🚨 FDIC Hits Cross River with Consent Order
What happened:
The FDIC issued a consent order against Cross River Bank for “unsafe or unsound banking practices” related to its BaaS (Banking-as-a-Service) operations, including deficient oversight of fintech partners.
Why it matters:
• Reinforces growing regulatory pressure on partner bank models
• Highlights the importance of third-party risk management
• Consent orders are becoming a first resort, not a last warning
What to watch:
If you’re operating with a BaaS model or sponsor banks, reassess oversight frameworks — especially transaction monitoring and KYB controls.
🌍 FATF Suspends Russia — What’s the Impact?
What happened:
FATF has formally suspended Russia’s membership, citing concerns tied to geopolitical conduct and financial system integrity.
Why it matters:
• Signals increased scrutiny of Russian counterparties
• Compliance teams should review exposure to Russia-aligned jurisdictions
• Expect stricter enforcement in EU and UK regimes
Practical step:
Update your geo-risk models and monitor changes in correspondent banking rules.
📜 UK Adds Corporate Fraud Offense
What happened:
The UK passed an update to the Economic Crime and Corporate Transparency Act — introducing a strict liability offense for failure to prevent fraud.
Why it matters:
• Applies to large organizations and subsidiaries
• Modeled after the Bribery Act
• May influence laws in Canada, Australia, or even U.S. states
Takeaway:
Treat fraud prevention like anti-bribery — controls, documentation, training, and tone from the top.