News

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

“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