- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-06-20T20:20:00
As financial institutions (FIs) mull potential growth opportunities with digital asset and artificial intelligence (AI) tools, one regulator warned against leaving risk and compliance teams out of the loop.
Michael Hsu, acting head of the Treasury Department’s Office of the Comptroller of the Currency (OCC), said in a speech Friday at an American Bankers Association conference that some FIs myopically view risk and compliance considerations as “drags on innovation and profitability.”
Instead of rushing to market, Hsu said FIs should consider a more measured approach, in which risk and compliance considerations are embedded into a product’s development from the start.
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Acting Comptroller of the Currency Michael Hsu said he favors requiring more mid-sized U.S. banks to conduct the same rigorous recovery planning as the largest banks, part of a lesson learned from the collapse of three mid-sized banks in 2023.
Federal Reserve Board Governor Michelle Bowman argued banking regulators should move from their current reactive posture on banking innovation to a position that actively encourages new technologies, business models, and ideas to solve age-old problems.
New guidance from the Office of the Comptroller of the Currency advises banks to tailor their risk management strategies and lending oversight for “buy now, pay later” plans.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued an alert to financial institutions about their obligations to report deepfakes, warning artificial intelligence has given bad actors additional tools in their arsenal.
A nationwide rental outlet affiliated with Rent-a-Center and its chief executive have been sued by the Consumer Financial Protection Bureau for allegedly deceiving five million consumers about the terms of credit agreements.
A lack of risk visibility is causing companies to reject customers–and potentially lose money–over fears they might be in danger of violating rules around anti-money laundering and sanctions regulations.
