Emil Dall’s Post

Fintech companies and their sponsor banks are under increased scrutiny from regulatory bodies like the Federal Reserve, OCC, and FDIC. With third-party arrangements introducing various risks, clear risk management practices are essential. Fintechs can no longer rely on sponsor banks to absorb all risks for growth, especially given the evolving market challenges and dynamics. #Fintech #RiskManagement #RegulatoryCompliance https://lnkd.in/gBsymbmM

If you plan to get involved with #FinTechs be prepared for the scrutiny. Examiners are taking a deep dive into this area and hammering banks that don’t appropriately address the #risks. #tprm #riskmanagement #thirdparty

Today, federal bank #regulatory agencies issued a statement reminding #banks of the #risks associated with #thirdparty arrangements for delivering deposit products and services. While the agencies support #innovation and the safe, compliant use of these arrangements, they have identified various safety, compliance, and consumer-related concerns. The statement outlines potential risks, #effectivemanagement practices, and relevant existing #legal requirements without introducing new supervisory expectations. Additionally, the agencies are seeking further information on a wide range of bank-fintech partnerships, including those involving #deposits, #payments, and #lending. They are interested in understanding these arrangements better and evaluating effective risk management practices. The agencies are considering whether further actions are needed to ensure proper risk management in these partnerships. #fintech #themoreyouknow

What Happens When Depositing Over $10,000 in Cash at the Bank? Have you ever wondered about the process and regulations involved in depositing a large sum of cash at the bank? Whether you’ve just closed a big deal or hit the jackpot, depositing more than $10,000 can be more complex than you might think. Our latest blog post covers: - The detailed procedures banks follow for large cash deposits - The importance of the Currency Transaction Report (CTR) and Financial Crimes Enforcement Network (FinCEN) regulations - Potential penalties for structuring deposits to avoid reporting - Practical tips to stay compliant and avoid hefty fines - The role of advanced money counter machines in managing large cash transactions Stay informed and avoid the pitfalls of non-compliance. Learn how to handle large cash deposits smoothly and securely. Read the full article here: https://lnkd.in/gxD5MMTJ #Banking #Finance #CashDeposit #MoneyManagement #Compliance #FinCEN #BankSecrecyAct #Nucoun #Moneycounter

Very good read on the typology related to foreign student money mules and Fintel Alliance collaboration on this real issue.

#corresponndant banking Things that should be considered in determining brokerage relations with #foreign banks The lack of accuracy in creating brokerage relationships, as well as the lack of active and conscious movement in relations with different brokers, taking into account the political, economic and other components of that financial #institution, will lead to problems for the bank, as well as not paying attention to the criteria of preference in choosing banks. The #broker includes the extent of their banking #network, the speed and ease of moving #funds, the #settlement of inter-bank #accounts through the announced channels in various common world #currencies, the issuance and acceptance rate of commitments and #guarantees and so on.; Also, the key financial indicators of the banks in question such as the capital base, asset volume, asset health, asset return and capital adequacy rate, and the lack of necessary expertise in the fields related to inter-bank relations and continuous monitoring of the performance of broker banks, especially in the context of the lack of proper management of possibilities. Ahead (risk management), electronic crimes, #money laundering, etc. In the framework of international law governing international #financial institutions, it exposes the bank to #risk. Human error in various fields such as providing incorrect information to brokers or their #auditors and important publications such as Banker's Almanack and The #Banker are other things that are considered operational risks. a correspondent bank is an authorized financial institution that provides services on behalf of another financial institution. Correspondent bank's #services may include #funds transfer, settlement, check clearing, and wire #transfers.

ACH and The Importance of Routing Transit Numbers As the years progress, #ACHpayments are increasing in popularity and in usage but when using such a #payment method, it’s important to have the right #data and information available. John Hutton, Global Head of Payments at LexisNexis Risk Solutions, joined #FinextraTV for this interview, exploring what #ACH payments are and what risks can be involved. Hutton goes on to discuss both the simplistic detail of having the right routing transit number and how their organisation works in #collaboration with #Nacha to bring the right data to clients. https://lnkd.in/eecSbzax #fintech #finance #financialservices #financialinstitutions #banks #banking #payments #paymentservices #paymentnetworks #RoutingTransitNumbers #clearing #ACHnetwork #DirectDeposits #DirectPayments #paymentprocessing 

On 12 November 2024, the Financial Conduct Authority (FCA) fined Metro Bank (UK) £16.7 million for serious lapses in its transaction monitoring controls, having processed 60 million transaction worth £51bn without adequate oversight. Having relied on automated transaction monitoring, Katya Davis, Financial Crime Manager here at Thistle Initiatives, outlines the questions organisations need to ask themselves, to strengthen their transaction monitoring frameworks and reduce exposure to financial crime risks. Click here to read more: https://hubs.la/Q02YTlYS0 #MetroBank #TransactionMonitoring #FCA #FinancialCrime

Hot off the press! The Federal Reserve, FDIC, and OCC have issued the Joint Statement on Banks' Arrangements with Third Parties to Deliver Bank Deposit Products and Services. The statement highlights potential risks like Operational and Compliance, Growth, and End User Confusion and Misrepresentation of Deposit Insurance Coverage. It also covers Risk Management and Governance Considerations such as Governance, Third-Party Risk Management, AML/CFT/Sanctions Compliance, Managing Growth, and Addressing Misrepresentations of Deposit Insurance Coverage. Regulatory scrutiny of these relationships continues to be on the rise, emphasizing the need to analyze, identify, and mitigate risks with appropriate controls. Happy reading! #Fintech #TPRM #Compliance #JointAgencyStatement

On 28 November 2024, Cinkciarz.pl sp. z o.o. and Conotoxia sp. z o.o. received a letter from ING Bank Slaski terminating all bank accounts, with implementation of the decision within 30 days. The alleged reason given was 'reputational risk'. ING's decision will negatively affect 84,932 existing customers, who will be deprived of instant currency exchange and other key financial services. It is another example of unjustified actions taken by banks that harm users' interests and distort market competition. We call on the Office of Competition and Consumer Protection (UOKiK) to take decisive steps in this case. Cinkciarz.pl Sp. z o.o. and Conotoxia Sp. z o.o. also announce the filing of formal claims against ING Bank Slaski for 4 billion PLN.