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Financial Services Industry Penalties

Holland & Hart LLP

Open Banking Rules are Finally Here: What's Next for the Financial Services Industry

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On October 22, 2024, the Consumer Financial Protection Bureau (CFPB) issued its long-anticipated Open Banking Rule (the Open Banking Rule) under Section 1033 of the Dodd-Frank Act, fundamentally reshaping the data-sharing...more

Walkers

Obligation for independent AML Audits under the Anti Money Laundering Regulations – What you need to know

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Conducting an independent AML audit at a frequency based on the nature, scale and complexity of the entity is a requirement under the AML Regulations. AML audits are an important component of the control environment to...more

Troutman Pepper

Massachusetts Federal Court Orders Key Credit Repair to Pay $50M for Misleading Claims and Advance Fees

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The U.S. District Court for the District of Massachusetts recently denied a credit repair organization’s motion for partial summary judgment and granted the Consumer Financial Protection Bureau (CFPB or Bureau) and the...more

Pillsbury Winthrop Shaw Pittman LLP

New UK Trade Sanctions Enforcement Body Goes Live October 10, 2024

New UK enforcement body goes live and new powers granted to existing body, regulating those doing business in the UK. UK trade sanctions enforcement risks are set to increase on October 10, 2024, as two government agencies...more

Carlton Fields

SEC Penalties for Off-Channel Communications: Still Blowing in the Wind

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The SEC has increased its enforcement efforts against firms that are registered as broker-dealers and/or investment advisers for alleged violations of federal securities laws involving “off-channel communications.” Such...more

Hinch Newman LLP

FTC Announces Final Rule Banning Fake and False Consumer Reviews and Testimonials

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On August 14, 2024, the Federal Trade Commission announced a Final Rule combatting bogus consumer reviews and testimonials by prohibiting their sale or purchase. The Rule allows FTC lawyers to strengthen enforcement, seek...more

The Volkov Law Group

State Street’s $7.45MM OFAC Penalty Highlights Importance of Sanctions in M&A Due Diligence

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The U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) has released a $7.45 million penalty against State Street Bank and Trust Company and its non-bank, fintech subsidiary Charles River Systems for...more

American Conference Institute (ACI)

U.S. Implications of the EU AI Act

The European Union (EU) is leading the global charge with AI regulations. U.S. companies are not beyond their regulatory reach, however, and should be preparing their AI risk mitigation efforts accordingly....more

K&L Gates LLP

Brussels Regulatory Brief: Winter 2023-2024

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Antitrust and Competition - The European Court of Justice Held Rules Set by Sports Governing Bodies Must Comply With EU Competition Law - On 21 December 2023, the European Court of Justice (ECJ) held in a preliminary ruling...more

Vinson & Elkins LLP

New CFTC Enforcement Policy Increases Penalties to Deter Recidivists

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The U.S. Commodity Futures Trading Commission (“CFTC” or “Commission”) — the federal agency tasked with regulating the U.S. derivatives markets, which includes futures, swaps and certain kinds of options — has recently taken...more

Payactiv

Consumer Protection Priorities in Earned Wage Access Legislation

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In recent years, earned wage access (EWA) – an innovative technology that enables workers to access their own, already earned wages without having to wait for payday – has rapidly become a table stakes employee benefit. By...more

Flaster Greenberg PC

Corporate Transparency Act

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PLEASE TAKE NOTE: Beginning on January 1, 2024, the Corporate Transparency Act (“CTA”) goes into effect. The CTA imposes new federal reporting requirements on most organizations formed or doing business in the United States....more

The Volkov Law Group

Pain in the App: Messaging Apps Lead to Large SEC Enforcement Actions

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On September 29, 2023, the U.S. Securities and Exchange Commission charged several firms with recordkeeping failures. These recordkeeping failures relate to pervasive and longstanding off-channel communications.  Generally,...more

Buchalter

Florida Enacts Commercial Financing Disclosure Law, Mandatory Compliance Date January 1, 2024

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Florida has enacted its own Commercial Financing Disclosure Law (“CFDL”) that is similar to California and New York’s disclosure laws. The Florida CFDL applies to covered “Commercial Financing Transactions” consummated on or...more

The Volkov Law Group

Bank of America Hit with $250 Million in Penalties for Account Abuse Practices

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Bank of America joined the club of consumer abusers – Wells Fargo had been the well-established leader of this club and the poster-child for abusive consumer practices.  For years, Bank of America avoided federal...more

ArentFox Schiff

New York Pushes For New Cybersecurity Requirements For Financial Services Companies

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The New York State Department of Financial Services (DFS) has set forth a revised proposed second amendment to 11 NYCRR Part 500, the regulation regarding cybersecurity requirements for financial services companies (the...more

White & Case LLP

Repos in Islamic Finance

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1. Why Repos are important for the Islamic finance industry - Islamic finance is a full-fledged financial system, including well-established banking, capital markets, money markets and insurance products and practices....more

Hudson Cook, LLP

CFPB Bites of the Month - 2022 Annual Review - Biggest Fines and Penalties

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In this article, we share a list of the biggest fines and penalties from our monthly "bites" for 2022. So, what happened in 2022?...more

Kohn, Kohn & Colapinto LLP

Danske Bank Scandal Proves Need for AML Whistleblower Law

Nearly 10 years after former employee Howard Wilkinson blew the whistle on Danske Bank, the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) have issued over $2 billion in penalties against the...more

Alston & Bird

Payments Docket - June 2022

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Welcome to the first edition of the Payments Docket, our roundup of key litigation involving the payment industry. This edition features a stolen cell phone number used to buy cryptocurrency, a pair of class actions accusing...more

Sheppard Mullin Richter & Hampton LLP

OCC and FinCEN Issue $200 Million in Penalties for BSA-AML Violations

On March 17, the OCC and FinCEN issued civil monetary penalties against a federal savings bank for “willfully” failing to meet minimum compliance program requirements and shoddy suspicious transaction reporting. The consent...more

Sheppard Mullin Richter & Hampton LLP

OCC and FinCEN Issue $9 Million in Penalties for BSA-AML Violations

On December 16, 2021, the Office of the Comptroller of the Currency (“OCC”) and the Financial Crimes Enforcement Network (“FinCEN”) issued civil monetary penalties against a Texas community bank for violations of the Bank...more

Akin Gump Strauss Hauer & Feld LLP

[Podcast] The SEC and FCA Annual Reports: Facts, Figures, Trends

In this episode, Akin Gump financial regulatory partner Helen Marshall and white collar defense and government investigations practice co-head Michael Asaro look at SEC and FCA’s annual reports to discuss similarities,...more

Faegre Drinker Biddle & Reath LLP

Robinhood’s $70 Million FINRA Penalty: Growing Pains, Reliance on Technology and Push to Offer New Products

Robinhood, “an introducing broker-dealer that provides commission-free trading to retail customers through its website and mobile applications,” recently agreed to pay a record-setting amount of $70 million — consisting of a...more

Hogan Lovells

The end of the insurance loyalty penalty?

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Yesterday the FCA has published its final report on its market study into general insurance pricing practices. The proposals include significant reforms including banning the so-called loyalty penalty, to prevent consumers...more

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