As we enter 2020, the payments and money transmission regulatory landscape continues to evolve on a state-by-state basis. Newly adopted regulations in Massachusetts affirm that “agent of a payee” transactions meeting certain criteria, as well as funds transfer services provided
MoFo ReEnforcement: The Enforcement Blog
MoFo ReEnforcement: The Enforcement Blog, published by Morrison & Foerster LLP, focuses on regulatory enforcement and compliance issues affecting financial institutions, fintech companies, and corporate entities. The blog covers topics such as anti-money laundering regulations, beneficial ownership reporting, consumer financial protection, credit market oversight, small business lending data collection, and due diligence practices for fintech partnerships. It also addresses developments in federal banking regulations, national security policy related to technology, and legislative changes impacting enforcement standards. The blog provides updates on rulemakings, regulatory guidance, and enforcement trends relevant to practitioners and stakeholders in financial services and corporate compliance.
Latest from MoFo ReEnforcement: The Enforcement Blog - Page 6
The DBO Notifies CFL Lenders of New Rate and Other Limitations Imposed by AB 539
The California Department of Business Oversight (DBO) has issued a Release that summarizes the provisions of California Assembly Bill 539 and addresses some implementation issues. This bill was chaptered as Chapter 708 of the 2019 Statutes and is effective January 1, 2020.…
Federal Regulators Issue Joint Guidance on Banking Hemp-Related Businesses
According to new guidance released on December 3, 2019, banks are not required to file suspicious activity reports on customers solely because they are engaged in the legal growth or cultivation of hemp. The guidance was issued by the federal…
Long Awaited HVCRE Rule Clarifies Capital Treatment of Certain Real Estate Loans
By Henry Fields & Mark Sobin
On November 19, 2019, the federal banking agencies issued a final rule that incorporates a new definition of an “HVCRE exposure” into the U.S. regulatory capital rules. The new definition is substantially that of an “HVCRE ADC loan” from Section…
After Madden, OCC and FDIC Propose to Reaffirm “Valid When Made” Rule
The Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation have taken steps to reaffirm the “valid when made” doctrine in response to Madden. We discuss the key takeaways from the agencies’ proposed rules and how this…
Is Payroll Processing Money Transmission? New York May Be Weighing In
By Sean Ruff & Adam Fleisher
It seems like a natural progression for a company that provides any sort of payments-related information processing to migrate from handling data about payments to seeking to handle the payments themselves. But it can be a challenge for any company,…
California Enacts Interest Rate and Other Restrictions on Consumer Loans
As expected, California has enacted legislation imposing interest rate caps on larger consumer loans. The new law, AB 539, imposes other requirements relating to credit reporting, consumer education, maximum loan repayment periods, and prepayment penalties. The law applies only to…
Uncharted Waters: California Regulator Issues Draft Commercial Financing Disclosure Regulation
By Nancy Thomas & Calvin Funk
On July 26, the California Department of Business Oversight (DBO) issued a draft regulation and draft disclosures to implement the state’s first-of-its-kind commercial financing disclosure law enacted last year. With this draft regulation, the DBO wades into uncharted waters in implementing the first law requiring…
Financial Services Report – Fall 2019
We start this issue with a feeling of déjà vu all over again. Decisions made during the mortgage crisis are back in the news with a powerhouse legal ruling and the Treasury’s initial thinking on how to turn back time.…
Volcker Rule Relief for Foreign Banking Entities
On August 20, 2019, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) approved a final rule which will amend the Volcker Rule to simplify and tailor compliance with Section 13 of the…