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Iran’s CBDC Cleared For Soft Launch In July
The Central Bank of the Islamic Republic of Iran (CBI) has announced that the digital rial, a retail central bank digital currency (CBDC), will be launched into circulation on a limited basis in July.
Initially, the digital rial will launch exclusively on Kish Island, a holiday resort and free trade zone in the Persian Gulf, which is home to about 140,000 residents.
The digital rial will be available to both Iranian nationals and foreign tourists, and can be used for person-to-merchant (P2M) payments using a QR code.
The CBI said the launch of the digital rial follows several periods of experimentation supported by the country’s commercial banking sector, beginning in 2021.
It also said the launch of the digital rial will lay the groundwork for a modern digital economy in Iran and will serve the payments needs of merchants and consumers.
Evolve Bancorp Penalised In US For Fintech Risk Management Failures
The US Federal Reserve Board has issued an enforcement action against Evolve Bancorp for deficiencies in its anti-money laundering (AML), risk management and consumer compliance programmes.
Evolve partners with fintechs who provide access to banking products and services to Evolve’s end customers.
Examinations conducted in 2023 found that Evolve engaged in “unsafe and unsound” banking practices by failing to have in place an effective risk management framework for those partnerships.
In addition, Evolve did not maintain an effective risk management programme or controls sufficient to comply with AML and laws protecting consumers.
The Federal Reserve Board is requiring the bank to improve its policies and programmes in those areas, in addition to requiring other remedial improvements.
Evolve must implement appropriate oversight and monitoring of its fintech partnerships and enhance its record-keeping for compliance purposes.
