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Real-time payments will continue to reshape the landscape in 2025, as will investment in fraud prevention measures to support the shift to instant settlement. For daily news and analysis subscribe to the https://lnkd.in/grcK6QEX newsletter. #Payments #Finance #Fintech

Real-time payments will continue to reshape the landscape in 2025, as will investment in fraud prevention measures to support the shift to instant settlement. For daily news and analysis subscribe to the https://lnkd.in/gnPcGRKf newsletter. #Banking #Finance #Fintech

Real-time payments will continue to reshape the landscape in 2025, as will investment in fraud prevention measures to support the shift to instant settlement. For daily news and analysis subscribe to the https://lnkd.in/gR8aX8zJ newsletter. #FinTech #Payments #Finance

Today, federal bank #regulatory agencies issued a statement reminding #banks of the #risks associated with #thirdparty arrangements for delivering deposit products and services. While the agencies support #innovation and the safe, compliant use of these arrangements, they have identified various safety, compliance, and consumer-related concerns. The statement outlines potential risks, #effectivemanagement practices, and relevant existing #legal requirements without introducing new supervisory expectations. Additionally, the agencies are seeking further information on a wide range of bank-fintech partnerships, including those involving #deposits, #payments, and #lending. They are interested in understanding these arrangements better and evaluating effective risk management practices. The agencies are considering whether further actions are needed to ensure proper risk management in these partnerships. #fintech #themoreyouknow

Joint SEC and FinCEN Proposal on Customer Identification Programs for Registered Investment Advisers and Exempt Reporting Advisers What does China have to do with KYC requirements? Over the years, in decades working on securities compliance matters for clients around the world with fund managers, broker dealers, portfolio managers, advisors and those exempt from registration as such positions, the one issue that comes up time and time again is the "know your client" information (or the dreaded KYC process). As times change, it is not surprising that jurisdictions would start to formally update the requirements for individual identification. How does a professional meet these requirements in a new digitial age? Well my Dentons colleagues Christopher Kula, Benjamin Mittman and Adam Dunst have an update on exactly how those requirements are being update in the U.S. On May 13, 2024, the Securities and Exchange Commission (“SEC”) and the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) jointly proposed a new rule (“CIP Proposed Rule”) that would require advisers registered or required to be registered with the SEC (“RIAs”) and those exempt from registration under the Investment Advisers Act of 1940 (“ERAs”) to establish, document, and maintain written customer identification programs (“CIPs”). According to SEC Chairman Gary Gensler, the proposal is “designed to make it more difficult to use false identities to establish customer relationships with investment advisers,” and could decrease the risk of bad actors “accessing the U.S. financial markets to launder money, finance terrorism, or move funds for other illicit purposes.” The proposal refers to a recent Treasury risk assessment that identifies the investment adviser sector as vulnerable to such criminal activity by sanctioned entities and others, “most notably the People’s Republic of China and Russia, [which seek] to access certain technology and services with long-term national security implications through investments in early stage companies.” The CIP requirements in the proposed rule already apply to financial institutions like banks, broker-dealers and mutual funds and would build on FinCEN’s February 2024 proposal to expand the definition of “financial institutions” to include RIAs and ERAs under the Bank Secrecy Act, subjecting them to anti-money laundering/countering the financing of terrorism and Suspicious Activity Report filing obligations and other rules.

Did you know you can use alternative data for collections? LexisNexis® RiskView™ Payment Score delivers an actionable, three-digit risk score that better reflects a consumers’ stability, ability and willingness to repay—empowering you to build more focused collections strategies that drive improved results. #skiptracing #collections #lexisnexis

The International Trade and Forfaiting Association (ITFA) white paper on fraud in trade finance is an initiative to address cross-border fraud in trade finance, following several cases within the financial services sector . The working group’s first whitepaper, launched 27 May 2024, “Cross-Border Fraud Initiative,” addresses various types of fraud common in trade finance and includes: - A detailed list of red flags for banks to monitor - Historical case studies of frauds - A directory of tech vendors that can assist financial institutions in detecting and preventing fraud Common fraud typologies include : - Falsifying documents - Over-invoicing/under-invoicing - Phantom shipments - Multiple invoicing/duplicate financing - Transferable LC fraud - Round-tripping - Related party fraud The ITFA initiative focuses on duplicate financing and promotes verification techniques, information sharing among financial institutions, due diligence and regulatory collaboration.

For those in the Canadian FX & cross border payments eco-system, there is a significant Fintrac update happening this summer. Not only do those reporting electronically have to switch to APIs, but the EFT forms themselves are becoming significantly more complex. 👉 Enforcement of changes to the 24 hour rule per June 2021 updates 👉 Specifying the disposition type of incoming/outgoing payments 👉 Identifying the residential status of authorized individuals and beneficiaries 👉 Reporting of transfers where the MSB is both the sender and receiver of the same transfer You can review the draft guidance yourself: https://lnkd.in/gy5tgrtb Join Kooltra and the AML shop at our upcoming webinar on March 21st to learn more about these changes and their impact on the Canadian FX & cross-border payments eco-system: https://lnkd.in/gpjHNFCs. #fintrac #compliance #payments

#FinCEN #BOIreporting #CDD #banks_enlisted FinCEN on Friday officially enlisted banks to help educate small businesses on its new beneficial ownership information (BOI) reporting rule that came into force on Jan. 1. FinCEN issued a notice that highlights the differences between the six-year-old requirement for banks to collect BOI from customers (as part of CDD) and the new(-ish) requirement that legal entities report BOI to FinCEN. “FinCEN encourages financial institutions to share this reference guide with customers that may be required to report beneficial ownership information,” the Treasury AML bureau said when announcing the notice. Some bankers have long feared they would be enlisted to help educate small businesses regarding FinCEN’s new BOI reporting rule. That day has officially arrived.