Newsletter

Message from Commissioner Lise Kruse In years past, we issued individual newsletters to the industries we oversee. We are changing our approach, as you may find it interesting to know what is going on in the department overall. Given the exponential growth in the non-depository division, we will inform you of important developments in that division as well. Since bank customers and credit union members regularly utilize nonbank services, it has an overall impact on the financial industry in North Dakota. To ensure an even playing field and heighten our oversight, we added Jan Murtha to our team last year to oversee the non-depository division. Jan was our attorney years ago, so she was already familiar with what we do. She has been a great addition to our team. To do a better job communicating with our industries and enhance our public education efforts, we have hired a communications director, Jennifer Skjod. She has extensive experience and will ensure that we keep you informed of areas of interest. Since we are seeing such an increase in fraud, she will also help us reach the public to educate and protect our citizens.  You may have heard me say that in addition to the conversations I have with you, I also pay attention to the community banking sentiment index results, to inform me of what is most important to you. One of the greatest challenges we all face is cybersecurity. We recognize that this is an area we all must take seriously. Therefore, we have added an IT specialist to our examination team, who you will likely see on your next exam. Keith Steinberg has decades of experience in IT, both in and outside the financial industry. He will conduct quarterly webinars that your IT team will hopefully find helpful. Those webinars will not just focus on regulatory mandates but will help you learn about best practices so we can protect our financial system as much as possible. The first webinar will be on February 18, so make sure you inform your staff so they can attend. The link to join that webinar is posted below. Finally, I am so glad to be serving as your commissioner. Our financial industry in North Dakota is strong, and you serve your communities so well. It is a privilege to be part of it.

New CSBS Resources Available to Financial Institutions

The Conference of State Banking Supervisors recently published new fact sheets addressing Third-Party Risk Management and Incident Response Programs as part of their Cyber Hygiene Awareness campaign. 

These documents are not intended to introduce new guidance but are instead intended to spotlight and amplify best practices from existing regulatory guidance, CISA, the FFIEC IT Handbook booklets, and other authoritative sources that encourage comprehensive and consistent application of these cyber hygiene principles and practices, as well as increased oversight by senior management and the Board.

The fact sheets provide a general overview of important cyber hygiene considerations to enable appropriate and consistent application of each practice. References are provided throughout each fact sheet to guide the reader to relevant source materials for each practice.

We strongly encourage you to share these documents with the appropriate staff within your institution.

Securing Network Assets & Vulnerabilities:
A Quick Guide for Banks and Credit Unions

Banks and credit unions must maintain strong cybersecurity practices to protect customer data and meet regulatory requirements.

Two critical areas are:

1. Network Asset Visibility: Know every device, application, and system connected to your network.
2. Vulnerability Management: Identify and remediate weaknesses before attackers exploit them.

Why It Matters

• Unpatched systems and misconfigured devices are top attack vectors.
• Cyber incidents may lead to financial loss and reputational damage.

Compliance Checklist

✔ Maintain a current inventory of all assets attached to your network.

✔ Conduct regular vulnerability scans and document findings.

✔ Verify that 100% of your assets are being scanned and that they are included in the vulnerability scan report.

✔ Implement a patch management program with prioritization for critical updates.

Bottom Line: Visibility and proactive vulnerability management are essential to reduce cybersecurity risk and protect sensitive data. Start with the Compliance Checklist to strengthen your security posture.

Questions? Contact Keith Steinberg, NDDFI IT Examiner

North Dakota Century Code Ch. 47-30.2 requires businesses to reunite abandoned property with its rightful owner and prevent misuse by holders. What Does This Mean for You? Review your records annually for unclaimed funds, securities, or property. Report and remit unclaimed property to the State after the required abandonment period (varies by property type). All businesses and nonprofits must comply—no exceptions. Need Help? Visit https://unclaimedproperty.nd.gov/ for the holder reporting manual. Call the Unclaimed Property Division at (701) 328-2800, option 2. Could You Have Unclaimed Property? Search for your business at https://unclaimedproperty.nd.gov/.

Order of Denial of Application for Organization Certificate – Trust Company of the Dakotas

The Commissioner of the North Dakota Department of Financial Institutions, acting on behalf of the State Banking Board, has issued an Order of Denial regarding the Application for an Organization Certificate for Trust Company of the Dakotas, Minot, North Dakota.

Under North Dakota Century Code Chapter 6-05, the formation of a trust company requires Board approval based on factors including public need, business competency, and the character and integrity of proposed incorporators.

After a hearing and review of testimony, exhibits, and public comments, the Board concluded that the Applicants failed to meet the requirements for a trust charter.

Accordingly, the Application for Organization Certificate for Trust Company of the Dakotas is denied. The proposed incorporators are not authorized to transact business as a trust company in the State of North Dakota.

More information is contained in the Findings of Fact, Conclusions of Law, and Order of Denial of Application.

Community Bank Sentiment Index (CBSI)

The 4^th quarter CSBS CBSI is near its all time high, signaling a continued positive outlook by community bankers. 

Expectations regarding regulatory burden has seen the most improvement in 2025 after 15 consecutive quarters below 30 where the expectation was a heavier regulatory burden. 

More details on the CBSI results are found on the CBSI website.

State-Chartered Bank Activity

State-Chartered Credit Union Activity

Monthly Bulletin

The Department issues a monthly bulletin which details applications received and their status, including any action by the State Banking Board or the State Credit Union Board. The monthly bulletin is an effort to keep North Dakota citizens and other interested parties apprised of actions and activities conducted by our state-chartered financial institutions. They are located on our website at https://www.nd.gov/dfi/news-and-publications/department-bulletins.

Virtual Currency Kiosks – What Licensee’s should know.

Virtual currency kiosk operators are regulated as money transmitters under North Dakota law, specifically North Dakota Century Code (NDCC) Ch. 13-09.1. A virtual currency kiosk operator includes entities whose services facilitate the exchange of virtual currency for money, bank credit, or other virtual currency when the transaction process relies on use of the kiosk. North Dakota passed new legislation in 2025 that created additional operating and fraud prevention requirements for virtual currency kiosk operators.

One new provision resulting from the passage of House Bill 1447 requires licensees to provide the location of all the kiosks using your software located in the state of ND on a quarterly basis. The Department requests that licensees provide kiosk location information through the authorized delegate function of the NMLS system.

The Department anticipates posting Frequently Asked Questions relating to virtual currency kiosk regulation for industry and consumers on its website in February 2026. 

Upcoming Events

Kruse and Mihorn to Speak at NDBA 2026 Management Conference

Commissioner Kruse along with CSBS President/CEO Brandon Milhorn will participate in a fireside chat at the NDBA 2026 Management Conference Feb. 13-14. 

2026 NMLS Annual Conference Feb. 17-20

Department staff will be at the NMLS conference Feb. 17-20, and will participate in the “Meet Your Regulator” event.

Spring Regular State Banking Board Meeting

The State Banking Board is scheduled to meet Wednesday, March 4, at 9:30 a.m. CT at the NDDFI office in Room 115 located at 1200 Memorial Hwy in Bismarck. See details and subscribe to alerts on the NDDFI website.

Spring Regular State Credit Union Board Meeting

The State Credit Union Board is scheduled to meet Thursday, March 19, at 1 p.m. CT at the NDDFI office in Room 115 located at 1200 Memorial Hwy in Bismarck. See details and subscribe to alerts on the NDDFI website.

Joint State Banking and Credit Union Board Meeting

A joint State Banking Board and State Credit Union Board meeting is scheduled for Wednesday, June 10, at 9 a.m. CT at the NDDFI office in Room 115 located at 1200 Memorial Hwy in Bismarck. See details and subscribe to alerts on the NDDFI website.

Times referenced in Team ND News are Central Time Zone. To submit general feedback, please email dfi@nd.gov.