On The Web

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Regulation

Facebook: the new Credit Reporting Agency?

August 22 2018

• in
• Financial regulators

Iif Facebook is selling information about a consumer’s general reputation—trustworthiness—to third parties that might reasonably be expected to use it for credit, insurance, or employment, it’s a CRA, and that means it’s subject to a host of regulatory requirements as well as civil liability, including statutory damages for willful noncompliance.”

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Global

Bank of Uganda, telecom operators ask govt to rescind mobile money tax

August 10 2018

• in
• Financial regulators
• Uganda

“The Bank of Uganda and mobile phone operators have asked the government to scrap mobile money tax, saying mobile money revenue has dipped by more than UGX 600 billion since the introduction of the tax, The Observer reported. This reduction, they say, has affected revenue collection from Mobile Money transactions. Bank of Uganda director of […]

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Global

UK Payments Regulator To Probe Card Acquiring Market

July 24 2018

• in
• Acquirers
• Financial regulators
• Non-bank Acquirers
• UK

“The PSR says the review will explore whether the supply of card-acquiring services is competitive and works in the interests of merchants, and ultimately consumers. In particular, it will address concerns that acquirers are holding on to the savings they made from EU-imposed IFR interchange fee caps, which could indicate that some merchants – especially […]

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Companies

Payments Processor Square Inc. Withdraws Banking License Application: Statement

July 9 2018

• in
• Financial regulators
• Square

“San Francisco-based payments processor Square Inc. (SQ.N) said on Thursday it had withdrawn its regulatory application to open a deposit-taking bank, but that the company plans to refile its paperwork at a later date. The fintech firm last year applied with the Federal Deposit Insurance Corp (FDIC) for a special “industrial loan company (ILC)” license that, […]

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Companies

Wells Fargo wholesale banking unit probed for fraud

September 7 2018

• in
• Financial regulators
• Wells Fargo

“The US Justice Department is probing whether employees in Wells Fargo’s wholesale banking unit committed fraud. According to people familiar with the matter that spoke to the Wall Street Journal (WSJ), this latest development follows revelations that employees improperly altered customer information.”

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Regulation

‘Fintech Charter’ Has No Early Takers as Lawsuit Looms

September 12 2018

• in
• Financial regulators
• Open banking

“The lack of immediate interest from the likes of LendingClub Corp., Square Inc., and others comes in large part from uncertainty about what activities the Office of the Comptroller of the Currency’s so-called fintech charter will allow, what regulatory requirements it will carry, and whether it will hold up in court.”

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Regulation

IRS Sending Warning Letters to More Than 10,000 Cryptocurrency Holders

July 26 2019

• in
• Cryptocurrencies
• Financial regulators

“The Internal Revenue Service has begun sending letters to more than 10,000 cryptocurrency holders, warning about penalties for failing to report income and pay tax on transactions involving virtual currencies. The agency expects its mailing to be completed by the end of August. It is sending three variations of one letter, depending on the information […]

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Companies

Betterment Faces Questions From Regulator After Launching Checking and Savings Accounts

July 25 2019

• in
• Betterment
• Financial regulators

“Regulators have asked online wealth advisor Betterment to clarify some details surrounding its new checking and savings accounts just hours after they were launched. The digital wealth-management start-up unveiled new accounts that offer as much as a 2.69% annual yield. But Betterment was asked to provide more specifics to one of its regulators almost immediately […]

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Regulation

State regulators renew legal fight over federal charter for fintechs

October 26 2018

• in
• Financial regulators

“State bank regulators on Thursday sued a federal agency that they say is overstepping its bounds by offering national bank charters to financial technology startups. The Office of the Comptroller of the Currency, which oversees national banks, this summer finalized plans to put forward a limited charter for fintech companies, allowing those firms to operate across […]

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Regulation

Japanese Online Retailer Rakuten Seeks U.S. Bank Charter

July 29 2019

• in
• Financial regulators

“Japanese online merchant Rakuten Inc. wants to open a bank in Utah to offer loans, credit cards and other financial services to customers of its existing U.S. cashback-shopping business, the company said Friday. “We’re going to focus on that customer base we already have,” said Lee Carter, the new head of banking development at Rakuten […]