NYDFS ISSUES PROPOSED REGULATION ALLOWING COLLECTION OF DATA CONCERNING BANKING SERVICES OFFERED TO MWBE BUSINESS

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NYDFS has announced a proposed regulation allowing banks to collect data concerning banking services offered to Minority and Women-Owned Businesses (MWBE) under the Community Reinvestment Act.  From Superintendent Harris:  “Banks must meet the needs of all consumers, including minority and women business owners, who historically have been denied fair access to credit,” said Superintendent of … Read more

REVISED NYDFS CYBERSECURITY REGULATION COULD BE IMMINENT

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The Wall Street Journal has reported that amendments to Part 500, the NYDFS Cybersecurity Regulation, could by issued by the agency in the near future.  From the WSJ article:  “”Last week’s consent order, one of three multimillion-dollar cybersecurity settlements NYDFS has reached in recent months, comes as the agency prepares to propose regulatory updates that … Read more

NYDFS TAKES $4.5 MILLION CYBERSECURITY ENFORCEMENT ACTION AGAINST EYEMED VISION CARE

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NYDFS has taken another cybersecurity enforcement action, this time against vision insurance company EyeMed.   NYDFS leveled a  $4.5 million penalty against the company.   From its findings: “The Department’s investigation revealed that as a result of a July 1, 2020 phishing attack, a bad actor gained access to a shared EyeMed email mailbox which contained over … Read more

NYDFS TO RELEASE GUIDANCE FOR REGULATED BANKS DOING CRYPTO

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According to an interview given by NYDFS Superintendent Adrienne A. Harris to the Wall Street Journal, NYDFS will release guidance for regulated banks that interact with customers handling crypto or want to engage in the business themselves.  Superintendent Harris to WSJ: “Where some regulators have said, “No, banks, don’t engage in this at all,” we’ve … Read more

FINCEN AND OFAC TEAM UP IN EXTRAORDINARY ENFORCEMENT ACTIONS AGAINST CRYPTO EXCHANGE BITTREX, INC

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FinCEN and OFAC teamed up to issue parallel enforcement actions against crypto exchange Bittrex, Inc. for alleged violations of BSA/AML and OFAC regulations, with penalties of $29 million and $24 million being issues, respectively. Previously in 2019, NYDFS had rejected Bittrex’s application for a license to operate in New York, finding amount other things that … Read more

MATTHEW LEVINE SPEAKS ABOUT MONITORSHIPS AND THE MONACO MEMO AT ABA LONDON WHITE COLLAR CONFERENCE

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Matthew Levine spoke about Monitorships and the latest USDOJ Monaco Memo at the American Bar Association Criminal Justice Section Tenth Annual #ABA London #WhiteCollar Institute.  Also on the panel were  experts Vincent DiCianni Christine Braamskamp Audrey Harris and the Honorable Robert Buckland.  A video of the panel is here: https://www.youtube.com/watch?v=uG14Z7s7xzY

NYDFS ISSUES ENFORCEMENT ACTION AGAINST RHINEBECK BANK FOR FAIR LENDING VIOLATIONS

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NYDFS issued an enforcement action against Rhinebeck Bank for alleged fair lending violations.  Rhinebeck paid a $950,000 penalty.  From the NYDFS findings: “The Department’s investigation found that Rhinebeck’s practices resulted in minority borrowers paying higher interest rates than non-Hispanic white borrowers for their automobile loans, without regard to their creditworthiness….Although the Department did not find … Read more

NYDFS SUPERINTENDENT SPEAKS ON REGULATORY REACH

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NYDFS Superintendent Adrienne A. Harris spoke to the Times Union newspaper about the regulatory reach of the agency and challenges in staffing:  “[Harris] spent the first six months on the job conducting a staff analysis, prompting her to conclude that the agency is understaffed, especially considering its regulatory reach.” More on the interview in the … Read more

NASDAQ TO ENTER CRYPTO CUSTODY BUSINESS AND SEEK NYDFS LICENSE

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Law360 reports that NASDAQ will be jumping into the crypto custody business for institutional investors.   NYDFS will be reviewing their application, according to Law360. Coindesk reporting on this may be found here:  https://www.coindesk.com/business/2022/09/20/nasdaq-starts-crypto-custody-services-for-institutional-clients/  

DOJ ANNOUNCES REFORMS TO THE MONITORSHIP PROCESS

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Deputy Attorney General Lisa Monaco announced needed reforms and important updates to corporate criminal enforcement policies including for monitorships. New guidance will seek transparency and consistency in how to identify, select and oversee monitors. Documented selection process and program will be oriented to tailor work plans to identified deficiencies. Aim is to keep Monitorship on … Read more