January 2022 – FinTech and Blockchain Law Watch

The Fed Wants Your Input On A Potential Digital Dollar

Jan 26 2022

By Jeremy M. McLaughlin and Daniel S. Nuñez Cohen

Last week the Federal Reserve Board (the “Fed”) issued a discussion paper entitled “Money and Payments: The U.S. Dollar in the Age of Digital Transformation” (the “Paper”). The Paper explores the advantages and disadvantages of the Fed issuing a central bank digital currency (CBDC or digital dollar); key design considerations of such a currency; and seeks feedback from the public on 22 specific questions directed at those topics. Comments are due by May 20, 2022. Given that Congress has indicated its interest in the Paper, digital asset and financial services industry participants should use this opportunity to have their voices heard by the Fed and members of Congress.

Do Consumers Really Need More Financial Protections? The UK Government Says Yes!

Jan 20 2022

By Judith Rinearson and Kai Zhang

In May 2021, the UK‘s Financial conduct authority (FCA) published a consultation paper proposing there would be a “new consumer duty“.[1] The central proposition is that a firm must deliver “good outcomes” for consumers which is then supplemented by additional requirements.

AML Scrutiny in the UK: The Trend Towards Culture of Compliance

Jan 18 2022

By Kai Zhang

On 14 December 2021, National Westminster Bank Plc (“NatWest“), a major bank in the UK, was fined by the Financial Conduct Authority (“FCA“) close to £265 million for failure to comply with the relevant anti-money laundering (“AML“) requirements with respect to one single client, a Yorkshire jewelry company (“the Client”) during the period from 8 November 2012 to 23 June 2016 (the “relevant period“). The fine would have been nearly £398 million, but NatWest pleaded guilty and therefore was given a reduction. In addition, slightly over £460,000 of crime money was confiscated (which is essentially the fees NatWest gained from the Client.).

Archive:January 2022