CFPB Launches Mobile Banking Inquiry, Requests Information (June 17, 2014)
The Consumer Financial Protection Bureau is turning its attention to mobile financial services and is seeking information from the industry and consumers.
Regulation
Will N.Y. Bill Run Payroll Cards Out of Town? (June 16, 2014)
New York State lawmakers, along with Attorney General Eric Schneiderman, came out with guns blazing last week—their target: payroll cards.
Rep. Stivers: Don’t Let Regulation Stifle Innovation (June 16, 2014)
Congressman Steve Stivers (R-Ohio) stressed the importance of the prepaid card industry continuing its work of getting to know federal rulemakers and explaining to them the value the industry’s products provide to consumers, businesses and state and local governments.
Outsourcing: making oversight a forward-looking benefit
Could the establishment of an enhanced outsourcing oversight capability do more for asset managers than simply satisfy the FCA? A more mature set of oversight metrics could be used to provide foresight into how the outsourcer might perform in the future.
The Bancorp Steps up BSA Compliance Efforts, Following FDIC Consent Order (June 13, 2014)
The Bancorp Bank, a wholly owned subsidiary of The Bancorp Inc., this week revealed in an 8K filing with the SEC that it’s stepping up its Bank Secrecy Act (BSA) compliance efforts in accordance with an FDIC consent order that went into effect June 5.
Cordray: Proposed Rules for Prepaid Cards Due by ‘End of Summer’ (June 11, 2014)
The Consumer Financial Protection Bureau (CFPB) has bumped plans to release its proposed rule on prepaid cards to “the end of the summer,” according to Richard Cordray, the agency’s director.
Risk aggregation and reporting challenges intensify for banks
The past month has been a busy one for G-SIBs – global systemically important banks – as they confront the challenges of “what full compliance looks like” in the context of the Basel Committee on Banking Supervision and its Principles for Effective Risk Data Aggregation and Risk Reporting.
Federal Banking Agencies Seek Comment on ‘Outdated, Unnecessary’ Regs (June 5, 2014)
A rare chance to trim back certain redundant financial regulations that seem to spread like ivy has arrived.
Canadian exchange pursues “fairer markets” with MillenniumIT deal
Canadian ‘challenger’ exchange Aequitas, which plans to favour long-term investors by discouraging HFT, has chosen a trading engine and several other tools from MillenniumIT, the Sri Lanka-based technology company owned by the London stock Exchange.
Visa Sets Standards for Prepaid Simplicity, Transparency (June 3, 2014)
Visa isn’t waiting for regulators to help simplify prepaid products for consumers.
Interchange Case’s Next Stop: Supreme Court? (June 3, 2014)
There may be one more round to go in the dispute between merchants and the Federal Reserve over interchange fees and debit routing requirements.
Responding to NPRMs Is Everyone’s Business: Are You Ready to Respond to the CFPB’s NPRM on General Use Cards?
We have the opportunity to make a difference, to be part of the process and to influence the outcome of prepaid regulations.
Collateral management moves to centre stage
Collateral management as it is currently known will no longer exist within a few years as increased regulatory demands, rising levels of automation and growth of industry tools to optimise collateral transform the industry, according to a new survey and report by Sapient Global Markets.
CFPB’s Spring Agenda Includes General Use Cards (May 28, 2014)
The Consumer Financial Protection Bureau could release its long-awaited rules for GPR prepaid cards next month.
Viewpoint: 4AMLD and Its Impact on the Prepaid Industry in Europe
If proposed changes to simplified due diligence go through as drafted, it will drive out a whole section of the prepaid market from Europe.
Uniting entity data – the missed opportunity
In a post-2008 crisis landscape dominated by regulatory reform, compliance is only part of the issue. If firms can address how they manage multiple data sets and deploy a truly enterprise-wide model, they can capitalise on the real opportunity – achieving a competitive advantage.
Survey: KYC action plans 2014
Looked at from a data perspective, many new regulations have overlapping requirements that come back to customer data. Banking Technology joined forces with Markit І Genpact KYC Services and regulatory specialist JWG to look at how firms are approaching the challenges this poses.
CFPB’s Online Privacy Disclosure Option Promises Big Saving but May Fall Short for Prepaid Providers (May 15, 2014)
GPR and payroll providers may be eager to take advantage of what the CFPB estimates will be $17 million in annual saving across the financial services industry. The proposed rule, however, may not be a real option for prepaid providers.
The value of SEPA beyond the SEPA-zone
The work corporates are doing to streamline cash management processes should not end with SEPA implementation, says. Indeed, the principles and ideas underpinning SEPA can inform progress even in the most challenging markets.
Report: Despite Debit Routing Thaw, EMV Ubiquity in U.S. Is Four Years out (May 8, 2014)
While the logjam over EMV debit routing may finally be breaking up, it remains unlikely that EMV will reach the mainstream ahead of the liability shifts the payment networks plan to implement in October 2015.
SEC Issues Bitcoin Warning (May 8, 2014)
Suggesting that investments in digital currencies, such as Bitcoin, might carry with them a higher risk of fraud and a harder time recovering losses in the event of fraud or theft, the SEC yesterday issued an investor alert regarding the decentralized P2P currency.
ITT Pushes Back on CFPB Claims and Why You Should Care
Although this lawsuit involves lending practices, the industry would be wise to pay close attention because of its UDAAP implications, which are applicable to all entities the CFPB regulates.
Delaware Joins Escheat Suit against Retailers (April 29, 2014)
The State of Delaware has thrown its weight behind a civil lawsuit claiming nearly two dozen well-known retailers avoided escheating unused gift card balances to the state by forming special entity corporations based outside the state.
India’s Central Bank Pushes for Enhanced Security (April 24, 2014)
The Reserve Bank of India (RBI) has released a final committee report on enhancing security in the country’s electronic payments sector with the use of Public Key Infrastructure (PKI) technology.
FTC Calls for Greater Authority over Data Security
FTC calls for data security legislation to address recent increase of data security breaches.
Viewpoint: Important Changes to Canada’s AML Laws: Here We Go Again
A new Canadian bill proposes regulations on virtual currencies, cross-border MSBs, due diligence requirements, politically exposed persons and group-wide information sharing.
Illinois Payroll Card Legislation Moves to the Senate (April 14, 2014)
The Illinois House last week approved legislation that, if signed into law, might affect companies’ payroll card programs, beginning Jan. 1, 2015, when the new rules would take effect.
Firms still struggling with SEFs for swaps trading says IPC survey
Trading firms are still struggling with the Dodd-Frank requirement for certain swaps to be traded on registered Swap Execution Facilities. According to a survey conducted by trading communications vendor IPC Systems, 60% of survey respondents said the industry as a whole was behind on meeting the deadlines on SEF trading, though only 39% said their […]
La. Reps Favor Paper Checks over Prepaid Cards in Certain Instance (April 8, 2014)
As tax day approaches, the Louisiana House of Representatives yesterday approved a bill that would end the state’s Department of Revenue practice of automatically sending tax refunds on prepaid debit cards to taxpayers who don’t select a specific method for receiving their funds.
Equity markets “not broken” say TradeTech speakers
Despite the deep controversy created by Michael Lewis’ expose of HFT Flash Boys, global equity markets are not broken, according to a senior capital markets panel at Trade Tech Paris 2014.
EU Parliament Postpones Final Vote on Payments Package until After July Elections (April 3, 2014)
European Parliament today voted in a plenary session to accept the text of the revised payment industry regulations (PSD2 and MIF) that the ECON committee voted on last month.
U.K.’s Financial Conduct Authority Comment Period Ends April 15 (April 3, 2014)
Building on previous consultations by Her Majesty’s Treasury and the Office of Fair Trading, the Financial Conduct Authority (FCA) is soliciting comment regarding the U.K. payments industry, in particular on issues of competition, access, governance, ownership and innovation.
Viewpoint: CFPB’s Draft Model Forms Highlight Problems with Uniform Disclosures
What do apples and oranges have to do with prepaid model disclosures? See David Beam’s analysis of the CFPB’s blog proposal.
D.C. Court Rules ZIP Code Isn’t an Address
Had the case not been dismissed, ZIP code-related class action lawsuits likely would spread.
IRS Says Digital Currency is Property (March 27, 2014)
The IRS has ruled that Bitcoin and other digital currencies are property, not currency, and will be treated as such for tax purposes.
Walmart Opts Out of Interchange Case Settlement, Seeks Damages in New Lawsuit (March 27, 2014)
Walmart this week opted out of the $7.25 billion settlement Visa and MasterCard reached last fall over interchange fees and filed its own antitrust suit against Visa.
US risk spend hits new peak reports DTCC
US financial institutions are spending more on risk mitigation than ever before, according to a new study by post-trade services utility the DTCC.
NTIS Issues Interim Final Rule on Access to Death Master File (March 26, 2014)
The National Technical Information Service today has issued an interim final rule establishing a certification program for access to the Social Security Death Master File. The DMF is a tool used by many industries as a means to thwart fraud.
CFTC calls for international swaps data sharing deal
Global standards and approaches to regulation need to focus more on removing risk from the financial system rather than on compliance – but to do so international regulators will need to harmonise their efforts and embrace technology to a much greater degree.
Viewpoint: Dept. of Education Student Debit Card Report Doesn’t Make the Grade
Heading to college is all about the quest for knowledge. Part of that process is learning to use fact-based, impartial research to reach educated conclusions. Unfortunately, the March 10 Department of Education’s Inspector General’s report, “Third-Party Servicer Use of Debit Cards to Deliver Title IV Funds,” doesn’t make the grade.
