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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Jaclyn Jaeger2023-02-14T16:00:00
Comerica Bank has been battling allegations for years of mishandled fraudulent transactions in violation of U.S. federal banking laws. A series of class-action lawsuits against the bank recently certified by a federal district court judge provide scope into the alleged failings.
In 2008, the Treasury Department selected Comerica as its financial agent to distribute monthly benefit payments to roughly 4.5 million veterans and Social Security recipients through the Direct Express prepaid debit card program. The current agreement between the agency and bank is not set to expire until January 2025.
“For most cardholders, this payment is their sole source of income and is essential for basic living needs, such as housing, food, and medicine,” according to the Treasury. Yet, thousands of Direct Express cardholders have reported being robbed of these basic essential needs after being targeted by fraudulent and unauthorized transactions. An investigation spearheaded by Sen. Elizabeth Warren (D-Mass.) in October 2018 described the Direct Express program as “plagued by incidents of criminals impersonating beneficiaries and draining their accounts.”
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News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
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Our lowest price ($1 per day) for one year.
2023-03-10T20:22:00Z By Aaron Nicodemus
In the largest U.S. bank failure since 2008, Silicon Valley Bank was closed and its approximately $175 billion in deposits placed under control of the Federal Deposit Insurance Corporation.
2022-05-06T15:00:00Z By Jaclyn Jaeger
In exclusive interviews with Compliance Week, former USAA insiders describe a risk and compliance culture in which numerous individuals either were given the axe or quit because the problems were so endemic.
2022-02-18T19:00:00Z By Jaclyn Jaeger
Financial services firm Comerica disclosed in a regulatory filing the Consumer Financial Protection Bureau is investigating certain of its business practices.
2024-06-28T19:30:00Z By Jeff Dale
A Bank of England report warned of private equity risk management deficiencies as interest rates remain stagnant, with international coordination important.
2024-06-20T15:40:00Z By Aaron Nicodemus
Compliance departments at financial institutions must become more involved in ensuring their firm’s operational resiliency to address emerging risks, the Treasury Department’s Office of the Comptroller of the Currency said in its semi-annual risk perspective.
2024-06-07T22:34:00Z By Adrianne Appel
Compliance has been “sleeping on” artificial intelligence, two panelists discussed at Compliance Week’s Women in Compliance Summit. The profession should be positioned to lead on AI governance at the business level.
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