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Daniel P. Stipano quoted in ACAMS article, “OCC begins accepting fintech charter applications, inviting second lawsuit”


Daniel P. Stipano

Daniel P. Stipano was quoted on July 31, 2018 in an ACAMS article, “OCC begins accepting fintech charter applications, inviting second lawsuit,” which discussed the Office of the Comptroller of the Currency’s special-purpose banking charter for fintechs as well as a “sandbox” that would allow the firms to test their services on clients without incurring an enforcement action. The article stated, “The OCC introduced special charters for fintechs in late-2016 but put the plan on ice after state officials, including the New York State Department of Financial Services, or DFS, claimed in a civil complaint that the federal regulator had infringed on state supervision of the firms. A judge dismissed the lawsuit in May, primarily on the basis that the OCC had yet to issue a charter by that point. Hours after the report was published Tuesday, federal regulators said they would begin accepting applications for the charter again. The regulatory sandbox the Treasury Department envisioned Tuesday would be open to startups and established fintechs alike, and involve close coordination between federal and state regulators, according to the report.”

Stipano added, “The fintech industry has floated the concept of a sandbox in recent years but the idea remains extremely difficult to implement. You can say you’re creating a sandbox in a particular area, but what if there’s a problem in that area of technology that leads to money laundering and terrorist financing? … I think a regulator would be hard pressed to take action.”

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