- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jeff Dale2024-07-22T19:09:00
The Federal Reserve Board of Governors fined financial technology and bank holding company Green Dot $44 million for numerous unfair and deceptive practices and a deficient consumer compliance risk management program.
Green Dot failed to adequately disclose the tax refund processing fee for services offered on a third party’s website, blocked access to accounts of legitimate customers receiving unemployment benefits, lacked reasonable policies and procedures to help customers cure blocks, and did not maintain effective consumer compliance risk management or Bank Secrecy Act/anti-money laundering (BSA/AML) programs, the Fed alleged in a press release Friday.
The company estimated in March it would pay between $20 to $50 million to resolve liabilities related to the alleged misconduct. The Fed ordered the company to implement certain compliance undertakings, including hiring an independent third party to strengthen its consumer compliance risk management program.
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Four federal banking regulators have joined the Treasury Department’s Financial Crimes Enforcement Network in issuing a notice of proposed rulemaking that would require financial institutions to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs.
Financial institutions would be required to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs under a new rule proposed by the Treasury Department’s Financial Crimes Enforcement Network.
Financial technology firm Green Dot Corp. estimated a pending consent order with the Federal Reserve Board will require a payment of between $20 million to $50 million.
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