regulatory developments for mobile payments · bank secrecy act/anti-money laundering electronic...

Regulatory Developments for Mobile PaymentsThe 21st Annual Seattle Conference on Technology Law

December 13-14, 2012Washington State Convention Center in Seattle, WA

Andrew J. Lorentz, Partner Davis Wright Tremaine LLP,Washington, DC

Photo: Google Wallet

Topics

Mobile Payments

Authentication

Consumer Financial Protection Bureau

Bank Secrecy Act/Anti-Money Laundering

Electronic Fund Transfer Act/Regulation E

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Mobile Payments

NFC, cloud, hybrids, QR codes, carrier billing – market din reaching a crescendo?

Evolving (clashing?) roles of networks, issuers, wallets, aggregators and carriers

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Mobile Payments

Consumer and merchant drivers• What does Suze say?• Hope for incremental spend?

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“Get rid of debt now.”

Business of banking / Deposit-Taking

Truth in Lending Act / Reg Z

Regu

latio

n B

Bank Secrecy Act

OFAC Reg D

Truth in Savings Act

Regulation II

Gramm-Leach-Bliley ActFair Credit Reporting Act

Data breach/security

FDIC Deposit Insurance

E-SIGN Act

Unfair, Deceptive or Abusive Acts and Practices Laws

State Money Transmitter Laws

State Privacy and Security Statutes

Card brand rules Gift

car

d

Anti-Money Laundering Compliance

OFAC

TISA/Reg DD

Reg CC

Escheat

Durbin Amendment Identity-Theft Red Flags

Check 21

Truth in Billing Electronic Fund Transfer Act / Regulation E

Regulation DD

Mobile Payments

No specific regulatory paradigm emerging– “Wait and see” under existing scheme of

oversight and functional laws and regs– CFPB testimony to House Subcomm. June 29– Importance of prepaid

Authentication

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2011 FFIEC Supplement on authentication• 2005 guidance →→2011 supplement• Impact and evolving liability shift

Accelerating demand: “Big Data” and social media to supply?

Authentication

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Convergence of physical and virtual standards(?)

Privacy vs. Fraud/Risk Management?

Consumer Financial Protection Bureau

Single-mission agency meets a low-margin business

Enforcement high(low?)lights

Broad sweep of powers yet to be felt by newcomers

Focus on service providers

Project Catalyst and innovation

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Bank Secrecy Act/Anti-Money Laundering

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Enforcement headlines: bad bank behavior

FinCEN rules pending: CMIR, customer due diligence

Electronic Fund Transfer Act/Regulation E

International remittances

General purpose reloadable

Preemption/unclaimed property

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Photo: Square Inc.

Questions…and Presents!

Happy Holidays!

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Andrew J. Lorentz, Partner Davis Wright Tremaine LLP

Washington, DC202.973.4232

andrewlorentz@dwt.com

www.paymentlawadvisor.com

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Disclaimer

This presentation is a publication of Davis Wright Tremaine LLP. Our purpose in making this presentation is to inform our clients and friends of recent legal developments. It is not intended, nor should it be used, as a substitute for specific legal advice as legal counsel may only be given in response to inquiries regarding particular situations.

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© 2012 Davis Wright Tremaine LLP

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