Louisiana Office of Financial Institutions Commissioner John Ducrest was named as the new Chairman of the Board of Managers of the State Regulatory Registry. The Office of Financial Institutions (OFI) is responsible for the supervision of various entities which provide financial services to the citizens of the State of Louisiana.
Redesigning the Nationwide Multistate Licensing System
The appointment was announced by the Conference of State Bank Supervisors (CSBS) Chairman and Commissioner of Wyoming Division of Banking Albert Forkner saying Louisiana native Ducrest will be tasked to lead the redesigning of the Nationwide Multistate Licensing System (NMLS) which is a key component of the CSBS Vision 2020.
“Commissioner Ducrest will lead our efforts to redesign NMLS, with the goal of transforming the licensing process and enabling the streamlining of multi-state supervision. Redesigning NMLS is a key component of CSBS Vision 2020 for fintech and non-bank regulation”.
State Regulatory Registry is a subsidiary of the Conference of State Bank Supervisors (CSBS) which manages the business operations of the Nationwide Multistate Licensing System (NMLS).
NMLS is the common platform used by the state regulators to oversee non-banks, such as those in mortgages, money transmission, debt collection and consumer finance which include financial technology companies.
Ducrest has been with Louisiana’s Office of Financial Institution for more than 30 years - enough experience to be entrusted with a new role in managing the NMLS.
How will this affect nationwide Blockchain transactions?
With this new role, the Louisiana regulator will be responsible for ensuring the success of CSBS Vision 2020 for fintech and non-bank regulations whose goal is:
“Achieving this vision should result in a regulatory system that makes supervision more efficient and recognizes standards across state lines – actions that will better support start-ups and enable national scale while protecting consumers and the financial system”.
As part of its key roles, the CSBS Vision 2020 is also envisions to make it easier for banks to provide services to non-banks, which could potentially affect the regulations involving Blockchain transactions.
CSBS is stepping up efforts to address de-risking – where banks are cautious about doing business with non-banks, due to regulatory uncertainty – by increasing industry awareness that strong regulatory regimes exist for compliance with laws for money laundering, the Bank Secrecy Act, and cybersecurity.
CSBS Vision 2020 is a series of initiatives designed to modernize state regulation of non-banks, including financial technology firms.
Former CSBS Chairman Charles Cooper comments:
“Through Vision 2020, state regulators will transform the licensing process, harmonize supervision, engage fintech companies, assist state banking departments, make it easier for banks to provide services to non-banks, and make supervision more efficient for third parties”.