Legal issues and news

A report released this week by Sen. Ron Wyden, D-Ore., shines a light on what is required of banks when high-net-worth clients engage in suspicious activity.

Opponents argued that Provident Bank, which bought Lakeland in 2024, had yet to disburse millions of dollars remaining on a mortgage subsidy fund.

The card network is buying behavioral fraud detection already running at three of the four largest U.S. banks, including Wells Fargo.

The second-largest U.S. bank provided an update to investors about the consent order issued by the OCC in 2024, saying a resolution may include monetary penalties.

The Treasury's financial crime prevention arm said the Swiss firm's U.S. brokerage wing largely ignored a 2018 consent order to clean up its anti-money-laundering processes, leading to the historic settlement announced early in August.

Fincen's Andrea Gacki will join Citi as global head of sanctions, BBVA promoted Gonzalo Rodríguez to chief financial officer, HDFC Bank penalized three senior officials for their role in a controversial deposit arrangement, and more in this week's banking news roundup.

The company is being accused of failing to seek a license from the New York State Gaming Commission and avoiding paying taxes "like licensed casinos and mobile sports gambling platforms do."

In a new paradigm of anti-money-laundering compliance, success increasingly depends not on obtaining information faster, but on recognizing when machine-generated intelligence should not be trusted.

Digital currency can be tracked and if stolen "burned," then reminted and given back to its rightful owners. That could be a powerful anti-fraud tool.

Prosecutors say a Bronx crew recruited homeless people and walked them into branches to open accounts. The controls it beat were mostly human ones, standing at a branch counter.

Industry lawyers and recruiters share the key steps bank-based advisors can take to avoid litigation or lower legal exposure when moving clients to a new firm.

A 76-year-old PNC customer lost almost $400,000 to a scam involving gold coins and a fake bill for Norton Antivirus protection. Can the bank be held accountable for failing to help him?

Dallas-based Texas Capital Bank will try for a second time to win shareholder support to switch its state of incorporation from Delaware to the Lone Star State, according to CEO Rob Holmes. If it succeeds, it will join a growing list of companies choosing the same path.

The GOP senator's push comes as UBS continues withholding records tied to predecessor Credit Suisse's World War II-era dealings.

The House Financial Services Committee's Republican majority backed slower funds availability and declined to shift authorized-scam losses onto banks.

BNY's Robin Vince and Nubank's David Velez have joined the boards of the OpenAI Foundation and OpenAI Group Public Benefit Corporation; Old National Bancorp has revamped its top leadership teams; City National Bank appointed Lindsay Dunn executive vice president and head of personal and business banking; and more in this week's banking news roundup.

The New York AG is alleging banks aren't doing enough to combat fraud on Zelle, but online fraud might be too big for even the nation's biggest banks to fight.

A New York judge refused to dismiss Attorney General Letitia James's suit accusing Zelle's operator of enabling more than $1 billion in scams.

Only 13% of scams reach federal agencies. The rest land at banks and payment apps, making them the country's de facto scam-reporting system.