORTHCOMING

by

At an ACAMS conference NYDFS Superintendent Adrienne A. Harris stated that guidance on non-fungible tokens — NFTs — will be forthcoming. “You will continue to see leadership from DFS in virtual currency,” Harris said, adding that the regulator intended to advise the financial sector on non-fungible tokens,” A Financial News article covering the discussion is … Read more

NYDFS $5 MILLION CYBERSECURITY ENFORCEMENT ACTION AGAINST CARNIVAL CRUISE LINES

by

More cybersecurity enforcement from NYDFS, this time against Carnival Cruise Lines.  Enforcement takeaways: Carnival Cruise Lines paid $5 million and surrendered its license to be an insurance broker in New York.  It had sold life, accident and health insurance to cruise customers. NYDFS alleged “significant” violations, including: Failure to implement multi-factor authentication; Failure to timely … Read more

OCC FINDS HEIGHTENED RISK TO FINANCIAL INSTITUTIONS BASED ON SHORTAGE OF QUALIFIED COMPLIANCE PROFESSIONALS

by

Strong compliance personnel remain one of the best investments for a financial institution, and an ongoing challenge, per the OCC: “Compliance risk remains heightened…. [T]he OCC has observed an increase in the competition for compliance subject matter experts, at both the bank management and staff levels.” The OCC Report may be found here:   https://www.occ.treas.gov/publications-and-resources/publications/semiannual-risk-perspective/files/semiannual-risk-perspective-spring-2022.html  

NYDFS ISSUES FIRST-IN-THE-NATION STABLECOIN GUIDANCE

by

Its finally here:  first-in-the-nation stablecoin guidance for regulated cryptocurrency entities.  Some highlights: Backing and Redeemability: The stablecoin must be fully backed by a Reserve of assets, meaning that the market value of the Reserve is at least equal to the nominal value of all outstanding units of the stablecoin as of the end of each … Read more

NYDFS ENFORCMENT ACTION FOR $5.6 MILLION AGAINST NATIONWIDE LIFE INSURANCE CO FOR VIOLATIONS RELATED TO ANNUITY REPLACEMENT

by

NYDFS entered into a consent order with Nationwide Life Insurance Company for $5.6 million in penalties and restitution arising from violations alleged to have occurred in connection with the annuity replacement business.  According to NYDFS, “DFS’s investigation found that Nationwide failed to properly disclose to consumers income comparisons and suitability information, causing consumers to exchange … Read more

NYDFS SUPERINTENDENT HARRIS SAYS “REGULATORS NEED TO DEVELOP A ’21ST CENTURY FRAMEWORK’ FOR CRYPTO”: AT LINKS 2022 CONFERENCE

by

At the Links 2022 Conference, NYDFS Superintendent Adrienne A. Harris stated that “the regulatory agency will triple the size of its virtual currency unit by the end of the year.” Its ambitious — but much needed. Superintendent Harris “said her agency is working to hire additional staff and update its guidance to better deal with … Read more

NYDFS ISSUES GUIDANCE ON USE OF BLOCKCHAIN ANALYTICS BY REGULATED CRYPTO FIRMS

by

NYDFS issued guidance concerning the use of blockchain analytics by regulated cryptocurrency firms.  NYDFS stated:  “The purpose of this guidance … is to emphasize to all virtual currency business entities that are either licensed under 23 NYCRR Part 200 or chartered as a limited purpose trust company … the importance of blockchain analytics to effective policies, … Read more