2025 Regulatory Summit

Takeaways

• Beneficiary banks may rely solely on account numbers. • “Actual knowledge” = subjective, not constructive. • More knowledge = more risk: red flags can still create liability. • Signals courts will protect efficiency of automated payment systems. • But plaintiffs still testing negligence, fraud, and contract theories. • Banks must remain vigilant against BEC scams, elder abuse, “pig butchering.” • Not a settled area — litigation risk remains.

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DIDMCA Opt-Out

• Section 521 of DIDMCA applies to insured state banks and tracks Section 85 of the National Bank Act. • Section 525 allows states to enact laws opting out of Section 521’s preemptive effect with respect to loans “made in” the enacting state.

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