On March 29, the Federal Crimes Enforcement Network (FinCEN), in collaboration with other federal agencies, issued a Notice and Request for Information and Comment (Notice and Request) seeking public comment on its proposal to amend the Customer Identification Program (CIP) Rule requirement for banks to collect a taxpayer identification number, among other information, from a U.S. customer prior to opening an account. Usually, for a U.S. customer this requires banks to collect a full Social Security number (SSN). The amendment comes in response to pressure from fintechs, specifically providers of buy-now, pay-later products that rely on bank partners, for an accommodation from the CIP Rule.

Today, a divided Federal Deposit Insurance Corporation’s (FDIC) Board of Directors issued a proposed Statement of Policy (SOP) on bank merger transactions that would create a combined bank with more than $100 billion in assets. The proposed SOP would replace the FDIC’s current SOP on bank merger transactions and proposes a principles-based overview that describes

On March 12, at the Institute of International Bankers Annual Washington Conference, Acting Comptroller of the Currency Michael J. Hsu discussed the importance of operational resilience in the banking sector and hinted that potential regulations aimed to promote the same may be forthcoming.

In a recent speech at Vanderbilt University, Acting Comptroller of the Currency Michael Hsu discussed his views on the potential risk of financial instability due to the merging boundaries between banking and commerce. In his speech, Comptroller Hsu underscored the importance of vigilance, especially in the realms of payments and private credit/equity, where he predicts the risk of this ‘blurring’ is most imminent. The Comptroller also advocated for the analytic framework recently adopted by the Financial Stability Oversight Council (FSOC) as having the greatest potential to identify and address emerging financial stability risks.

In the realm of bankruptcy sales, the role of a stalking horse bidder in a Section 363 sale is crucial. This bidder sets the baseline bid, protecting the debtor from receiving unreasonably low bids for its assets. In return, the stalking horse bidder receives certain protections, such as a break-up fee and reimbursement of reasonable expenses, which are outlined in the asset purchase agreement.

Editor’s Note: In recent regulatory and enforcement developments, the White House announced a new executive order aimed at strengthening cybersecurity at U.S. ports, and another executive order was issued to protect sensitive personal information. Additionally, the FCC prohibits using AI to clone voices. Data breach litigation continues to surge with one company striking a class action settlement agreement with payments of up to $75,000 per class member. In an interesting twist, the beauty company L’Occitane is suing a law firm seeking declaratory judgment that California’s wiretapping law is unconstitutional. Internationally, the Canadian government investigates a breach of its own agency, and ASEAN and the EU published a joint guide on cross-border contractual clauses.