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
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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