Kathleen A. Scott

Senior Counsel
Norton Rose Fulbright US LLP

New York
United States
T:+1 212 318 3084
New York
United States
T:+1 212 318 3084
Kathleen A. Scott

Kathleen A. Scott

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Biography

Kathleen A. Scott is a senior counsel in the New York office representing some of the world's largest international banks and other financial institutions concentrating on a broad range of financial services regulatory, anti-money laundering and privacy matters.

She represents financial institution clients with respect to the bank regulatory aspects of mergers and acquisitions, establishment of new banking organizations and nonbanking affiliates, and other transactions.

Kathleen also advises U.S. and non-U.S. banks, bank holding companies and other financial institutions on a broad range of federal and state regulatory issues affecting all their operations and interacts routinely with federal and state banking regulators. She has expertise regarding U.S. federal and state banking laws and regulations regarding banks as well as nonbank financial companies that might require licensing at the state level.

Kathleen also counsels financial institutions facing enforcement or other supervisory actions or investigations by state and federal regulators on their compliance with federal consumer, privacy and anti-money laundering legislation and regulations. More specifically, she handles compliance with the Gramm-Leach-Bliley Act for banks and other financial institutions and related financial privacy and information security matters. She also uses her regulatory expertise to advise financial institutions on a broad range of anti-money laundering compliance and enforcement issues.

She also is a member of the firm's global financial technology practice, advising on the U.S. financial services regulatory aspects of cryptocurrencies, the blockchain and smart contracts and is a founding member of the firm's new global payments practice group.

Kathleen began her career as an attorney for the United States Department of Treasury and also served as an assistant counsel for the New York State Banking Department before going into private practice at two other major law firms in New York before joining Norton Rose Fulbright.

Since 2005, she has written a bi-monthly column on International Banking for the New York Law Journal. In addition, she is an editor of, and routinely contributes to, the firm's Financial Services: Regulation Tomorrow blog, which provides insight and commentary on the global financial regulatory environment.


Professional experience

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JD, American University, Washington College of Law
BA, cum laude, Villanova University

  • District of Columbia Bar
  • New York State Bar


Financial Services Regulatory

  • Review and advise on supply chain financing structures and relevant US regulatory consequences
  • Key quality control person for global regulatory compliance projects for two major U.S. and one non-U.S. banking and financial services corporations
  • Provide monthly U.S. regulatory updates to international banking organization
  • Handled U.S. regulatory matters in cross-border acquisition of a U.S. nonbank lender by a non-U.S. bank
  • Advised several non-U.S. banks on the Dodd-Frank Act's Volcker Rule implementation for non-U.S. banks
  • Advised major non-U.S. banks on permissible activities in the United States transacted from outside the United States
  • Obtained federal and state regulatory approvals for numerous U.S. and non-U.S. clients regarding establishment of new banking institutions, bank holding company and financial holding company status, mergers, acquisitions, and new products, including obtaining financial holding company status for the first majority government-owned non-U.S. bank to elect that status
  • Developed and implemented strategies for the U.S. expansion of a major non-U.S. bank, including obtaining all state and federal regulatory approvals
  • Obtained several money transmitter licenses for a U.S. subsidiary of a non-U.S. bank
  • Drafted federal and state legislation and regulations on a variety of regulatory issues


Corporate work

  • Developed and implemented strategies regarding, and obtained regulatory approvals for, internal reorganizations for certain U.S. banking organizations, including preparation of all corporate documents and regulatory applications
  • Drafting corporate governance documents relating to the establishment of new banks and non-bank financial institutions, their transactions, and their ongoing corporate matters
  • Reviewing and revising bank policies for conformance with applicable laws and regulations
  • Drafting financial institution inter-company agreements and advising on financial institution servicing agreements with third party vendors


Data Privacy

  • Provided information on U.S. anti-money laundering and U.S. financial privacy laws for a major European business conglomerate and a major non-U.S. financial institution
  • Assisted with an ancillary privacy issue in a securities investigation for a multinational financial institution; review of privacy policies
  • Advised a consultant to a regulatory agency on statutory confidentiality provisions for banks and drafted policies and conducted training for the consultant's staff


Anti-money laundering

  • Negotiated major enforcement actions from both the private sector and public sector for U.S. banks and U.S. offices of non-U.S. banks, and assisted clients with enforcement action compliance
  • Drafted significant number of federal regulations, particularly with respect to anti-money laundering laws


Miscellaneous

  • Handled U.S. bank regulatory aspects of international initial coin offering (ICO)
  • Advise clients on applicability of New York virtual currency and cybersecurity regulations to their operations
  • Drafted significant amount of state legislation and regulations on financial matters, including the New York Banking Laws on the licensing and supervision of the U.S. offices of non-U.S. banks and on liquidations of New York State-chartered banks and state-licensed offices of non-U.S. banks
  • Extensive experience in bank liquidation matters, having assisted in the liquidation of the New York office of a major international bank and the liquidation of an uninsured "banker's bank" for the thrift industry, as day-to-day legal liaison between the New York State Banking Department and those conducting the liquidation, and supervisor of outside counsel and other consultants
  • Chambers USA, Nationwide: Financial Services Regulation: Banking (Compliance), Chambers & Partners, 2014-2017
  • The Best Lawyers in America, Banking and finance law, Best Lawyers, 2020
  • New York Metro Super Lawyers, banking, Thomson Reuters, 2007, 2009 - 2011, 2014 - 2018
  • Who's Who Legal, Banking: Finance, Legal Business Research Ltd., 2018
  • Chambers Global, Latin America-wide: banking & finance, Chambers & Partners, 2012
  • Chambers Latin America, banking & finance, Chambers & Partners, 2012

A prolific writer, Kathleen is an editor of, and regularly contributes to, the Financial Services: Regulation Tomorrow blog, which provides insight and commentary on the global financial regulatory environment. Since 2005, she has written a bi-monthly column for the The New York Law Journal on International Banking.

Other recent publications include:

  • Co-author, "Open banking: international themes," Thomson Reuters Accelus, August 1, 2019
  • "Federal Reserve Board issues proposal to clarify and simplify 'control'," Norton Rose Fulbright Banking Reform Updater, June 11, 2019
  • "Mandatory stay provisions in qualified financial contracts," Westlaw Journal Bank & Lender Liability, April 15, 2019
  • Co-author, "Crypto assets and asset management: international regulatory developments," Thomas Reuters, March 4, 2019
  • "Broker-dealers can continue to rely on investment advisers for customer KYC requirements," Norton Rose Fulbright Global Asset Management Quarterly, February 2019
  • Banking agencies and FinCEN encourage innovative efforts by banks to combat money laundering and terrorist financing," Westlaw Journal Bank & Lender Liability, January 22, 2019 
  • Co-author, "EU v US intermediate financial holding company regimes," Norton Rose Fulbright Banking Reform Updater, January 5, 2017
  • Co-author, "Putting management on the line: New York anti-money laundering and sanctions regulations look to senior management for written compliance findings," Norton Rose Fulbright-Legal Update, August 2016
  • Co-author with Kayla Field,  "Adapting global operations to the US anti-money laundering regulatory environment," Business ethics and anti-corruption: Asia Pacific insights, September 2015.
  • Author, "Know your customer' rules and credit providers," Norton Rose Fulbright - Legal Update, June 2015
  • Co-author, "CFPB proposes amendments for some GLB privacy notices," Norton Rose Fulbright - Legal update, May 15, 2014
  • Co-author,  "Volcker Rule deadline for CLOs extended: FRB to give CLO holders more time to comply," Norton Rose Fulbright - Legal update, April 21, 2014
  • Author, "Non-U.S. Banks Operating in the United States: The Federal Reserve as Gatekeeper,"  Journal of Taxation and Regulation of Financial Institutions, March/April 2014
  • Co-author, "Implications of the Volcker Rule for Foreign Banking Entities," Norton Rose Fulbright - Legal update, March 31, 2014
  • Author, "Enhanced Prudential Standards for Non-U.S. Banks," The Oklahoma City University School of Law's Consumer Finance Law Quarterly Report, Vol. 67: Nos. 3&4, 2013
  • Author, "State Regulation of Foreign Banks," chapter in Regulation of Foreign Banks & Affiliates in the United States, 9th edition, Thomson Reuters Westlaw, 2016 (co-author with Elizabeth Tibbals Davy in some previous editions)
  • Author, "Banks and Capital Standards  - Retooling the Engine to Keep the Financial System Running More Efficiently," Journal of Taxation and Regulation of Financial Institutions, March/April 2012 


New York Law Journal Recent Columns:

Kathleen was an adjunct professor at the New York Law School and co-taught a seminar on The Bank Holding Company Act. She is also a frequent  presenter at industry conferences, client seminars and Norton Rose Fulbright events, and is a CLE presenter for continuing legal education providers on bank and other financial services regulatory issues.

Her recent engagements include:

  • Co-Presenter, "Introduction to Cryptocurrency and Blockchain," ProLaw CLE, February 22, 2019
  • Presenter, "An Introduction to the Complex U.S. Bank Regulatory Framework," Lawline, November 9, 2018
  • Co-Presenter, "An Introduction to Cryptocurrency and Blockchain, and the Legal Issues Surrounding Them," Lawline, November 8, 2018
  • Panelist, "Corporate Governance & Controls: Minimizing Risks," New York City Bar Association, October 19, 2018
  • Presenter, "Practical Compliance: AML Requirements for Financial Institutions," Clear Law Institute, July 30, 2018
  • Co-Presenter, "Bitcoin, Blockchain and Smart Contracts," Office of Nassau County Attorney, February 28, 2018
  • Co-Presenter, "Cryptocurrency, Blockchain and Smart Contracts: An Introduction," National Academy of Continuing Education, February 22, 2018
  • Moderator, "Whistleblowers, Reporting Up and the Professional Rules of Ethics," New York State Bar Association Business Law Section Annual Meeting, New York, New York, January 24, 2018
  • Presenter, "AML Compliance Basics for Lawyers," Lawline, November 14, 2017
  • Panel Chair, "Changes in Banking Regulation in the New Administration," New York State Bar Association Business Law Section Fall Meeting, New York, New York, October 13, 2017
  • Panelist, "FinTech developments – initial coin offerings," Norton Rose Fulbright's Financial services 40-minute briefings, October 5, 2017
  • Co-Presenter, "Blockchain and Smart Contracts: An Introduction," Marsh USA web seminar, July 27, 2017
  • Co-Presenter, "Bitcoin and Beyond: An Introduction," MyLawCLE web seminar, June 22, 2017
  • Panelist, "Government by Executive Order and Presidential Memoranda," Norton Rose Fulbright's Financial services 40-minute briefings, March 2, 2017
  • Panelist, "Fintech: Smart contracts and regulating for innovation," Norton Rose Fulbright's Financial services 40-minute briefings, January 5, 2017
  • Presenter, "Introduction to Banking -2016," Lawline, November 16, 2016
  • Presenter, " Non-U.S. bank operations in the United States," Lawline,  November 16, 2016
  • Panelist, "Compliance 2016: Hot Button Regulatory Issues and Enforcement Actions," New York Bankers Association 2016 Financial Services Forum, October 18, 2016
  • Panelist, "Virtual Currency & Cryptocurrency Issues," New York State Bar Association Business Law Section Fall Meeting, Tarrytown, New York, October 3, 2015
  • Speaker, U.S. bank regulatory matters, Annual Australian Financial Institution Symposium, Sydney, May 4-6, 2015
  • New York State Bar Association - Member, House of Delegates Sections Caucus (Secretary 2018-2019; Executive Committee member 2019-2020)
  • New York State Bar Association - Member, House of Delegates, 2018-present
  • New York State Bar Association - Member, Business Law Section (chair 2017-2018)
  • New York State Bar Association - Member Banking Law Committee (chair 2013-2016)
  • New York City Bar Association - Member Banking Law Committee (chair 2006 -2009)
  • New York Appleseed - Member Board of Directors (chair 2016-2019)
  • ARIVA - Member Board of Directors (chair 2013 – 2017; Board Governance Committee chair 2017-present)