Banking as a Service (BaaS) continues to be within the crosshairs of the federal authorities.
The most recent banks to be hit with consent orders from the FDIC are Sutton Financial institution and Piermont Financial institution.
Sutton Financial institution’s consent order dated February 1 was targeted on third-party threat administration. The banks should implement “a revised AML/CFT program designed to take care of financial institution compliance with the Financial institution Secrecy Act.” It should additionally compile a list of all its third-party relationships.
Piermont Financial institution’s consent order was dated February 26 and directs the financial institution to overview all transactions since September 2022 to all suspicious exercise was reported. There have been additionally new necessities for supervision of administration and third-party threat administration.
As Piermont CEO Wendy Cai-Lee commented, “Each financial institution that touches BaaS is getting an enforcement motion.”
Regardless of all this unfavorable consideration, BaaS is definitely booming with new banks nonetheless clamoring to get into the house. Fascinating instances.
Featured
> Piermont, Sutton banks hit with FDIC consent orders over BaaS
By Caitlin Mullen
The FDIC ordered Piermont to overview all transactions since September 2022 to make sure all suspicious exercise was reported. Sutton, in the meantime, should compile a list of its third-party relationships.
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> Colombian fintechs paved the way in VC investments
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Colombian fintechs have been very energetic within the VC house in 2024, with quite a lot of startups elevating over $150 million in funding to this point.
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> Chris Dean, Co-Founder & CEO of Treasury Prime on the banking-as-a-service panorama
Banking as a Service (BaaS) has gone by means of an upheaval within the first quarter of 2024. Chris Dean, CEO of Treasury Prime,…
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