Financial Technology Law: Federal Laws

Department of Homeland Security cybersecurity workforce assessment and strategy

The National Protection and Programs Directorate of the Department of the Homeland Security is renamed the Cybersecurity and Infrastructure Security Agency.

Exempts voluntarily shared critical infrastructure information from the Freedom of Information Act

Cybersecurity Information Act of 2015

Improving cybersecurity in the health care industry

FEDERAL CYBERSECURITY ENHANCEMENT

Reporting on cyber incidents with respect to networks and information systems of operationally critical contractors and certain other contractors

Federal Trade Commission Act

Allows a consumer to put a freeze on their credit reports for free upon suspicion of identity theft.

The Electronic Signatures in Global and National Commerce Act (ESIGN)

Cybersecurity Enhancement of Commerce and Trade, but no additional funds or regulatory authority

Civil forfeiture is a remedy that the US government can pursue against money launderers. 981(a)(1)(A) subjects to civil forfeiture any property involved in a transaction or attempted transaction in violation of 18 USC 1956 or 1957, or any property traceable to such property.

Fraud and related activity in connection with identification documents, authentication features, and information

Aggravated identity theft

Fraud and related activity in connection with access devices

Computer Fraud & Abuse Act (CFAA)

Fraud and related activity in connection with electronic mail (CAN-SPAM Act)

Wire fraud

Communication interference

Engaging in monetary transactions in property derived from specified unlawful activity. The court may impose a fine of not more than twice the amount of the criminally derived property involved in the transaction.

Interception and disclosure of wire, oral, or electronic communications prohibited

Unlawful access to stored communications

The purpose of money laundering is partly to avoid paying taxes.

The Bank Secrecy Act requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering. Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities. Bank customers can also be guilty of violating these sections.

Beneficial ownership information reporting requirements to FinCen. (Corporate Transparency Act of 2024).

1/23/25

Identity Theft Red Flags

On Nov. 21, 2024, the Consumer Financial Protection Bureau (CFPB) issued a final rule (Rule), pursuant to 12 U.S.C. § 5514(a)(1)(B), to establish supervisory authority over nonbank entities identified as larger participants in the general-use digital consumer payment applications market. While the CFPB already has enforcement power over digital funds transfer and payment wallet app providers, the Rule subjects “larger participants” of this market to CFPB supervisory examinations, similar to banks and credit unions. The Rule will apply to companies that facilitate at least 50 million “consumer payment transactions” per year, higher than the five million threshold contemplated in the CFPB’s initial proposal, and its scope extends only to U.S.-dollar transactions (digital asset transactions are excluded). The rule goes into effect 1/9/25

PRIVACY OF CONSUMER FINANCIAL INFORMATION

STANDARDS FOR SAFEGUARDING CUSTOMER INFORMATION

FINANCIAL CRIMES ENFORCEMENT NETWORK

RULES FOR MONEY SERVICES BUSINESSES