Legislation that would pave the way for financial institutions to transact with cannabis-related businesses operating in states that have legalized marijuana (herein “cannabis-related legitimate businesses”) is quickly working its way through the House of Representatives. The SAFE Banking Act of 2019 was introduced in the House by Rep. Ed Perlmutter (D-CO) on March 7, 2019. … Continue Reading
The Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2605, regulates loan servicers and makes servicers liable for violations of and consumer-protection regulations promulgated under the act. In many cases, plaintiffs seek to hold banks and mortgage owners—so called “principals”—vicariously liable for a servicer’s violations of RESPA. That theory has met with some success … Continue Reading
The FDIC over the past few years has taken meaningful steps to facilitate and promote the formation of de novo banks. Late last week, the agency made several significant moves to bolster that effort. In separate actions, the FDIC: issued a request for information seeking comments on how to improve the deposit insurance application process; issued an update to … Continue Reading
A cyber threat detection company has identified a Nigerian-based hacking group that is engaging in a spearphishing campaign against financial institutions. Spearphishing is a directed email phishing campaign that is typically aimed at those with responsibilities relating to financial transactions. In this case, the group in question has compiled a list of over 35,000 CFOs … Continue Reading
On the heels of FinCen and Federal Banking Agencies releasing a joint statement “Encouraging Innovative Industry Approaches to AML Compliance,” Under Secretary for Terrorism and Financial Intelligence Sigal Mandelker announced a new collaborative era during the American Bankers Association’s Financial Crimes Conference, and emphasized the need for private/governmental working relationships and partnerships in order to combat … Continue Reading
From 2000 to 2007—the seven years leading up to the recent financial crisis—the FDIC received more than 1,600 applications for deposit insurance, an average of more than 200 per year. More than 1,000 new banks ultimately were formed over this same period. During and following the financial crisis, however, de novo bank formations became almost … Continue Reading
In a recent blog post on the Federal Trade Commission (FTC) Consumer Information blog, the FTC warned home buyers of an e-mail and wire transfer phishing scam in which hackers pose as real estate professionals or title companies and request buyers to wire their closing costs to the scammer’s account. The FTC noted that hackers … Continue Reading
