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)