Category: Risk/Compliance

RBI Recommend Regulatory Sandbox for Fintechs; Cashless Push Gains Traction in India, Hits $2 Trillion in Transaction Value: News Roundup

The Reserve Bank of India recommends a regulatory sandbox for fintechs while the country’s push towards a cashless society gains traction with a surge to $2 trillion in transaction value. The UAE Central Bank also develops a national strategy to facilitate the push towards cashless.

Compliance in 2018: “Consumer Harm” Still Front and Center

Last year was a regulatory year to watch in the U.S., as a new – more anti-regulation – administration took the helm.

And it certainly did deliver some drama as CFPB Director Cordray departed, kicking off a fight for control of that agency.

We asked Deana Rich, CEO of Rich Consulting, to go beyond the spectacle and talk about any impact the new administration has had on regulatory issues and what payment facilitators should watch for in 2018.

New York’s OCC Fintech Charter Lawsuit is Dismissed

As previously reported, last December saw the first public announcement from the Office of the Comptroller of the Currency (OCC) regarding the intent to begin accepting special purpose bank charter applications from fintech organizations. And since then, the response has been a mixed one. Most recently, a New York Department of Financial Services (DFS) lawsuit has been dismissed based largely on a “perceived lack of threat to the DFS’ own regulatory powers.”

Customer Due Diligence Requirements are Changing for Financial Institutions. What Does This Mean for PayFacs?

Financial transparency and security are important. FinCEN and the staffs of the Federal functional regulators and the Department of Justice agree. As such, FinCEN has determined that more explicit rules for covered financial institutions with respect to Customer Due Diligence (CDD) are necessary to clarify and strengthen CDD within the Bank Secrecy Act (BSA) regime.

China Pushes Back on Cashless Trend

China has become a popular example of the potential for digital transactions to overtake cash, as its citizens’ mobile payments usage has increased exponentially in just the last few years. The use of QR codes is quickly displacing cash use across its cities.

But according to recent media reports from the region, not everyone there is necessarily happy with the disappearance of cash or the pervasiveness of mobile payments.

Acting Comptroller Defends Fintech Charter

Last week, Acting Comptroller of the Currency Keith Noreika told the audience during an address in Washington, D.C., that he thought regulating nonbanks through a federal fintech charter was “a good idea.”

Noreika, a Trump administration appointee, defended the OCC’s right to establish the charter championed by his predecessor, Obama appointee Thomas Curry, despite states’ claims to the contrary.


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