The Conference of State Bank Supervisors (CSBS) has launched three new online tools to help the industry navigate the state regulatory system and protect against cyber risks.  The tools are:

• A portal of state agency guidance for nonbank financial services companies.
• An interactive map of agent-of-the-payee exemptions from money transmission laws.
• A new cybersecurity 101 resource center for banks and nonbanks alike.

The state regulatory guidance portal will help nonbanks keep up to date with state regulatory guidance.

The interactive map for what are known as agent-of-the-payee exemptions identifies states that do not require a money transmitter license to receive a payment on behalf of a third party. The map includes state-by-state summaries of exemption requirements.

The cybersecurity 101 resource center offers a non-technical guide and related information to help financial institutions develop comprehensive cybersecurity programs.

The tools are part of CSBS Vision 2020, a roadmap of initiatives to modernize nonbank licensing and supervision.

On Aug. 28, the Federal Financial Institutions Examination Council (FFIEC) issued a statement emphasizing the benefits of using a standardized approach to assess and improve cybersecurity preparedness.

The council noted that firms that adopt a standardized approach are better able to track their progress over time and share information and best practices with other financial institutions and regulators.

Institutions may choose from a variety of standardized tools aligned with industry standards and best practices to assess their cybersecurity preparedness.  These include:

• FFIEC Cybersecurity Assessment Tool
• National Institute of Standards and Technology Cybersecurity Framework
• Financial Services Sector Coordinating Council Cybersecurity Profile
• Center for Internet Security Critical Security Controls

While the FFIEC does not endorse any particular approach, these standardized tools all support institutions’ self-assessment activities.  The tools are not examination programs and the FFIEC members take a risk-focused approach to examinations.  As cyber risk evolves, examiners may address areas not covered by all tools.

On Aug. 30, employees of several licensees informed the Department of Business Oversight they had received suspicious emails with the return address of a department examiner, Haben Hagos.

The DBO conducted an internal investigation and confirmed that the emails contained a link to a website that may contain malicious software or attempt to steal login passwords from visitors.  The emails were sent by someone outside the DBO and were crafted to appear to be legitimate emails from the DBO examiner.  The DBO regrets any inconvenience this may have caused.

If you receive a suspicious email from the department, do not open it.  Please contact ASK.DBO@dbo.ca.gov. 

For more information on past alerts please go to the DBO Consumer Alert page.

The State Treasurer’s Office (STO) has issued a reminder to commercial banks and credit unions that they can apply to receive funds through the Time Deposit Program administered by the STO.  As of June 30, the program had $4.9 billion in deposits with 69 participating financial institutions.

Among its benefits, the program:

• Enables financial institutions that might not otherwise compete for state moneys through other short-term investment options to receive substantial deposits.
• Provides a stable source of funding at attractive rates.
• Is user-friendly, with easy administrative and professional interactions.
• Stimulates growth in small businesses, home mortgages, auto loans, personal loans and other lending throughout the state.

For more information, contact Evelyn Gorman or Sean Collier in the STO’s Investment Division at 916-653-3147 or stotimedeposits@treasurer.ca.gov.