FBI Warns of New Cybercrime Threat (June 3, 2015)
Cybercriminals are using a new form of malware to steal shoppers’ personal financial data, according to an FBI alert issued to retailers last week.
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IRS Breach Exposes Data of 100,000 Taxpayers (May 27, 2015)
Cybercriminals accessed the personal information of about 100,000 U.S. taxpayers in an attack on the IRS’s systems, the agency confirmed this week.
Innovators’ Spotlight: Mozido
If you’re tracking the hottest topics in payments, watch Mozido. Over the past several months, the Austin, Texas-based mobile wallet provider has been investing, hiring and expanding in sync with the most important industry trends.
CFPB: Final Prepaid Rule Coming in January ‘16 (May 26, 2015)
The CFPB’s final rule for prepaid financial products will come in January 2016, according to the agency’s latest rulemaking timetable.
CFPB Updates Consumer Complaint Manual (May 26, 2015)
The CFPB this month updated its Company Portal Manual, which explains in detail the process when consumer complaints are submitted to the bureau as well as the procedures companies must follow if they wish to respond to a complaint.
MasterCard Issuers Reject Proposed Deal in Target Breach Case (May 26, 2015)
A settlement between MasterCard and Target stemming from the retail giant’s 2013 data breach has been scrapped after failing to earn approval by enough MasterCard-issuing banks.
Things ain’t what they used to be
According to Cisco there are 15.5 billion devices connected to the internet, ranging from routers to telemetry devices, power grid controllers, smartphones and perhaps the odd toaster. Other than in retail situations this so-called Internet of Things does not immediately seem to have much to do with the financial services industry. John Bates thinks otherwise, and sets out why in his recent book Thingalytics.
Viewpoint: One-Size-Fits-All Regulation of Prepaid Accounts Does More Harm than Good
The NBPCA supports the CFPB goal of protecting consumers, but the proposed rule doesn’t differentiate between prepaid products that serve different needs.
Denmark Seeks to Eliminate Most Cash Transactions (May 13, 2015)
The Danish government wants to eliminate the obligation of accepting cash for certain retailers—expediting a move toward a cashless economy some government officials believe will reduce costs and increase productivity for affected businesses.
EU Lawmakers Reach Informal PSD2 Agreement (May 7, 2015)
European lawmakers, following years of discussion, believe improved competition, more innovation and enhanced consumer protections in cross-border payments will be the result of an informal agreement on a revised Payment Services Directive (PSD2) reached this week.
FinCEN: Virtual Currency Exchangers Must Comply with BSA, AML Rules (May 7, 2015)
Ripple Labs Inc. acted as a money services business and sold its virtual currency without registering with FinCEN.
Bringing the channels together
Can the right combination of self-service device management, cash management and end-to-end transaction monitoring enable banks to embrace enterprise-wide performance awareness, and take a holistic approach to managing their multi-channel banking environments?
Viewpoint: UDAAP Priorities and the CFPB’s Project Catalyst Initiative
Notes from a business law meeting with speakers from the CFPB, FTC and New York Department of Financial Services.
Beating the (IT) budget blues
By following simple principles and incorporating solid processes and tools the IT budgeting and forecasting process can be a source of value to both the IT department and the businesses it serves
House Bill Likely D.O.A. Because of Proposed Funding Cap on CFPB (April 23, 2015)
Spoiler alert: A bill approved yesterday by the U.S. House of Representatives basically will be dead on arrival as President Barack Obama has vowed to veto any legislation that tries to touch the purse strings of the CFPB.
Real-time payments: the next frontier
Customer driven innovation is powering change in the payments industry. Real-time Payment infrastructures (RTP) – whether they are called Faster Payments, Immediate Payments or same-day clearing – are now a reality, with many countries having implemented RTP functionality, and others actively considering the imminent roll-out of RTP projects in their domestic market.
Cloud opens up democratisation of retail investor services
Cloud services are opening up possibilities for the retail investor to create individual customised funds in a way that was previously the preserve of the super-wealthy. Coupled with regulation in the UK such as RDR, the effect has been to make new business models possible, according to Michael Newell, chief executive at InvestYourWay.
Viewpoint: Canada’s Regulation of Mobile Payments: Merchant Protection at the Cost of Innovation?
Some of the most significant changes to Canada’s Code of Conduct for the Credit and Debit Card Industry affect the rights of merchants regarding mobile and contactless payments. Will the updated Code have the unintended consequence of disincenting investment in and adoption of innovative payment technologies in Canada?
Out with the old in New Orleans?
Innovation in a mobile real-time world will be to the fore in the discussions as the US payments industry gathers at Nacha Payments 2015 to consider the opportunities and challenges against a background of rapid technological and regulatory change. What can those embarking on project learn from those who have already been there?
Senate’s Tax Refund Fraud Bill Takes Aim at Prepaid (April 16, 2015)
Several U.S. senators used income tax season to promote new legislation that takes aim at program providers that enable consumers to receive their tax refunds on prepaid cards.
Canada’s Code of Conduct Expands to Include Mobile (April 15, 2015)
Canada’s Financial Consumer Agency this week has released amendments to Canada’s code of conduct for credit and debit card transactions that extend to mobile payments.
N.Y. AG’s Problematic Payroll Card Act Gets Sponsors from Both Sides of Aisle (April 8, 2015)
Both political parties again are backing problematic payroll card legislation from New York Attorney General Eric T. Schneiderman that could squeeze margins and force some providers to pull programs from the state.
Petition: Exclude Bitcoin Startups, Supporting Companies from BitLicense Regs (April 2, 2015)
A coalition of bitcoin entrepreneurs and advocates are backing a petition that would exclude companies supporting the bitcoin infrastructure, as well as smaller startups, from the scope of New York’s BitLicense proposed regulations.
Sen. Menendez Indicted on Corruption Charges (April 2, 2015)
After several weeks of speculation, Sen. Robert Menendez (D-N.J.) was indicted yesterday on federal corruption charges over allegations he accepted bribes from a donor in exchange for political favors.
2015 Is U.K.’s ‘Year of Prepaid’ Says Group (March 25, 2015)
An industry group is calling 2015 the “year of the prepaid economy” in the U.K., as consumers there increasingly adopt prepaid cards for everyday spending, online shopping and transit.
Tanzania Works on Regulations to Combat E-Payments Fraud (March 25, 2015)
Tanzania is taking steps to tighten up electronic payments against fraud, with the government working to establish best practices, regulations and supervision of efficient, effective payment, clearing and settlement systems, according to Finance Minister Saada Mkuya Salum.
CFPB’s Consumer Complaint Database Will Enable Consumers to Make Complaints Public (March 19, 2015)
The CFPB is finalizing its consumer narrative policy and, 90 days after the policy is published in the Federal Register, consumers who have opted in will be able to make their complaints about financial products and services in the bureau’s Consumer Complaint Database public.
Viewpoint: Let’s Reduce Complexity and Improve Disclosure
The Colorado congressman suggests having too many disclosures is a disservice to consumers.
Supreme Court: Regulators Can Change Rule Interpretations without Advance Notice, Comment Period (March 10, 2015)
The Supreme Court is backing the authority of regulators to reinterpret their own rules without seeking industry input.
CFPB Releases Arbitration Study; Considers Next Steps for Regulation (March 10, 2015)
The CFPB is considering next steps in weighing new regulations for arbitration agreements widely used in financial services businesses to settle consumer disputes, following today’s release of the 728-page “Arbitration Study: Report to Congress 2015.”
EU Passes Interchange Caps; Prepaid Businesses Must Look Elsewhere for Income (March 10, 2015)
The long road to interchange reform in the European Union has come to an end of sorts with passage of interchange caps today in the European Parliament.
Taking stock in fixed income
Fixed income markets have historically been a bastion of high-touch trading, with manual processes, large tickets and little standardisation. But as recent years have seen inventory slashed and balance sheets cut in face of rising regulatory pressure, finding liquidity has become more of a challenge. A group of banks are hoping to reinvigorate the market though a standardised messaging system.
Cordray’s Semi-Annual Report to Congress Focuses on Mortgages/Lending (March 3, 2015)
CFPB Director Richard Cordray today addresses the House Financial Services Committee for the bureau’s semi-annual report to Congress.
N.Y. May Put AML Onus on Bank Execs (Mar. 3, 2015)
New York is considering a plan to hold top banking executives personally responsible for the quality and effectiveness of their firms’ AML efforts.
Viewpoint: Supervisory or Enforcement Action, Deputy Director Antonakes Explains How the CFPB Decides
The CFPB’s Antonakes explained his bureau’s supervisory approach and enforcement actions and how they are different from that of the federal banking agencies.
Industry Veteran Creates CFPB NPRM Word Cloud
Wondering what the CFPB’s NPRM emphasizes?
House Passes Bipartisan Bill Curbing CFPB Budget; Veto Expected
he House of Representatives on Feb. 4 passed bipartisan legislation sponsored by Rep. Virginia Foxx (R-N.C.) that she says would require greater transparency in government and would cap the CFPB budget for FY2016 at $550 million, $36 million below its expected funding.
Gov. Christie Signs ZIP Code Repeal Bill (Feb. 6, 2015)
N.J. Governor Chris Christie (R) signed into law a bill that eliminates the collection of consumer ZIP code information for gift cards purchased at the POS, putting an end to a protracted legal battle over unclaimed property rules in the state.
NYAG Widens Access to Bank Accounts, But Still Plenty of Room for Prepaid (Feb. 3, 2015)
New York Attorney General Eric Schneiderman wants to increase access to traditional banking services by getting banks to change their account-opening criteria. But broader access to checking and savings accounts doesn’t mean consumers won’t continue to seek out alternatives, including prepaid cards, which may have more features and fewer fees, according to industry observers.
FDIC Advises Banks to Contact Examiners on Brokered Deposits
Prepaid issuers aren’t the only ones confused by the potential implications of the FDIC’s recent FAQs on brokered deposits. The agency offered some clarifications to ABA staff but recommends issuers reach out to their examiners with specific questions.
