News

“NYDFS GETTING A FIRM, FRIENDLY CRYPTO REGULATOR”: PYMTS.COM

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Interesting take in pymts.com on NYDFS Crypto Regulation: “NYDFS will not only remain relevant as the regulator of the largest financial center in the world, but as the obvious yardstick against which proposed national rules are measured.”   Article is found here:  https://www.pymnts.com/cryptocurrency/2022/in-adrienne-harris-nydfs-getting-firm-but-friendly-crypto-regulator/    

NYDFS SUPERINTENDENT ADRIENNE HARRIS HAS CONFIRMATION HEARING

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Want to know what’s on the mind of NYDFS Superintendent Adrienne Harris? Interesting discussion including re: crypto, fintech, the Community Reinvestment Act, and cannabis during her confirmation hearing in the NYS Senate, link here:  https://www.nysenate.gov/calendar/meetings/insurance/january-24-2022/insurance-meeting      

XAPO SURRENDERS ITS NYDFS BITLICENSE

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Xapo has informed DFS of its business decision to conclude its virtual currency business in New York. Effective January 11, 2022, Xapo surrendered its New York virtual currency license issued under 23 NYCRR Part 200.  Xapo said: “Serving the U.S. market would require quite a lot of effort, time and investment, it would require a … Read more

CONCERN INCREASES ABOUT UNFAIR REGULATORY ENFORCEMENT AGAINST INDIVIDUAL COMPLIANCE OFFCERS

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A survey indicates compliance officers are increasingly concerned about unfair regulatory enforcement against individual compliance officers.  Some findings: – 72% are concerned regulators expanded the role of compliance officers and the scope of their responsibilities in imposing personal liability. – 70% believe the overall compliance function at their firms is under resourced. – 35% reported … Read more

NYDFS ISSUES $100 MILLION PENALTY TO MASHREQBANK FOR OFAC-RELATED COMPLIANCE VIOLATIONS

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NYDFS Issued a $100  million to Mashreqbank.  Enforcement takeaways:

–  Conduct is failing to implement an effective OFAC compliance program, submitting incomplete reports to NYDFS, and failing to report misconduct to NYDFS;

–  Conduct relates to violations of federal economic sanctions against Sudan
–  NYDFS previously penalized Mashreq Bank $40 million in 2018 for a deficient BSA/AML program;

–  No monitor imposed;

–  Parallel actions by OFAC and the Federal Reserve Board.

The enforcement action may be found here:  https://www.dfs.ny.gov/reports_and_publications/press_releases/pr20211109

 

 

 

NYDFS CREATES CLIMATE RISK DIVISON

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NYDFS created a new Climate Risk Division, with a new Executive Deputy Superintendent overseeing the Division, which will:
– integrate climate risks into its supervision of regulated entities
– support industry growth in managing climate risks
– coordinate with international, national, and state regulators
– develop internal capacity on climate-related financial risks
– support capacity-building of peer regulators on climate-related supervision
– ensure fair access to financial services for all communities, especially those most impacted by climate change.

Press release is here:  https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202111032

 

 

 

 

DOJ RESCINDS PRIOR GUIDANCE ON MONITORSHIPS — NO LONGER DISFAVORED

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BIG News Out of DOJ Re: Monitorships: “To the extent that prior Justice Department guidance suggested that monitorships are disfavored or are the exception, I am rescinding that guidance. Instead, I am making clear that the department is free to require the imposition of independent monitors whenever it is appropriate to do so in order to satisfy our prosecutors that a company is living up to its compliance and disclosure obligations under the DPA or NPA.” — Deputy AG Lisa Monaco.

Announcement is here:  https://www.justice.gov/opa/speech/deputy-attorney-general-lisa-o-monaco-gives-keynote-address-abas-36th-national-institute

 

 

 

Governor Hochul Nominates Adrienne A. Harris to be the Next NYDFS Superintendent

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NYDFS WATCH: Governor Hochul has nominated Adrienne Harris, a former economic advisor in the Obama White House and Treasury Department, to be the next NYDFS Superintendent. While the press release does not specify, each of the past two Superintendents became Acting Superintendent while their Senate nomination was pending.

The link to the nomination announcement is here: https://www.governor.ny.gov/news/governor-hochul-announces-nomination-adrienne-harris-superintendent-department-financial