Dozens of fintech firms are delaying their applications for special-purpose banking charters from the U.S. Office of the Comptroller of the Currency after state officials filed a civil complaint seeking to block the federal regulator, say sources. The lawsuit, which targets the OCC on behalf of the Conference of State Bank Supervisors, aims to scrap the recently unveiled federal charter system for fintechs altogether, arguing that it exceeds the U.S. Treasury Department's authority, unfairly preempts state rights and was introduced without the 90-day comment period that typically follows a proposed regulation. The case represents a "bid for power from state...
The U.S. Office of the Comptroller of the Currency is moving ahead with plans to engage with financial technology services firms under a new presidential administration, a senior regulator told attendees of a recent industry conference.
Dozens of technology-based financial services firms, or fintechs, are establishing robust anti-money laundering programs to boost their credibility with banks and avoid regulatory penalties, even as regulatory expectations for the industry remain uncertain, say sources.
Technology-based financial service providers are struggling to obtain accounts at global banks which, despite investing millions of dollars to develop the industry, remain skeptical of their ability to manage its risks, say analysts.