5 Issues to Watch in Banking & Finance in 2014

No, we don’t have a crystal ball. We have better: the insight of experts writing on JD Supra about regulatory and operational issues facing banks in 2014. Here are five to watch:

1. Virtual Currency

Bitcoin and other virtual currencies may represent significant opportunities for investors and merchants, but right now, the risks seem to outweigh the rewards for financial institutions. Some key considerations: compliance with the Bank Secrecy Act, anti-money laundering rules, and tax laws. Read:

2. The Volcker Rule

It took regulators nearly three years and more than 900 pages to articulate a rule that will prohibit banks from engaging in the risky behaviors that are believed to have made the institutions “too big to fail” when the 2008 financial crisis hit. Compliance with the Volcker Rule, which begins to go into effect in mid-2014, will require banks to change the way they do business – and with whom. Read:


It’s hard to overestimate the impact of the US Foreign Account Tax Compliance Act on the global banking industry. The rules could generate as much as $850 million in new tax revenues for the US, but there’s no telling how much compliance is going to cost foreign banks. And with more and more countries signing Intergovernmental Agreements with the US to implement FATCA, it’s probably just a matter of time before banks in every major jurisdiction are required to comply with the law. Read:

4. Cybersecurity and Data Protection

Earlier this year, a group of cyber criminals stole $45 million from ATMs around the world in just ten hours. So it’s not surprising that financial services is one of the “critical infrastructure” industries included in the National Institute of Standards and Technology’s Cybersecurity Framework.  Read:

5. Social Media

Like other industries, social media offers banks marketing, advertising, and networking opportunities. But regulators say social media activity of financial institutions exposes those entities to three significant risks: legal compliance risks, reputational risks, and operational risks. Read:

Go deeper on these topics at JD Supra Business Advisor>>