The U.S. financial institutions that are subject to the Financial Crimes Enforcement Network’s (FinCEN’s) new customer due diligence (CDD) Rule were required to comply with revised risk-based procedures and beneficial ownership obligations from 11 May 2018. Similarly, by 15 April 2018, New York State-licensed financial institutions were required to file their first annual certifications attesting to the sufficiency of their transaction monitoring and filtering systems as required by the New York Department of Financial Services’ (NYDFS) regulation.

Federal regulators published guidance on the application of customer identification program (CIP) requirements to holders of prepaid cards and other types of prepaid -instruments. Five federal agencies—the Federal Reserve, FDIC, OCC, National Credit Union Administration (NCUA), and FinCEN—issued the guidance to clarify when a bank should apply its CIP procedures for prepaid cardholders. The guidance also covers how the CIP rules apply to payroll, government benefit, and health benefit cards. The NYDFS finalized AML regulations effective from 1 January 2017, in a risk-based act that requires institutions to monitor transactions for Bank Secrecy Act (BSA) and AML violations, and prevent transactions with sanctioned bodies. A number of international banks, such as Habib Bank, have been sanctioned for non-compliance, with fines totaling $225 million. The second new step in compliance is that a bank’s chief compliance officer, board of directors or other senior-ranking executives must provide the NYDFS an annual certification of compliance with the new rules starting from April 2018. Further, the Commodity Futures Trading Commission’s (CFTC’s) Division of Enforcement has recently created a Virtual Currency Task Force.

Digital-world consumers expect banks to securely step up their technology game


Traditional banks must evaluate their place within the payments ecosystem and be open to partnering with FinTechs and third-party developers to drive value collaboratively.

Collaborative Payments Ecosystem Boosts Customer Centricity


Structural changes are spurring payments industry participants to evaluate the future of the business as well as their role in the months and years ahead.

New payments ecosystem key enablers


The Payment Services Directive 2 or PSD2 has been in full force for more than six months, and its impact is being felt not just in the European Union, but across the globe – with several markets, such as Singapore, Australia, and Nigeria, as well as Hong Kong announcing open banking initiatives inspired by the PSD2


By continuing to navigate on this website, you accept the use of cookies.


Close cookie information