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Tennessee extends authorization of remote notarization through August 29
On June 29, the governor of Tennessee issued Executive Order No. 52, extending authorization for remote notarization and witnessing of documents through August 29. The order extended the terms initially authorized in Executive Order No. 26 and previously extended by Executive Order No. 37.
OCC highlights key risks for federal banking system, says compliance risk elevated due to Covid-19
On June 29, the OCC released its Semiannual Risk Perspective for Spring 2020, which reports on key risk areas that pose a threat to the safety and soundness of national banks and federal savings associations. In particular, the OCC focused this report on the financial impacts of the Covid-19 pandemic on the federal banking industry, emphasizing that weak economic conditions stemming from the shutdown will stress financial performances in 2020, and that banks should monitor elevated compliance risks that may occur as a result of their responses to the pandemic, including participating in the Paycheck Protection Program as well as forbearance and deferred payment programs. The report highlighted that the surge in consumer demands, government programs, and the modifications to operations due to remote work and the “short timelines for implementing changes placed additional strains on banks already operating in a stressed environment.” However, the report noted that, “[s]ome banks are leveraging innovative technologies and third parties, including fintech firms, to help manage these challenges,” and that “[b]ank risk management programs should maintain effective controls for third-party due diligence and monitoring and other oversight processes, operational errors, heightened cyber security risks, and potential fraud related to stimulus programs.” The report highlighted several areas of concern for banks, including (i) credit risk increases; (ii) interest rate risk, including risks related to the LIBOR cessation; (iii) operational risks related to banks’ Covid-19 response; (iv) heightened cyber risks; and (v) compliance risks related to Bank Secrecy Act/anti-money laundering laws, consumer compliance, and fair lending.
Colorado issues rule concerning remote notarization
On June 26, the Colorado Department of State issued temporary amendments to the Notary Program Rules to authorize and establish minimum standards for remote notarization for individuals located within the state of Colorado. The amendments, which took immediate effect, set forth requirements for using remote notarization, including requirements surrounding the remote notarization system used to perform the notarizations and requirements for ensuring satisfactory evidence of identity.
Michigan extends Executive Order regarding remote transactions
On June 24, the Michigan governor announced Executive Order 2020-131, which extends a previous order that temporarily allowed e-signatures on official documents and remote notarizations (previously discussed here). Any notarial act may be performed by a notary that holds a valid notarial commission in Michigan using two-way real-time audiovisual technology if certain conditions are met. The order sets forth additional requirements for remote notarizations and continues through July 31, 2020 at 11:59 p.m.
Missouri extends executive order regarding remote notary services
On June 11, the Missouri governor issued an executive order extending, among others, Executive Order 20-08 relating to remote notary services, which was previously covered here. The extension permits notarial acts to be performed using audio-video technology, provided certain conditions are met, through August 28.
North Carolina Secretary of State issues requirements for remote notarizations
The North Carolina Secretary of State has issued requirements and FAQs for remote video notarizations, which are permissible under North Carolina’s emergency video notarization law from May 2 until August 1. The requirements specify, among other things, the identification and recordkeeping requirements for remote notarizations using video conference technology.
New Mexico extends authorization for remote notarization
On June 11, the New Mexico governor issued Executive Order 2020-039, which extends Executive Order 2020-015, previously covered here, to continue to permit notarial acts conducted through audio-visual technology, provided certain requirements are met.
Kansas extends remote work guidance for certain licensees
On June 11, the Kansas Office of the State Bank Commissioner extended its remote work guidance, previously covered here, for mortgage companies, mortgage loan originators, supervised loan licensees, credit services organizations, money transmitters, and credit notification registrants. Licensed or registered individuals and entities are permitted to work from their residences or a company designated location, provided certain requirements are met, through July 15, 2020.
Texas securities regulator halts cryptocurrency investment business
On June 5, the Texas State Securities Board (TSSB) issued an emergency cease and desist order against a New York-based cryptocurrency investment business for allegedly violating the state Securities Act by soliciting investments in Texas without obtaining the required state licenses and engaging in fraud connected to the offer of the sale of securities. Among other things, the TSSB alleged that the business’s website advertised false information, including fake photos of its “expert team” and testimonials from purportedly “satisfied clients,” and failed to disclose material facts related to how profits are generated through its purported cryptocurrency mining operation, important security information, and risks associated with cryptocurrency investments. According to the order, the business claimed investors could generate returns between 20 and 75 percent within 24 hours depending on how much is invested in the company’s mining operation. The TSSB also alleged that while the business claimed to possess the appropriate licensure to engage in cryptocurrency mining investments, the business did not have the required registrations or licenses and the investment plans “have not been registered by qualification, notification or coordination at any time material hereto, and no permit has been granted for their sale in Texas at any time material hereto.”
NYDFS launches Covid-19-era fintech program
On June 9, the New York Department of Financial Services (NYDFS) announced the launch of “DFS FastForward,” a program “to support innovators seeking to deliver new solutions in financial services, Fintech, InsurTech, and HealthTech for New Yorkers in the COVID-19 era.” DFS FastForward is intended to assist the New York marketplace in adapting to a “new normal” due to Covid-19, and NYDFS is encouraging businesses (NYDFS-regulated and non-regulated) looking to “operate novel financial services and products in New York.” Specifically, NYDFS is seeking innovations that (i) promote recovery for small businesses; (ii) provide “HealthTech” solutions to give New Yorkers better access and assistance to healthcare; and (iii) offer tools to assist consumers in building financial resilience. NYDFS is encouraging those who are interested in participating in program to complete an inquiry form.