Regulation

Faster, more comprehensive breach notification requirements proposed

The proposed rule would, among other things, require banks to notify their primary regulators of a triggering incident as soon as possible, and no later than 36 hours after learning that the incident occurred, and would require banking service providers to notify affected bank customers immediately after experiencing a security incident that disrupts or impairs services for four hours or more. The proposed rule would fundamentally change a bank’s current notification obligations. [Continue]

The year ahead: Privacy and cybersecurity issues

The financial services industry faced unprecedented cybersecurity and privacy challenges in 2020. From learning how to operate with a remote workforce to facing an exponential rise in the number and sophistication of cyberattacks, the resilience of financial institutions was tested to its limits. These challenges continue, yet 2021 brings a new set of challenges that are likely to substantially impact financial services companies in the year ahead. [Continue]

Today’s money laundering problem is bigger than we think

Most public comments and reporting following the FinCen leaks focused on whether the government will crack down on banks over money-laundering. But blaming banks misses a bigger point. Do our systems actually permanently put us in a position of playing catch up? Is the way we do automation today deeply flawed? I think it is. Automation actually needs machine learning or it can make problems it’s meant to fix worse. And maybe it’s more than most banks can take on at the same time after all. [Continue]

Carranza gets a big start at the SBA

September 30 marked the close of the 2020 fiscal year for the country; what an enormous year it turned out to be for the U.S. Small Business Administration. When Jovita Carranza was confirmed SBA Administrator in January, there was no way for her to know the agency was on the cusp of its biggest mission since the SBA was created in 1953: Help the country and its small businesses navigate a pandemic-induced recession.  [Continue]

Regulators giving increased scrutiny to bank IT

Heightened regulatory expectations around cybersecurity, pandemic planning and business continuity are driving IT matters from banks’ back rooms to their board rooms. In our day-to-day business, we interact with a lot of bank examiners — both assisting client banks across the United States and on our own behalf as a regulated technology service provider to financial institutions. [Continue]

Tech contest

The FDIC has launched a competition to create a next-generation data gathering system for the banks it supervises. Some two dozen companies are participating in the effort to create tools that will make data collection more comprehensive, more timely and less burdensome. FDIC Chair Jelena McWilliams told the Wall Street Journal she’d like the system to be so robust that it eventually replaces the call report. [Continue]

Who was the intended PPP target?

Who were the intended PPP grant recipients? At first, it was any company with fewer than 500 employees but then companies with access to other sources of investment, particularly the capital markets, were deemed ineligible. As news about the program spread, some suggested that profitable companies shouldn’t be eligible for the money. [Continue]

Meet your FDIC Ombudsmen

Daniel Marcotte, veteran ombudsman for the FDIC’s Chicago region, and Brent Klanderud, recently appointed ombudsman for the FDIC’s Kansas City region, spent several days this spring visiting with industry professionals to explain how they advocate for bankers who might be dissatisfied with their examiner processes or the end result. [Continue]