The INFORM Consumers Act, a legislation focused on maintaining integrity, notification, and fairness in online retail marketplaces, is set to take effect on June 27. In light of this development, the Federal Trade Commission has dispatched letters to 50 online marketplaces across the country, notifying them of their responsibility to adhere to the new act. Read more here.
OFAC Settles with Swedbank Latvia for $3,430,900 Related to Apparent Violations of Sanctions on Crimea
Swedbank Latvia AS, a subsidiary of Swedbank AB, has agreed to pay $3,430,900 to settle potential civil liability for 386 violations of OFAC sanctions on Crimea. These violations occurred between 2015 and 2016 when a Swedbank Latvia customer used the bank’s e-banking platform from a Crimea-based IP address to make payments to individuals in Crimea through U.S. correspondent banks. The settlement amount reflects OFAC’s assessment that Swedbank Latvia’s actions were non-egregious and were not voluntarily disclosed. Read more here.
CFPB Issue Spotlight Analyzes “Artificial Intelligence” Chatbots in Banking
The Consumer Financial Protection Bureau (CFPB) has published an issue spotlight highlighting the growing prevalence and benefits of chatbots in the financial industry. Chatbots, programmed to imitate human interactions, aid in cost reduction for institutions by replacing customer service agents. Some chatbots employ advanced technologies, such as “artificial intelligence,” to provide personalized responses and engage customers through pop-up features. Read more here.
CFPB Finds that Billions of Dollars Stored on Popular Payment Apps May Lack Federal Insurance
The CFPB issued an issue spotlight on digital payment apps used by consumers and businesses, highlighting the potential lack of adequate fund protection during financial difficulties. Funds in these apps may not be covered by federal deposit insurance. To address this concern, the CFPB issued a consumer advisory with steps to ensure fund safety in these apps. Read more here.