State Regulators Roll Out One Company, One Exam for Nationwide Payments Firms

  • Source: csbs.org

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Article Highlights:

The Conference of State Bank Supervisors (CSBS) announced the creation of Money Services Businesses (MSB) Networked Supervision (Networked Supervision). Under this state regulatory initiative, nationwide money services business, including payments and cryptocurrency firms, will be able to satisfy all state regulatory requirements with a single examination. In a Networked Supervision examination, one state will lead each exam, but the examination team will consist of staff from multiple state agencies. Networked Supervision will allow more efficient deployment of state supervision resources while providing state supervisors and examiners with additional insight into MSB risks and practices. In addition, Networked Supervision could ease regulatory burden on companies by permitting consolidated and streamlined examinations.

The advent of Networked Supervision results from the CSBS FinTech Industry Advisory Panel, one of the CSBS Vision 2020 initiatives to coordinate and streamline nonbank licensing and supervision.  Networked Supervision of MSBs is the culmination of a multi-year effort by the CSBS, which included an analysis of State MSB regulation and supervision, evaluation of how cryptocurrencies fit into the state regulatory perspective, creation of an industry advisory panel, accreditation of State agencies for MSB supervision, and a pilot of the one-company, one-examination approach.

Author

Lynn Woosley

Lynn Woosley is a Senior Director with Treliant.  She is a seasoned executive with extensive risk management experience in regulatory compliance, consumer and commercial credit risk, credit and compliance risk modeling, model governance, regulatory change management, acquisition due diligence, and operational risk in both financial services and regulatory environments.