PaymentFacilitator’s News Roundup is a curated mix of the past week’s news and articles from around the web, including company announcements, global payments news, and other coverage and analysis of topics relevant to payment facilitators.
Companies that choose to integrate payments into their B2B software offerings must consider risk from a number of perspectives. This week, we report on some of the fundamental issues and decision points behind payment facilitators’ relationship with the industry data security standard.
The last two years have seen a surge of companies moving into the payment facilitator space. That in itself is not surprising. Becoming a payment facilitator offers tremendous flexibility and value for ISVs and VARs. With that flexibility, though, comes potentially significant liability
Combining payment acceptance with your offerings leads to a more streamlined submerchant account enrollment and onboarding process. While the revenue potential for this model is great, so is the level of responsibility. Here are three best practices for submerchant underwriting to help you along the way.
If you’re a payment facilitator, how much do you currently know about the owners of your sub-merchant customers? If you’re a processor, how much do you know about the owners of your payment facilitator customer’s sub-merchant customers? And if you’re a bank, how much do you know about the owners of your processor customer’s payment facilitator customer’s sub-merchant customers (who are, technically, also your customers)?
The Financial Crimes Enforcement Network (FinCEN) has announced a $185 million civil money penalty against U.S. Bank for what it said was failure to adhere to several provisions of the Bank Secrecy Act (BSA).
The New York State Department of Financial Services (DFS) has fined Western Union for failure to implement effective anti-money laundering compliance programs in-house and for failure to report suspicious activity – some of which could have facilitated human trafficking.
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.
Government regulations laid out by the Bank Secrecy Act and the USA PATRIOT Act require businesses to follow certain practices to avoid facilitating criminal activity, even inadvertently. Together, these regulations form the backbone of anti-money laundering efforts in the U.S.
These government regulations are supported by card brand rules that provide direction on payment facilitators’ specific roles and responsibilities. This is an area that can be daunting to many new and even seasoned payment facilitators.
Dr. Heather Mark, Ph.D., director of compliance for ProPay, shared four critical AML practices the payment facilitators she meets do not always fully understand.
The U.S. Treasury clarified its anti money laundering regulations regarding foreign correspondent banks Aug. 30 and the attention it got was a reminder how weighty the Treasury’s words are to those in the payments world. Any time the Treasury speaks about AML PFs should listen, says Deana Rich, president of Rich Consulting.
Rich, a compliance expert, says KYC and AML and transaction monitoring are all practices that the technology companies who become payment facilitators are not used to overseeing, so attention to detail is highly recommended.
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