OCC Announces Enforcement Actions for January 2024
The OCC issued enforcement actions against national banks, imposing Cease and Desist Orders and Formal Agreements for compliance issues. Individuals from banks like Santander and Wells Fargo face Orders of Prohibition due to criminal convictions, emphasizing the OCC’s commitment to accountability. Read more here.
Industry Letter: Guidance on Assessment of the Character and Fitness of Directors, Senior Officers, and Managers
The New York State Department of Financial Services instructs Covered Institutions to establish and maintain a framework for evaluating the character and fitness of directors, senior officers, and managers. The guidance emphasizes ongoing vetting, risk-based approaches, and reporting during corporate transactions, with the Department reviewing policies during safety and soundness examinations. Read here.
U.S., UK, and Australia Target Additional Hamas Financial Networks and Facilitators of Virtual Currency Transfers
The U.S. Treasury’s OFAC imposed new sanctions on Hamas, targeting financial networks and cryptocurrency transfers, aiming to disrupt their financial support for terrorist activities. Sanctioned individuals and entities are accused of materially supporting or providing aid to Hamas under Executive Order (E.O.) 13224. Learn more here.
Expert Insights: The Compliance Risks of Artificial Intelligence
AI and machine learning help financial institutions with tasks like fraud prevention, but concerns include data quality and regulatory compliance. Ensuring data integrity and meeting legal requirements are crucial. Institutions value AI’s efficiency gains but stress the need for human oversight to ensure compliance efforts’ integrity and fairness. Learn more here.
Hawai‘i Digital Currency Innovation Lab to conclude after four years of research
Hawai‘i’s Digital Currency Innovation Lab (DCIL) concludes on June 30, 2024. Digital currency companies in the state won’t need a Hawai‘i money transmitter license, allowing unregulated operations. They must comply with federal regulations, and consumers are urged to exercise caution in dealings with digital currency firms and unregulated markets. Read more here.