Fraud in the payments space is nothing new. In fact, it is fairly pervasive across the (now numerous) available payment systems. And despite the clear benefits of faster payments, the advent of faster, more easily accessible methods of payment has given rise to new opportunities
For years, “FBO” has been one the payments industry’s favorite buzz words. The FBO account structure has been a common “best practice” by payments providers seeking to remove themselves from the flow of funds to reduce their risk of being regulated as a money transmitter.
Blockchain has made enormous promises to transform finance, but regulatory challenges keep legacy frictions alive. When the SEC and FINRA first attempted to apply old custody and customer protection rules to digital assets, they were left wrestling with questions never envisioned by 20th-century lawmakers. Now
This week, New York’s new surcharging law went into effect, replacing the prior surcharge ban which had been attacked at the U.S. Supreme Court (as discussed here). The old law was simply a wholesale ban on credit card surcharges, although since being reinterpreted by
Stablecoins have evolved from simple trading tools into a major pillar of the digital asset economy – and regulators are taking notice. Defined as digital assets pegged to a reference value (like the U.S. dollar), stablecoins can be collateralized or algorithmic, each carrying different risks.
As a corporation that handles ACH transactions on behalf of others, you may have heard your financial institution refer to you as a “Third-Party Sender.” Common examples of Third-Party Senders include payroll processing companies, rent payment companies, and other bill pay providers. If an entity
AI and machine learning are fueling the next wave of change in financial services, promising efficiency and smarter decisions – but they’re also ushering in a maze of new legal headaches. Regulators, eager to encourage innovation but wary of risk, are focusing on whether AI-driven
On January 19, 2021, several federal banking regulators including FinCEN, the Federal Reserve, the FDIC, NCUA, and the OCC jointly issued answers to several frequently asked questions (FAQs) regarding suspicious activity reports (SARs) and other anti-money laundering (AML) considerations for financial institutions covered by SAR
Digital asset custody is one of the thorniest regulatory challenges in U.S. financial law. Investment advisers and broker-dealers must follow strict custody and client-asset protection rules – but these rules were built around physical certificates, banks, and transfer agents, not cryptographic keys and distributed ledgers.
Blockchain may be new, but the financial system problems it aims to solve aren’t. The 1960s “Paperwork Crisis” pushed regulators to modernize markets through electronic trading and coordinated clearing systems. Today, blockchain is positioned as the next major upgrade – offering a shared, tamper-resistant ledger