Financial Services Blog

Showing 17 posts in Operations & Transactions.

What Prepaid Accounts Are Subject to the New Prepaid Rules? What you need to know to be ready.

Prepaid cards are increasingly popular—they are frequently used instead of traditional bank accounts to shop, withdraw cash from ATMs, pay for healthcare costs from health savings accounts, distribute natural disaster aid, and pay wages. Read More ›

Fintech Companies are No Longer in “Uncharted” Territory

The Office of the Comptroller of the Currency (OCC), a subset of the U.S. Treasury Department, recently announced that it will create a special purpose national bank charter specifically for financial technology (fintech) companies. This announcement comes on the heels of the rapid rise in fintech and in the number of companies that use such technology. An official charter aims to supervise the more than 4,000 fintech companies more closely and provide a framework for new companies to operate in the financial services industry.  Read More ›

The Medieval Economics of Cryptocurrency

Medieval kings have something in common with cutting-edge software developers forking new applications off the blockchain. Read More ›

ICOs: Cloud-Based But Likely Grounded in Regulations

Initial coin offerings (ICOs) are garnering substantial attention as investors hope their digital coins will soon be worth more than gold and software developers envision them as a way to boot-strap financing.  Read More ›

A House Divided: U.S. District Court Splits on Whether Class Has a Private Right of Action Against “Money Transmitters”

Two class action lawsuits, Hucke v. Kubra Data Transfer LTD., Corp., No. 2-15-cv-14232-RLR, and  Pincus v. Speedpay, Inc. Case No. 9:15-cv-80164-KAM, [1] in the U.S. District Court for the Southern District of Florida, seek the determination of whether two credit card processors violated the following Florida statues: Read More ›

Fed’s Advice to Community Banks on Bitcoin: “Proceed … with Caution”

Community Banks need to be aware of the risks posed by cryptocurrencies like Bitcoin, because their prevalence will only increase, writes the Federal Reserve Bank of San Francisco.  Wallace Young, the Director of the Federal Reserve Bank of San Francisco, in the recent article “What Community Bankers Should Know About Virtual Currencies” in Community Banking Connections, outlines four risks undertaken by community banks that interact with businesses in the virtual currency ecosystem: Compliance, Reputational, Credit, and Operational. Read More ›

Is .bank Right For You? The Pros & Cons

Many banks are now evaluating the pros and cons of using the new “.bank” domain.  For those not already in the know, rather than continuing to use the generic “.com” domain, qualifying banks can soon switch to a more descriptive .bank top-level domain name.  For example, a bank’s website address might read www.XYZinstitution.bank, rather than www.XYZinstitution.com; and its emails name.employee@XYZinstitution.bank.  In 2012, fTLD Registry Services, LLC (formed by the Financial Services Roundtable and the American Bankers Association) applied to ICANN for the right to issue and manage the .bank generic top-level domain names.  On September 25, 2014, fTLD was granted these rights, and it promptly established a roll-out schedule for the issuance of the .bank domain name.  For those few financial institutions who hold registered trademarks in their names, open enrollment began last Sunday, May 17, 2015.  For all the other banks, those without registered trademarks, general availability enrollment will begin at 8:00 pm, EDT, on June the 23rd. Read More ›

New Savings Options Authorized for Retail Customers

Towards the end of 2014, two new national savings laws were signed by President Barack Obama.  The first is American Savings Act, H.R. 3374.  To encourage consumer savings, this Act permits financial institutions to offer prize-linked savings products.  Citing the need to improve the country’s saving rate by American households, and following the success the State of Michigan saw with its own similar program, the Act permits a saving promotion raffle to be offered by insured financial institutions, including federal savings and loan institutions.  A permitted savings promotion raffle is a contest in which the consideration for entry is obtained by the deposit of a specified amount of money into a savings account or other savings program offered by a financial institution. Read More ›

Remote Deposit Capture Technology- Changing Liability for Double Presentment?

The Board of Governors of the Federal Reserve System (“Board”) is proposing important changes to Regulation CC, 12 C.F.R. § 229, which implements the Expedited Funds Availability Act of 1987 (“EFA Act”) and the Check Clearing for the 21st Century Act of 2003 (“Check 21 Act”).  See Availability of Funds and Collection of Checks, 79 Fed. Reg. 6674-01 (proposed Feb. 14, 2014) (to be codified 12 C.F.R. § 229).  The Board’s proposal includes a revised regulatory framework for subpart C of Regulation CC, dealing with the forward collection and return of checks.  In particular, the Board’s proposal would amend 12 C.F.R. § 229.34 to provide new indemnity provisions relating to remote deposit capture services. Read More ›

TD Bank’s Settlement Agreement Provides Insight on State Privacy Concerns

TD Bank recently agreed to pay $850,000 as part of a multi-state settlement agreement with state attorneys from Connecticut, Florida, Maine, Maryland, North Carolina, New Jersey, New York, Pennsylvania, and Vermont. While the assurances in the settlement agreement only bind TD Bank, other companies with electronic records containing consumers’ personal information can benefit from this agreement by interpreting its requirements as minimum standards for their internal security policies and procedures. Read More ›

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Attorney Spotlight

Christopher C. Tieke is an associate in Frost Brown Todd's Louisville office, focusing his practice on business litigation. He graduated from the University of Cincinnati College of Law, with magna cum laude honors; served as an Associate Member of the University of Cincinnati Law Review; and participated in the Entrepreneurship and Community Development Clinic.

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