Fed Warns Goldman Sachs' Fintech Unit on Risk and Compliance Oversight
Goldman Sachs' transaction banking business division has halted onboarding riskier fintech clients following a warning from the U.S. Federal Reserve regarding risk and compliance issues. The Fed raised concerns about insufficient due diligence and monitoring processes by the division when accepting high-risk non-bank clients. The division provides banking infrastructure to fintech clients, including payment start-ups Stripe and Wise. Goldman Sachs and the division did not immediately respond to requests for comment.