Legal Seminar, Denver, CO
E‐Payments: Regulatory Overview • Wire transfers (Fedwire, CHIPS, SWIFT) • Higher values, higher costs/transaction. – 2015 data: $834T vs. $50 T in ACH • UCC Article 4A skews risks in favor of financial institutions (unlike payment cards, below, where risks skew against the network participants) • International threats to SWIFT network has increased attention on cybersecurity (e.g., $81 M taken from Bangladesh bank) • International sanctions regime particularly relevant in this context. – Treasury restrictions form basis for government compliance efforts outside US borders. E‐Payments: Regulatory Overview • Contract terms (private ordering) provide a foundation. • Supplemental terms provided by Federal, State laws. – Consumer protection measures (State and FTC) – Dodd‐Frank “unfair, deceptive, or abusive acts or practices” (UDAAP) – Lots of regulation on advertising, disclosure, fees, interest, fraud and error correction. – PCIDSS – private ordering on data protection. – BSA/AML, including “MATCH” list and cooperation. – Proactive measures to identify, counteract identity theft (data analytics)
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