Poll Results: Will the CFPB’s Prepaid Rule Be Repealed?
Congress is considering a joint resolution to repeal the rule, which was released last year. If that happens, what will be the result? Our readers respond.
Regulation
UK and Canada buddy up for fintech businesses
The UK’s Financial Conduct Authority (FCA) and Canada’s Ontario Securities Commission (OSC) have signed a new co-operation agreement to help fintech firms. The deal will enable fintech businesses in both countries to seek support from the financial regulators in each other’s market. It will also help reduce regulatory uncertainty and time to market for firms. Christopher […]
Must-Reads of the Month: February
See what’s hot on Paybefore.com this month, including Global Cash Card’s win against onerous payroll card regulations in New York; the CFPB fending off attacks on multiple fronts; a new Blackhawk same-day rebates program; and more.
APRA’s EFS Form Review consultation: first stage of a long road
On 16 January 2017, the Australian Prudential Regulatory Authority (APRA) released for public consultation its Economic and Financial Statistics (EFS) Form Review. Notably, this consultation package represents a major overhaul of many of the financial and statistical returns currently prepared by the Australian authorised deposit-taking institutions (ADIs) as well as introducing a new set of returns to be submitted. We examine what’s at stake.
European Online Transaction Rule Revised after Payments Industry Complaints
After absorbing hundreds of complaints from the payments industry, the European Banking Authority will relax its pending customer authentication rules for online transactions. But given the rise in popularity of online shopping, the new threshold of 30 euros before two-factor authentication is required may not be enough to assuage industry concerns.
Payments round-up: 21 February 2017
One is the loneliest number that you’ll ever do… so three stories in one will do better. Here’s a round-up of key events to save you time. Featuring Macquarie Bank, Apple Pay and more. The European Banking Authority (EBA) has relaxed its planned rules for increasing choice in how consumers pay for services and products […]
Swift’s KYC registers right notes with Turkmenistan and Uzbekistan
A number of banks in Turkmenistan and Uzbekistan have signed up to use Swift’s Know Your Customer (KYC) Registry, a centralised repository that maintains a standardised set of information about correspondent banks, funds distributors and custodians required for due diligence processes. In both deals, Swift worked with its business partner in the Central Asia region, […]
IAG to launch insurtech hub in Singapore
Insurance Australia Group (IAG) is looking to build an insurtech hub in Singapore. The new unit, Firemark Labs, will act as an incubator for IAG and help teamwork between start-ups and research and tech partners for new products and services across Australia, New Zealand and Asia. Julie Batch, chief customer officer, IAG, says “customer lifestyles […]
Erste Group automates PRIIPs and MiFID II reg requirements with Asset Control
Erste Group Bank has opted for Asset Control’s AC Plus financial data management platform to support its PRIIPs and MiFID II regulatory requirements.
N.Y. Grants Global Cash Card Petition against Labor Dept. Paycard Regs
Payroll card providers that operate in New York can breathe a huge sigh of relief. Global Cash Card tells Paybefore that its petition against the New York Department of Labor payroll card regulations due to go into effect on March 7, 2017, has been granted. The industry had been raising red flags about the regulations, which many feared would result in providers exiting the market, since first proposed in 2015.
CFPB Seeks Help in Tackling Thin-, No-File Challenge
In a Feb. 16 field hearing, the CFPB said it wants industry input on using alternative data to help thin- or no-file consumers build credit scores. It’s a challenge that many in the prepaid industry have been trying to solve for years to better serve cardholders who often are among the approximately 26 million U.S. consumers who don’t have a credit history and another 19 million consumers whose credit histories are insufficient to produce a credit score, according to CFPB estimates.
Blockchain and Bitcoin round-up: 15 February 2017
Life is a cabaret… and a fast one at that. Here’s a round-up of key events to save you time. Featuring KPMG, Microsoft, Hyperledger and more. Japan’s largest Bitcoin exchange Bitflyer has finished a new ¥200 million ($1.75 million) funding round from Dai-ichi Life Insurance Company, Mizuho Capital and SMBC Venture Capital. The banks’ backing […]
Japan seeks stronger ties to Iran’s central bank
Japan’s Financial Services Agency (FSA) is looking to work closer on banking supervision with the Central Bank of the Islamic Republic of Iran (CBI). The pair have exchanged letters on co-operation and the plan is to examine the performance of their respective duties for the “safe and sound functioning” of banking organisations in their countries. […]
8th Circuit Tells Lower Court to Take another Look at Target Data Breach Settlement
The case creates new issues surrounding standing and how to resolve and settle class action claims in the context of privacy and data protection suits, where some members of a group have not suffered concrete harm and thus may not be able to meet the concrete and particularized injury prong of the test for standing.
White House: CFPB Exempt from ‘1 In, 2 Out’ Rule
The CFPB is not required to comply with President Trump’s executive order limiting new regulations, according to a memorandum from The White House. Trump’s order—which requires covered agencies to repeal two regulations for every one new regulation adopted—does not apply to the CFPB, which is considered an independent agency.
Voting Results: Compliance Titans of Payments
Keeping current with the myriad and constantly changing rules and regulations in the payments industry is no easy feat. It takes special people who are sharp and determined to understand and navigate the legal minutiae and how they applies to their organizations or those of their clients. Paybefore is highlighting the achievements of these Compliance Titans, and we need your help.
Data gets greater with new Singapore group
The Monetary Authority of Singapore (MAS) has set up a new Data Analytics Group (DAG) with effect from 15 March 2017 as it looks to improve the financial sector and digital economy. DAG will use data analytics for insights, “enhance the supervision” of financial institutions, make regulatory compliance better for financial institutions, and improve work […]
FCA: experimenting in the sandbox
2017 looks set to be the year in which a number of different jurisdictions vie to become the natural home of the financial technology sector. To help ensure that London remains fintech-friendly, the Financial Conduct Authority (FCA) has created the “regulatory sandbox”.
Global ATM Hacker Sentenced to 8 Years in Prison
The ringleader of three highly organized, global cyberattacks on ATMs resulting in $55 million in losses was sentenced Feb. 10 to eight years in prison and ordered to pay more than $55 million in restitution.
Investing in Innovation: Payoff ahead
We’re only six weeks into the New Year and already we’ve seen significant activity on the regulatory front in the U.S. and more to come in the U.K. and Europe. Meanwhile, many of the other trends we identified as ones to watch in our Year-in-Review report—bots, blockchain and co-opetition—have been dominating the headlines (along with some major acquisitions). Are you investing in the right places?
CIBC automates reg reporting in UK and APAC with Wolters Kluwer’s OneSumX
Canada’s banking group CIBC is implementing Wolters Kluwer’s OneSumX for regulatory reporting across its locations in the UK, Japan, Australia, Hong Kong and Singapore.
Viewpoint: What Openness Means for Payments, Fintech Future
With regulators opening up the payments infrastructure and consumers and business clients demanding á la carte but interoperable financial services from a variety of players, the industry and its would-be disruptors must adapt.
PSD2 and the future of payments
Banks need to do more than just comply with the upcoming revised Directive on Payment Services (PSD2). To survive, banks will need to embrace these changes.
Consumer Groups Cry Foul as House Joins Senate Push for Prepaid Rule Repeal
The CFPB’s final prepaid rule is turning out to be unpopular with the current U.S. Congress: A U.S. representative has followed the lead of a Senate colleague and filed a joint resolution to repeal the rule, which has attracted criticism from industry groups since the agency released it last year. But consumer groups, who lobbied for the rules, are attacking the effort, arguing that it would put consumers at risk.
Appeals Court Denies Efforts to Defend CFPB in PHH Case
Efforts by three different parties to defend the CFPB were thwarted Feb. 2 when a federal appeals court denied the motions to submit briefs on behalf of the CFPB in PHH Corp., et al.v. Consumer Financial Protection Bureau.
DTCC sells Clarient Global and Avox to Thomson Reuters
The Depository Trust and Clearing Corporation (DTCC) has agreed to sell its Clarient Global and Avox businesses to Thomson Reuters.
Barclays to overhaul back office ops & set up standalone entity, Barclays Services
Barclays is embarking on a major back office operations overhaul, with the creation of a standalone company, Barclays Services.
Switzerland to amend banking rules to become fintech-friendly
Switzerland’s Federal Council has issued a consultation paper on amendments required to its Banking Act and Banking Ordinance, to create an environment that helps fintech start-ups thrive in the country.
The European Banking Authority favours arbitrary box-ticking over data innovation
The European Banking Authority (EBA) recently proposed new rules that would require payment card operators to enforce additional security measures, such as passwords or security tokens, for all online transactions over €10, aimed at fraud prevention. This is a clumsy solution to a problem that is already being addressed by far more sophisticated means, argues Nick Wallace, senior policy analyst at Centre for Data Innovation, and policymakers should reject the EBA’s proposal.
Top fintech stories this week – 3 February 2017
Catch up on Banking Technology’s top five fintech stories of the week – all in one place!
Can Sen. Perdue Undo CFPB Prepaid Accounts Rule?
For those disappointed that President Trump’s regulatory relief executive orders wouldn’t extend to prepaid providers—and others covered under the CFPB’s final prepaid accounts rule—Sen. David Perdue (R-Ga.) may be coming to the rescue. On Feb. 1, Sen. Perdue, along with six co-sponsors, introduced joint resolution 19 that provides “congressional disapproval” for the rule, and which says that “such rule shall have no force or effect.”
CFPB Orders UniRush, Mastercard to Pay $13 Million over RushCard Outage
The CFPB is “putting the prepaid industry on notice that companies will face the consequences if consumers are denied access to their money or to the services they pay for and on which they have the right to depend.” In its first enforcement action against prepaid providers, the bureau on Feb. 1 announced that UniRush and Mastercard will pay a combined $13 million for a 2015 service disruption that left cardholders without access to their funds.
UK watchdog driving open banking revolution
The UK Competition and Markets Authority (CMA) says its banking “final order” is giving people greater control over their money and reckons the open banking revolution is getting closer. As Banking Technology reported in August, the CMA unveiled its plans to make banks “work harder for customers” and ensure the “benefits of new technology are […]
Irish Funds and Deloitte power blockchain for regulatory reporting
Irish Funds is working with Deloitte and others to develop a blockchain proof of concept (PoC) for regulatory reporting. The project will focus on the Resident Investment Fund Returns (Money Market and Investment Funds Returns Reporting – MMIF) regulation and will use blockchain and smart contract technology to create a platform for regulatory reporting accessible […]
Equitable Bank automates IFRS 9 reg requirements with Wolters Kluwer’s OneSumX
Canada-based Equitable Bank is implementing Wolters Kluwer’s OneSumX regulatory reporting solution.
Dubai ponders regulatory framework for loan-based crowdfunding platforms
The Dubai Financial Services Authority (DFSA) has issued a consultation paper, “Crowdfunding: SME Financing Through Lending”. The paper proposes a regulatory framework for anyone looking to operate a loan-based crowdfunding platform in the Dubai International Financial Centre (DIFC).
People on the Move: Kathy Moe, FDIC San Francisco
The FDIC has appointed 30-year veteran Kathy Moe regional director for the San Francisco region.
Mastercard Victorious in U.K. Interchange Lawsuit
Mastercard can put a notch in the win column after a High Court judge ruled in the payment card network’s favor regarding a lawsuit brought on by retailers disputing cross-border interchange fees on debit and credit cards.
U.K. Slaps Deutsche Bank with $200 Million Penalty over Money Laundering Case
The U.K.’s Financial Conduct Authority has fined Deutsche Bank £163 million (US$204.7 million) for failing to maintain adequate anti-money laundering controls between Jan. 1, 2012, and Dec. 31, 2015, according to Paybefore sister publication Banking Technology.
Trend Watch 2017: Payments Year in Review
Paybefore’s first-ever payments year-in-review report, sponsored by The Bancorp, is available now. Offering an in-depth look at key trends and the Top 10 payments stories from 2016 that will continue to shape the industry in 2017 and beyond, this must-have resource examines everything influencing the industry from the CFPB and Uber to Brexit and Trump and much more.
