InnReg Steps In After CCO Departure to Navigate Money Transmitter Deadlines
Digital Assets/Crypto
Global
InnReg supported a global fintech company that enables businesses to integrate crypto-trading capabilities through its APIs, allowing users to trade digital assets alongside securities. Through the company’s trading and broker APIs, clients can build, automate, and integrate trading and investment solutions tailored to their needs.
Operating in the competitive sector of digital assets, the company’s platform simplifies access to both traditional and emerging financial products. As the company expanded globally, it encountered the complexities of navigating different regulatory environments, particularly in the United States. Compliance with state-specific money transmitter licensing regulations became crucial for maintaining operations and uninterrupted service.
Objective
InnReg took charge of several critical compliance priorities and collaborated with the interim Chief Compliance Officer (CCO) to meet the company’s compliance needs and regulatory requirements. The team provided an actionable plan to address findings from regulatory exams and internal compliance issues.
Background
The client turned to InnReg for our deep expertise in managing compliance for fintech companies in regulated markets. InnReg’s specialists updated compliance plans and addressed critical regulatory requirements identified in a regulatory examination.
As the project progressed, the company’s management team worked actively with InnReg to navigate complex regulatory challenges and ongoing regulatory requirements.
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Challenges
At the outset of InnReg's engagement with the company, several pivotal challenges became apparent:
Imminent Money Transmitter Deadlines: There was an urgent need to maintain ongoing compliance across multiple jurisdictions.
Regulatory Compliance Issues: The potential for incurring penalties due to regulatory issues posed a significant risk.
Ongoing Anti-Money Laundering (AML) Issues: Timely responses to regulatory inquiries were crucial to mitigate the risk of future penalties.
InnReg's Solution
InnReg took charge of managing the company’s compliance transition, providing essential leadership during this critical period. Our team of compliance specialists assumed key responsibilities previously held by the CCO, offering expert guidance to help the client address regulatory requirements and meet its deadlines.
InnReg’s work focused on several critical priorities to stabilize the company’s compliance operations. These included:
Regulatory Exam Findings: Developing and managing an actionable plan to address the findings from a multi-state regulatory exam report.
AML Compliance: Addressing ongoing AML issues and responding to regulatory inquiries.
Surety Bond and Licensing: Managing requirements and deadlines associated with surety bonds and money transmitter licenses to maintain compliance across all jurisdictions.
Business Continuity Plan: Revising and updating the Business Continuity Plan to reflect changes following the departure of the CCO.
Client Results
The partnership with InnReg allowed the company to successfully navigate a critical compliance transition without missing any regulatory deadlines. The company received exam disposition letters from state regulators deeming the remediation measures implemented by InnReg sufficient to address the deficiencies encountered during the exam.
With InnReg’s personalized guidance and ongoing support, the company continued to expand its global platform while staying ahead of evolving blockchain and cryptocurrency regulations.
