Paybefore, 01.02.2017 – As the U.S. payments industry looks forward to regulatory relief, experts from the Prepaid International Forum talk about regulatory threats and opportunities for e-money in the U.K. and EU.
European regulators reeling from terrorist attacks in Paris in 2015 and Brussels in 2016, among others, turned their attention to prepaid cards last year, in an effort to crack down on terrorist financing. The proposals, which included prohibiting online use of anonymous prepaid cards as well as lowering the thresholds before customer due diligence (CDD) is required put the industry on alert. The Prepaid International Forum (PIF), a nonprofit trade group based in London, responded quickly, arguing for a risk-based approach to regulation rather than knee-jerk reactions that its members believed would do little to actually fight terrorist financing and money laundering. What’s more, the European Banking Authority announced a proposal for stronger authentication for electronic payments—part of its mandate under the Second Payments Services Directive (PSD2)—which many in the industry believe will hamper online commerce and basically put an end to one-click checkout, again without taking true risks into account.
Paybefore spoke with two leaders of PIF’s AML Working Group—Dr. Hartwig Gerhartinger, vice president, group regulatory and governmental affairs, Paysafe Group; and Giedre Mitkute, legal assistant, Locke Lord LLP—to find out more about these regulatory issues and what’s ahead in 2017. (See our EU Regulatory Glossary below for terms that may be helpful in following the discussion.) Read the full article