Matthew L. Levine

FUTURE OF NYDFS ENFORCEMENT — HOT TAKES FROM LAW360 INTERVIEW WITH SUPERINTENDENT HARRIS -PART ONE

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Hot takes from Part One of Law360’s interview with NYDFS Superintendent Adrienne A. Harris: NYDFS will focus on “kitchen table” Issues, so consumer-facing businesses will be in focus for enforcement efforts. BSA/AML/OFAC enforcement “continues to be incredibly important.” Three — “Predatory behavior” and “cybersecurity governance and protocols” also will be enforcement emphasis. Part One of … Read more

WHAT HAPPENS WHEN A COMPANY FLUBS A MONITORSHIP?

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What happens when a company flubs a monitorship?  It certainly can get worse for the company.  According to this order issued against ZTE Corporation by the Court:  “[T]he Court encourages the Government to pursue any reasonable charges and criminal or civil penalties in all cases known and currently unknown. This is especially true for the … Read more

NYDFS ISSUES $8.25 MILLION ENFORCEMENT ACTION AGAINST MONEYGRAM

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NYDFS issued an enforcement action with an against money services business Moneygram.  Some takeaways: $8.25 million civil monetary penalty. Classic typology of “many-to-one” transactions was highly suspicious. Store front agents accounted for dramatic spike in volume and dollar value of payments sent to China in short time period. No monitor imposed but remediation and reporting … Read more

DOJ EXTENDS MONITORSHIP AT DEUTSCHE BANK

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The U.S. Department of Justice extended the monitorship it had imposed on Deutsche Bank.   Some takeaways: DOJ found that Deutsche Bank violated a 2021 Deferred Prosecution Agreement relating to FCPA matters. The violation arose because Deutsche Bank  “untimely reported” unrelated allegations concerning the purported overstating of the use of ESG criteria in another business line. … Read more

NYDFS ANNOUNCES STRENGTHENED CRYPTO TRACING TO ENFORCE RUSSIAN SANCTIONS

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According to NYDFS:  “As part of DFS’s work to become a leading, data-driven regulator of the global financial services sector, the Department has been assessing a number of technology tools and service providers to augment current supervisory capabilities. Accelerating the procurement process is a critical step to strengthen the Department’s ability to enforce anti-money laundering … Read more

NYDFS ISSUES ADVISORY RELATING TO UKRAINE SITUATION REGARDING CYBERSCURITY, CRYPTO, AND SANCTIONS

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In light of the Russian invasion of Ukraine, NYDFS issued an advisory concerning compliance issues relating to cybersecurity, cryptocurrency and sanctions. Press release found here:  https://www.dfs.ny.gov/industry_guidance/industry_letters/il20220225_ukraine_escalation_impact_financial  

NYDFS ENFORCEMENT ACTION FOR BSA/AML/OFAC VIOLATIONS AGAINST NATIONAL BANK OF PAKISTAN

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NYDFS takes enforcement action against the National Bank of Pakistan.  Some takeaways: $35 million civil monetary penalty NYDFS may impose independent consultant or monitor after a year in the event progress on remediation is unsatisfactory There is a parallel settlement with the Federal Reserve Board which includes a $20 million penalty as well. The NYDFS … Read more

NYDFS SUPERINTENDENT ADRIENNE A. HARRIS SITS FOR FIRESIDE CHAT WITH BROOKINGS CENTER ON REGULATION AND MARKETS

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NYDFS Superintendent Adrienne A. Harris sat down for a fireside chat with the Brookings Institution’s Center on Regulation and Markets.  Here are some takeaways: –   On Enforcement:  NYDFS will be focusing enforcement on “kitchen table” issues. –  On Cybersecurity:  NYDFS is working on updating and improving its cybersecurity regulation. –  On Climate Change:  NYDFS will … Read more

NYDFS COMPLETES FIRST INVESTIGATION BY OFFICE OF PHARMACY BENEFITS INTO PRICE SPIKE

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NYDFS completed its first investigation by the new Office of Pharmacy Benefits regarding a price spike.  According to NYDFS findings:  “Cipla has entered into an agreement with OPB to put in place new internal controls governing the reporting of drug prices and will report on the implementation and maintenance of those new controls in one … Read more