Enforcement

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

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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 ROUNDUP: CRYPTO, CYBERSECURITY, AND INSURANCE COMPANIES”: MATTHEW LEVINE PUBLISHES ARTICLE IN NEW YORK LAW JOURNAL

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Matthew Levine published his most recent article on NYDFS titled “NYDFS Roundup:  Crypto, Cybersecurity, and Insurance Companies.”  The article begins: “Change has been a constant at the New York State Department of Financial Services.   Since its first Superintendent departed the agency in June 2015, there have been six confirmed and acting Superintendents for DFS.  With … Read more

NYDFS CYBERSECURITY UPDATE: NYDFS HOLDS WEBINAR MARKING FIFTH ANNIVERSARY OF CYBERSECURITY REGULATION

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NYDFS held the first of three webinars marking the 5th anniversary of adoption of its Cybersecurity Regulation, known as “Part 500.”  The webinar featured from NYDFS Justin Herring, Executive Deputy Superintendent for Cybersecurity, William Petersen, Assistant Deputy Superintendent for Cybersecurity Supervision, and Robert Francis, its CIO.  Some takeaways: The Cybersecurity Division has now grown to … Read more

MATTHEW LEVINE SPEAKS ON ENFORCEMENT RISK FOR BANKS, FINTECHS AND VENDORS AT ABA BUSINESS LAW SECTION MEETING

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Matthew Levine spoke on a panel at the ABA’s Business Law Section’s Hybrid Spring Meeting on enforcement risks for banks, fintechs and their vendors.   As the regulatory perimeter continues to develop, the enforcement risk for regulated financial institutions, fintechs, and third-party service providers, including notably the technology companies that work with them, remains a key … Read more

FUTURE OF NYDFS ENFORCEMENT — MORE HOT TAKES FROM LAW360 INTERVIEW WITH SUPERINTEDENT HARRIS — PART TWO

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Hot takes from Part Two of Law360’s interview with NYDFS Superintendent Adrienne A. Harris: NYDFS intends to streamline the Bitlicense application process but “without sacrificing regulatory rigor.” Diversity in the Board and management of regulated financial institutions is a “safety and soundness” issue. Superintendent Harris’ favorite musical artist is Jay-Z. Part Two of the Law360 … Read more

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