Although the crypto industry’s legitimization took a hit on Sept. 15 when the CLARITY Act failed to advance in the Senate, the industry still exists, and banks must find ways to remain in regulatory compliance.
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Posted inArtificial Intelligence
‘Rogue’ AI raises liability and insurance questions for developers and deployers
Insurance companies anticipate multi-million-dollar claims if AI developers are sued over AI wrongdoing. Recent examples of AI autonomously hacking third-party systems and evading controls have increased concern about liability cases for both developers and deployers.
Posted inWhistleblowers
UK backs SFO proposal to reward whistleblowers to curb economic crimes
The UK has called for feedback on plans to reform its whistleblowing laws so that people who come forward with information that leads to a corporate conviction can be financially rewarded, as in the US.
Posted inBanking
OCC report on ‘debanking’ at nine largest US banks claims reputation risk policies result in denial of services
A report by the Office of the Comptroller of the Currency (OCC) finds that the nine largest US banks it oversees have used reputation risk policies to deny services to businesses and individuals based on social, political, and religious views as well as lawful banking activities.
Posted inArtificial Intelligence
Securing AI systems from cyber threats is a top priority, according to PwC’s Global Digital Trust Insights Survey
Cyber threats against AI systems are a top threat that business and security leaders say they feel least prepared to address, according to PwC’s 2027 Global Digital Trust Insights survey.
Posted inRegulatory Enforcement
BoA pays $1.21B for AML lapses and alleged sanctions violations
The US Treasury Department announced $1.21 billion in penalties against Bank of America for its lapses in anti-money laundering and alleged sanctions violations, and warned that enforcement of AML rules and federal Bank Secrecy Act compliance is a top priority.
Posted inBanking
UK financial regulator proposes economy-linked regulatory threshold to cut firms’ compliance costs
The UK’s financial services supervisor wants to scrap “nominal” regulatory thresholds to make compliance costs “proportionate” and prevent more financial firms from falling under rules simply because they have grown in size rather than risk.
Posted inBanking
CFPB targets debanking practices after OCC report
After an Office of the Comptroller of the Currency report found the nine largest national banks maintained debanking policies, the Consumer Financial Protection Bureau is taking action against them in one of its few moves under the current Trump administration.
Posted inRegulatory Enforcement
Former Wamco co-chief investment officer would pay $3M to resolve allegations of cherry-picking
Stephen Kenneth Leech II, a former co-chief investment officer at Western Asset Management Company (Wamco), has agreed to pay $3 million to settle allegations he steered hundreds of millions to certain portfolios.
Posted inArtificial Intelligence
Boards put AI investments at risk due to lack of knowledge and skills, PwC survey finds
Companies risk wasting their AI investments because boards don’t rate the information underpinning the strategy and directors don’t understand how the technology works or creates value.