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December 18, 2023
On the web
Governor Hochul Signs Four New Laws to Protect Consumers from Price Gouging, Medical Debt and Unfair Business Practices
Governor Kathy Hochul
September 21, 2023
On the web
U.S. Congressional Committee Passes Anti CBDC Bill
Ledger Insights
September 1, 2022
On the web
The P2P Fraud Conundrum
The Regulatory Review
“Have you ever received an automated message from your bank warning you about an unauthorized payment? If so, you may want to think twice before acting on it. According to a recent report in The New York Times, some individuals have received instructions to send payments through peer-to-peer (P2P) payment apps such as Zelle or Venmo to reverse supposedly fraudulent transactions, only to have scammers steal those payments. And even if victims report the fraud, banks may refuse to return the credit. This increasingly common scenario reveals a critical distinction in what consumer protection law considers to be an “unauthorized transaction.” When thieves hack consumers’ accounts or steal their phones and transfer money, the Electronic Fund Transfer Act (EFTA) considers the resulting transactions to be unauthorized and requires banks or payment services to refund them. But in instances where scammers trick individuals into authorizing payments themselves, Regulation E, which implements the EFTA, does not protect the payments. This subtle distinction marks the difference between an easy refund and the loss of thousands of dollars for victims of fraud. Currently, Regulation E requires financial institutions to credit customers for unauthorized transfers from their accounts made by third parties. In most cases of unauthorized transactions, the financial institution itself has liability. But in some cases where a third-party service gives a customer access to transfers from the customer’s bank account, the regulation holds the service provider liable for unauthorized transactions.”
April 21, 2022
On the web
Explainer: China UnionPay, Russia’s Potential Payments Backstop
Reuters
“Several Russian banks plan to issue payment cards that use the network of China UnionPay as well as that of home-grown payment system Mir, after Visa Inc (V.N) and MasterCard Inc (MA.N) joined other Western firms in suspending operations in Russia. read more UnionPay and Mir are among few options left for Russians to make payments abroad since Russian banks were isolated from the global financial system following Russia’s invasion of Ukraine. Russia calls its actions in Ukraine a “special operation”. read more“
April 18, 2022
On the web
Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments
Bitcoin News
“The Ministry of Finance of Russia recently submitted to the government an updated version of its bill “On Digital Currency” designed to comprehensively regulate the country’s crypto market. Details about the law’s provisions have surfaced in Russian media reports this week. According to the draft, qualified investors, or “professional purchasers of digital currency” as they are now described, will have unrestricted access to crypto assets. Ordinary Russians, however, will be able to buy a maximum of 600,000 rubles (approx. $7,000) worth of cryptocurrency each year. And that’s after they take a special exam .”
Retailers Can’t Discriminate Against Cash Payments, State Law Says
Yahoo
“Massachusetts state law clearly says retailers can’t discriminate against people who want to pay with cash, but the strength of the law is dependent on how Massachusetts Attorney General Maura Healey wants to enforce it.”
March 21, 2022
On the wires
IDnow Announces Partnership With Interpol
“IDnow , a leading European provider for identity proofing, has announced a partnership with the International Criminal Police Organisation – Interpol. The 12 month collaboration will see IDnow experts deliver a series of training programmes to local law enforcement and immigration departments, starting in Abu Dhabi later this month. Lovro Persen, Director Document Management & Fraud at IDnow, commented, “We are thrilled to be working with Interpol to share our knowledge and expertise on the subject of fraud prevention.”
March 18, 2022
On the web
Digital Currency: America on Track With Passed Postal Reform Act
TechEconomy.ng
“The US government took two steps forward in the race toward financial innovation last week. The first was the Postal Reform Act passed by the Senate on March 8th in a bipartisan vote that showed both sides of the government can still work together, which is a rarity in today’s political climate. The following day, the White House released the exhilarating Executive Order which Ensuring Responsible Development of Digital Assets.”
November 8, 2018
Top Post
Hungarian national m-payment system struck down by EU court
Telecom Paper
“The EU Court of Justice has struck down Hungary’s national mobile payments system, saying the monopoly violates the EU’s Services Directive. The European Commission brought the case against the country. The company Nemzeti Mobilfizetesi operates the national mobile payment system since 2014, and use of its services is mandatory for mobile payments of public parking charges, road tolls, public transport and any other fees for services offered by a state body. The providers of those services are, in principle, bound to ensure customer access to their services over the national mobile payment system.”
August 16, 2018
Top Post
The U.S. Treasury Fintech Report and the OCC Fintech Announcement: What They Mean for Banks and Fintechs
Wolters Kluwer
“The Treasury Fintech Report includes a recommendation that the OCC establish a special purpose national bank charter for fintech firms. The significance of the immediate release of the OCC Fintech Announcement the same day is noteworthy.”
August 10, 2018
On the web
U.S. Proposes a National Framework for the Regulation of Fintech
Paul Hastings LLP
“The Treasury Report and OCC Policy Statement lay out an expansive framework to improve the national regulation of the Fintech sector. In particular, the issuance of special purpose charters for Fintech companies, the codification of guidance for sponsorship arrangements between banks and Fintech companies (and proposed legislative fixes to shore-up the sponsorship model), the push for standardized access to account level information, and the harmonization of state money services business regulation and supervision would, collectively, be a significant step toward providing regulatory consistency and certainty for the Fintech industry.”
August 1, 2018
Top Post
Online Lenders And Payment Companies Get A Way To Act More Like Banks
The New York Times
“Online lenders and other so-called fintech firms — including the payment processor Square, the online lender Lending Club and the cryptocurrency exchange Coinbase — have pressed for regulatory routes that would let them cut through the thicket of state and federal laws that govern financial businesses. Heeding those requests, the Treasury Department released a 222-page report laying out the Trump administration’s view on how nonbank financial companies should be regulated. Hours later, the Office of the Comptroller of the Currency, a national bank regulator, announced a new kind of charter that would potentially free such companies from the state-by-state approvals they currently need to offer loans and other financial products.”
July 24, 2018
On the web
How Canada’s Banking Protections Stifle Innovation At Home, But Give Big Six Free Rein To Expand Abroad
Financial Post
“Canada has a reputation for having a relatively steady banking sector and the high degree of regulation is intended to keep the financial system safe. Yet the same rules keeping everything on an even keel could also have the unintended consequences of limiting competition and consumers’ choices. Current rules include restrictions around ownership and anti-money laundering practices, but there are also certain regulatory requirements for capital and other well-meaning standards that set a high bar to clear for any potential newcomers.”
July 12, 2018
On the web
New York State Will Regulate Online Lenders To ‘Level Playing Field’ For Banks
Bank Innovation
“Online lenders may own more than half of the personal lending market, but they face serious headwinds. For one thing, rising interest rates will increase their cost of funds, and perhaps make their offerings less attractive, and for another, regulations may arrive that make operating their businesses more expensive. In New York State, perhaps anticipating a vacuum of consumer protections at the federal level, that second condition has been met.”
June 11, 2018
Top Post
The Oligopoly That Controls India’s Credit Cards And E-Wallets May Be Soon Shattered
Quartz
“This concentration of power is making India’s banking regulator increasingly uncomfortable, especially as the country’s retail payments ecosystem expands rapidly. Not only does the situation put a large number of users at risk if even one company goes under, a select few firms also end up with the personal data, like spending and preferences, of a large number of people. That’s business intelligence worth its weight in gold. So, the RBI now plans to step in, and will release a consultation paper by Sept. 30 on how to widen the market. “The RBI plans to encourage more players to participate in and promote pan-India payment platforms so as to give a fillip to innovation and competition in the sector,” the central bank said on June 06.”
June 7, 2018
On the web
Stung By Compliance Costs, Asia Banks Urge Watchdogs To Approve More Fintech
Reuters
“The Asia Securities Industry and Financial Markets Association said it would like to see greater use of new technologies in “know your client” or KYC anti-money laundering checks, as they promise to drastically cut costs. “Fintech solutions, facial recognition for example, hold out great hope for the industry, but haven’t been embraced as quickly as some might like by regulators around the world,” said Mark Austen, chief executive of the association. The Hong Kong Monetary Authority and the Monetary Authority of Singapore said last year they were exploring whether KYC utilities, central repositories of data that banks can tap to save duplication when adding new clients, should be set up.”
June 5, 2018
Top Post
Ant Financial Shifts Focus Away From Finance To Tech Amid Beijing Crackdown
Deal Street Asia
“Ant Financial Services Group, the dominant Chinese fintech company, is shifting its main focus to technology services and away from payments and consumer finance as Beijing’s crackdown on financial risk deepens, four sources with knowledge of the matter said. The company, which is controlled by the Chinese billionaire Jack Ma, plans to accelerate the shift within the next few years, the sources said. They said the move was propelled, in part, by growing regulatory pressure on Ant‘s core financial businesses, including payments, micro lending, credit rating and wealth management.”
May 30, 2018
Top Post
How Will Ant Financial, China’s Fintech Giant, Be Impacted By New Regulations?
Forbes
“Having a large and diversified business may be great for the bottom line, but it has increased Ant Financial’s vulnerability to potential regulation. Ant Financial is very important to many Chinese consumers, and it may be considered too big to fail. Some consumers use Ant Financial’s Alipay service, invest in Yu’e Bao, and obtain consumer loans from Ant Credit. In this case, regulation can prevent the company from requiring a government bailout if and when financial fragility sets in.”
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