Tag Archives: financial institutions

11th Circuit Answers When Would-Be ‘Customers’ May Bring a FINRA Arbitration Against FINRA Members and Associated Persons

Last week, in Pictet Overseas, Inc. v. Helvetia Trust, the Eleventh Circuit U.S. Court of Appeals affirmed a Florida district court’s order permanently enjoining two offshore trusts from pursuing a FINRA arbitration against a FINRA member and its associated person owners. In Pictet, two offshore trusts, Helvetia Trust and AAA Group International Trust, held custodial … Continue Reading

OCC Lays Groundwork for National Fintech Charters

Recently, the OCC has begun to lay the groundwork for future national fintech charters, relying on an existing federal law which grants the OCC receivership powers over non-depositary financial institutions, which would permit the OCC to grant charters to fintech companies without their having to obtain insurance from the FDIC. In a release issued on … Continue Reading

Financial Stability Oversight Council Releases 2016 Annual Report

The Financial Stability Oversight Council (FSOC) has released its 2016 Annual Report, which was unanimously approved by its voting members on Tuesday, June 21, 2016. The FSOC is required by Congress to report on their activities annually. The Dodd-Frank Act created the FSOC in order to properly identify risks that may pose challenges in the … Continue Reading

FinCEN Finalizes Customer Due Diligence Rule

May 6, 2016, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury (FinCEN) finalized regulations that will require banks, securities broker dealers, mutual funds, futures commission merchants, and introducing brokers in commodities (collectively, Covered Institutions) to identify and perform due diligence on the ultimate beneficial owners and control persons of any legal … Continue Reading

Tyson Foods, Inc. v. Bouaphakeo: Supreme Court Upholds Use of Statistical Evidence in Class Actions

This week, the Supreme Court issued its decision in Tyson Foods, Inc. v. Bouaphakeo,  577 U. S. ___(2016). The key issue addressed is whether class certification was proper in a FLSA case where the methodology used to establish damages was determined by expert sampling and assumptions about how long it would take certain categories of … Continue Reading

Financial Regulatory Changes Underway

Adoption of the Corporate Governance Annual Disclosure Model Act and the Corporate Governance Annual Disclosure Model Regulation Insurance company executives are used to the scrutiny and standards of fiduciary care that may apply to their positions. The standards that apply can be complicated for an insurance company’s senior executives, who have responsibilities related to their … Continue Reading

Recent DOJ and Regulatory Actions Against Smaller Institutions Suggest That Community Banks Should Continue to Carefully Consider BSA/AML Risks

In recent months, certain small banks have come under increased investigation by FinCEN, federal bank regulators, and in some instances the Department of Justice (DOJ) for alleged non-compliance with the Bank Secrecy Act (BSA) and alleged failure to implement effective anti-money laundering programs. It is important for small banks to keep this development in mind … Continue Reading

AML Developments – FDIC Announces That It Will End Its Supervisory Trend of Expecting Regulated Institutions to ‘De-Risk’ Entire Categories of Customers

On Jan. 28, 2015, the Federal Deposit Insurance Corporation (FDIC) in a Financial Institutions Letter (FIL) announced that it would, in effect, do an about-face on its supervisory expectation that banks strongly consider discontinuing the provision of financial services to entire categories of certain purportedly high-risk customers. These categories of customers included, to name a … Continue Reading
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