Conference of State Bank Supervisors (CSBS) officials said 13 nationwide payments firms have initiated or are presently undergoing single comprehensive exams in conjunction with the One Company, One Exam program.
The effort is in accordance with state regulators’ recently released grouping of eight priorities as a means of advancing Networked Supervision – noting priorities include nationwide adoption of the multistate licensing agreement for Money Service Businesses (MSBs), building and launching a modernized Nationwide Mortgage Licensing System (NMLS) and coordinated cyber-risk examinations for all regulated nonbank companies.
“Our goal of completing single, coordinated exams for each nationally operating money service business in 2021 is an important part of our evolution from the siloed system of the past to a nationwide federated system of licensing and supervision,” CSBS President and CEO John W. Ryan said.
Each exam is led by one state overseeing a multistate group of examiners with a wide range of expertise, including cybersecurity and anti-money laundering. One Company, One Exam was initially developed as part of the states’ Vision 2020 initiative and became a program for MSBs in late 2020 after a successful pilot with several companies.
“We are pleased that the CSBS has been consistent in seeking industry insights and partnership to understand opportunities for streamlined supervision,” Andrea Donkor, vice president, Head of Global Regulatory Relations at PayPal, said. “CSBS’s One Company, One Exam initiative is a transformative moment that maintains the rigor of regulatory oversight while reducing undue regulatory impact on the industry.”