The technology lab of FDIC (FDiTech) published a new guide to help financial technology, or fintech, companies and others partner with banks. The guide is designed to help third parties understand the environment in which banks operate and navigate the requirements unique to banking. FDiTech is working to develop additional tools and resources to increase opportunities for partnerships and eliminate unnecessary burdens and costs associated with third-party risk management. This guide is the first in a series of new resources from FDiTech.
The guide is an initial effort to address concerns of banks and technology companies across the country. Banks tailor their review of third parties to their specific needs and the type of arrangement they are entering into. However, the following general considerations might help third parties prepare for the due diligence process:
- Understand the framework of laws and regulations that apply to banks
- Maintain a well-managed and financially strong business
- Be prepared for the questions banks may ask and for potential remediation of concerns
- Demonstrate that the business has appropriate monitoring systems in place
Keywords: Americas, US, Banking, Fintech, FDiTech, Third-Party Arrangements, Third-Party Risk, FDIC
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.