Legal issues and news

FDIC Chairman Jelena McWilliams revealed an effort by the banking agencies to gain better clarity on how authorities use the huge amounts of suspicious activity reports that banks must submit under anti-money-laundering laws.

Three former CU employees are subject to the latest round of prohibitions from the National Credit Union Administration.

CEO Solomon says the bank has not yet begun discussions with DOJ about its role in the scandal; the $1 billion buyback would be its first in 20 years.

Worldpay is rolling out FraudSight, a new fraud prevention tool that uses machine learning to spot suspicious transactions across all in-store and e-commerce checkout points, according to a Tuesday press release.

The suit seeks to block the banks from complying with congressional subpoenas targeting the president’s bank records, escalating his showdown with Democratic lawmakers investigating his finances.

Director Kathy Kraninger said the agency will emphasize a confidential supervisory process instead of just doling out public enforcement actions. But skeptics worry this will let companies escape punishment.

Many banks rely on the location data they get from carriers through data aggregators to spot fraudulent transactions. With telecom companies shutting that source down, banks are worried it could significantly hurt their capacity to detect fraud.

Banks need to ensure those building new business are driven to look for evidence of illegal activity.

Wall Street moves to compete with the low-fee financial services giant; activist investor has an uphill climb for a seat at this week’s annual meeting.

The bank agreed to pay $150 million to California to settle charges it hid the risks on the sale of mortgage bonds pre-crisis; foreign suitors circle Commerzbank while Deutsche Bank seeks answers.

The central bank issued an enforcement action against Sumitomo Mitsui Banking Corp. and its New York branch, citing deficiencies related to risk management and compliance with the Bank Secrecy Act.

Bradley Linskens, the former examiner-in-charge at Wells Fargo, faced scrutiny for his conduct as the top examiner of the scandal-plagued bank.

The Wisconsin Supreme Court upheld a "narrow interpretation" of a state-level consumer-protection law that maintains lenders' rights to collect debts without fear of being sued for damages.

Banks need to ensure those building new business are driven to look for evidence of illegal activity.

By allowing instant issuance to be executed from the most secure infrastructure available, PCI-CP introduces greater flexibility and protection than older standards, according to Ranjeet Khanna, vice president of financial issuance at Entrust Datacard.

A coordinated effort would make it possible to develop the widely applicable standardized processes we need by collecting perspectives from every dimension of the payments process, writes Monica Eaton-Cardone, COO of Chargebacks 911 and CIO of its parent company Global Risk Technologies.

Cathy Bessant, Bank of America’s chief operations and technology officer, offers her takeaways from the first meeting of the Council on the Responsible Use of Artificial Intelligence. She also shares some challenges banks are facing with cyberattacks and data encryption.

Credit unions have measures in place to assist members hit by fraud but many smaller institutions are challenged when it comes to an effective response.

The settlement comes as Navy makes history by becoming the world’s first credit union to exceed $100 billion in assets.

During the National Credit Union Collections Alliance conference, experts shared best practices on several topics, including navigating member bankruptcies and positioning auto loans for a downturn.