Legal issues and news

The bank is accusing its fintech rival of racketeering for raiding its offices across nine states and stealing an untold amount of confidential information.

Less than half the information banks share under the program relates to money laundering or terrorist financing, by Fincen's own count. Most is fraud.

The USA Patriot Act passed on an overwhelming bipartisan basis in the wake of the 9/11 attacks, overhauling banks' involvement in anti-money-laundering efforts.

The global rise of online gambling has created a range of new money-laundering risks for banks and other companies, according to the Financial Action Task Force, an international standard-setting organization.

Consumer advocacy group Better Markets filed a lawsuit in federal district court Thursday claiming the Federal Reserve's top regulator coached bankers on how to comment on proposed capital rules in "secret meetings."

A consulting firm working for BMO Harris flagged the processor's charge-back problem in 2015. The FTC says the shell accounts kept coming through 2023.

A federal judge found SVB Financial's management negligently prioritized yield over safety, allowing the Federal Deposit Insurance Corp. to retain the deposits after the bank's 2023 collapse.

Researchers showed a message with no return address slips past Reject Direct Send. Credit unions were told to close this kind of gap in 2021.

Banks say the cost and complexity of anti-money laundering compliance — including enhanced due diligence and filing suspicious activity reports — is a major barrier to serving cannabis-related businesses.

The Federal Housing Finance Agency has barred 51 people from working with Fannie Mae and Freddie Mac this year, the most suspensions in any calendar year.

IDScan.net removed the pages naming its bank and credit union integrations after KrebsOnSecurity traced 153 million license scans to the company.

The controlling owner of Santa Fe-based Century Financial Services Corp. wound up in bankruptcy court. Now his 71% stake is on the verge of being sold to an Oklahoma bank.

The billion-dollar Dallas bank had been cited for money laundering concerns, and its recent conversion to a national charter drew sharp criticism from Sen. Elizabeth Warren.

One of the benefits of the Clarity Act is that it would codify much of digital asset firms' anti-money-laundering responsibilities. This is good news for banks that have been understandably nervous about counterparty risk.

The Commodity Futures Trading Commission asked a federal court to drop a suit filed by the Chicago Mercantile Exchange challenging the agency's decision to let Kalshi offer bitcoin perpetual futures contracts, known as perps.

Regulators issued a joint statement Wednesday clarifying that banks can discuss facts surrounding suspicious activity with customers so long as they do not disclose the existence of a suspicious activity report explicitly. 

Erin Piacenti, 32, was a vice president at Bank of America and the mother of a five-month-old baby. On her way home from work, she was stabbed to death in what New York police called a "random and unprovoked attack."

A ruling by the U.S. Court of Appeals for the 9th Circuit last week allowing Nevada to regulate prediction markets like Kalshi creates a split with the 3rd Circuit, meaning the Supreme Court will ultimately have to settle the issue.

U.S. District Judge Jed Rakoff called the agreement "fair, reasonable and adequate," clearing the way for lawyers to begin distributing money to about 90 women who were sexually abused or trafficked by Epstein and the people around him.

Five payment companies were named as defendants in a case that could set a precedent for both prediction markets and the financial firms working with them.