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Staying On Top of Vendor Management News: Week of October 30

Nov 3, 2017 by Branan Cooper

In light of Halloween, we've got some spooky third party risk management news to share with you this week.

  • Back from the dead - first national bank charter approved since the financial crisis
  • CFPB continues haunting banks on UDAAP issue
  • Tricks, not treats... Third party involvement in Missouri bank UDAP violation
  • The terrifying cost of compliance
  • Hilton settles for $700K over data breach

Articles From Week of October 30 to Check Out

Credit unions should take note – NAFCU is already involved in monitoring Equifax but also means it’s going to be a front burner issue and one you’d likely expect questions about in your next NCUA exam: Read here

Ballard Spahr analysis of the OCC acting director’s comments on proposed fintech charter. Bottom line – lots of ideas but really lack any sort of substance or timeline:Read here

Back from the dead - First national bank charter approved since the financial crisis – yes, you read that right – first one in over 8 years – that’s how challenging today’s banking environment is: Read here

CFPB continues haunting banks on UDAAP issues – an article from JD Supra: Read here

Tricks, not treats... Third party involvement in Missouri bank UDAP violation

  • Missouri bank ordered to pay $5 million restitution
    Mid America Bank & Trust Company, Dixon, Missouri, has been issued a consent order by the Federal Reserve Board directing that the bank pay approximately $5 million in restitution to nearly 21,000 consumers for deceptive practices in violation of section 5 of the FTC Act related to balance transfer credit cards issued by the bank through third parties. See   Penalty page for further information.


Not just a ghost story - the big political news this week is perfect reminder how often Anti Money Laundering laws become such powerful enforcement weapons and why our clients need to make sure they are on top of their AML due diligence game: Read here

The terrifying cost of compliance – and you wonder why it’s tough to make money in the financial services industry? Read here

They didn’t stand a ghost of a chance once the NY attorney general got involved! Breaches can be expensive.

  • Hilton settles for $700K over data breach
    Hilton Worldwide agreed to pay $700,000 after a data breach exposed 363,000 credit card numbers, reports Reuters. The states of New York and Vermont will each receive $400,000 and $300,000 respectively. New York Attorney General Eric Schneiderman said a breach occurred in late 2014 and another the following year, reports Fortune. Under the settlement, Hilton is required to disclose breaches more quickly and adhere to data safety standards, according to Reuters

TCPA and its increasing complexity: Read here

Although this is AML related, it is a stark reminder on the importance of appropriate due diligence and following up on inconsistencies found in due diligence responses: Read here

To learn more about conducting thorough vendor due diligence, download our guide. 

Vendor Due Diligence Guide

Branan Cooper

Written by Branan Cooper

Branan Cooper is the Chief Risk Officer at Venminder. Branan has nearly 30 years of experience in the financial services industry with a focus on the management of operational and regulatory processes and controls—most notably in the area of third party risk and operational compliance. Branan leads the Venminder delivery team as the third party risk management subject matter expert in residence.

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