Financial crimes

When the San Bernardino shooter obtained a loan online, he reportedly used his real name, which wasn't on the government's sanctions-screening list, underscoring the limitations of identity verification technology.

The Consumer Financial Protection Bureau decried an appeals court ruling last week that found its single-director structure unconstitutional, saying the opinion was "wrongly decided" and had "no basis in the text of the Constitution or in Supreme Court case law."

Fintech circles are abuzz about the possibilities for streamlining compliance work following IBM's deal to buy Promontory. Artificial intelligence software could help separate false positives from true violations, for example, or read and parse through lengthy regulations.

Federal Reserve Gov. Lael Brainard said in a speech Friday that distributed ledger technology — known as "blockchain" — has great potential for the payment system and important markets, but most of those applications are still years away from maturity.

WASHINGTON — The Basel Committee will move forward with its final regulatory capital rules by yearend despite threats from the European Union that its members may choose to ignore the standards out of fear that they might stifle growth.

Treasury Secretary Jacob Lew on Friday sought to reassure banks they would not be penalized for the unforeseeable consequences of their presence in certain foreign areas, a fear that has driven a trend called de-risking.

As the financial world comes to grips with the news that the European Union has no intention of implementing the final elements of Basel III, observers are scrambling to figure out how much impact the split could have on U.S. banks and global financial stability.

Strategies include developing formal agreements with partners defining the anti-money-laundering requirements and responsibilities that are expected of them.

In a stunning move, the European Union signaled that it will not follow the Basel Committee's recommendations on standardized credit, operational and market risk rules, citing concerns that the direction of the proposals would unduly increase capital requirements and stifle economic growth.

A federal judge has silenced — at least temporarily — a whistleblower who brought charges of misconduct at the parent company of Bank of Internet USA in San Diego.