Cease and Desist?
Wow. We are now less than a month away from the FACT Act deadeline and there was some more disturbing news coming out about banks being able to meet the dealine. A recent study from Tower Group estimates that only 1/3rd of institutions will meet the November 1st deadline. This summer, Bankinfosecurity.com estimated that half of the banks would meet the deadline – and now that has dropped even further.
The article goes on to say that banks not meeting compliance will be faced with cease and desist orders and civil penalties! Holy smokes. In the midst of all this mayhem in the financial services sector – now this.
As we reach out to prospects – we are hearing similar things – especially amongst the community banks. Even today, we are hearing that banks are just now beginning to look at the new FACT Act regulations. We have signed up more than 300 institutions on the last few months with about 100 last month – indicating the sudden panic on this issue.
It is becoming clear that there are going to be a ton of banks faced with some daunting challenges as they face their next examination.