The National Money Transmitters Association

The NMTA's Daily News Clippings

Thursday, July 13, 2017

Top Stories

Denial of Banking Services

De-risking and non-profits: how do you solve a problem that no-one wants ...
[Opinion] - July 13, 2017 - TNI.Org - Ben Hayes, Lia van Broekhoven, Vanja Skoric - Over the past few years 'de-risking' has taken on a more specific meaning within the banking and financial services sector where it is used to describe the ...



Mobile money services proving ever popular and growing in much of Africa
[Opinion] - July 13, 2017 - Business Live.Co.Za - Sub-Saharan Africa accounts for more than half of all mobile money services worldwide, with 140 active products across the region, according to a report on Wednesday by mobile ...

AML Compliance Trends

An HSBC Money Laundering Report Can Stay Confidential-For Now
July 12, 2017 - Fortune.Com - A U.S. appeals court on Wednesday blocked the release of a report discussing HSBC Holdings Plc's progress in improving its controls against money laundering, reversing a judge's order that the ...


US launches anti-corruption website for Nigeria
July 13, 2017 - Vanguard Ngr.Com - Vera Samuel Anyagafu - The United States, US Government yesterday launched a Web-based platform that leverages Nigerian citizens' engagement to fight corruption in Nigeria...

Also See:
July 13, 2017 - All Africa.Com - Shola Oyeyipo

Anti-corruption drive left for dead now
[Sri Lanka] - July 13, 2017 - Daily Mirror.Lk - The future of the Anti-Corruption Secretariat, which primarily directed complaints to be investigated by the Financial Crimes Investigation Division (FCID), still remains uncertain as the government ...

3 Top Anti-Corruption Best Practices Businesses Should Adopt
July 12, 2017 - Jdsupra.Com - Stories of corruption and bribery feel like a staple in the news today, but in-house counsel still has to worry about a lot more than just bad press. For U.S.-based companies operating ...


Australia a 'place of choice' for ML due to lack of regulation: ANZ
July 12, 2017 - Msn.Com - Sue Lannin - ANZ Bank says a lack of political will has seen successive Australian governments fail to extend money laundering laws to cover lawyers, real estate agents and accountants...

AUSTRAC report reveals extent of organised crime threat to financial industries
July 13, 2017 - Business Review Australia.Com - Tom Wadlow - Cyber fraud, money laundering and insider trading are the three biggest threats posed by organised crime gangs to the Australian financial system, a new study has shown...

Money laundering is big business in Australia
[Audio] - July 12, 2017 - Player.Fm - Australian real estate and shares are attractive havens to criminals, with claims billions of dollars are being laundered through residential property. Current legislation doesn't cover real estate age ...

Bank staff 'overlook criminal activity to keep clients' business'
[Opinion] - July 13, 2017 - The Australian.Com.Au - Sam Buckingham-Jones - Traders and advisers from Australian banks and other financial institutions are willing to overlook suspected cases of money-laundering and terror ...


CFPB Proposes Changes to Prepaid Card Rule
[Ongoing Story] - July 12, 2017 - Jdsupra.Com -  The Consumer Financial Protection Bureau (CFPB) has requested comment on proposed changes to its prepaid rule, including the potential for another extension of the effective date of the rule. ...

The CFPB Issues Final Arbitration Rule Amid Uncertainty and Controversy ...
[Opinion] - July 12, 2017 - Lexology.Com - On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) issued its final rule precluding class action waivers in arbitration agreements in many consumer financial services contracts. ...

[State] Civil Forfeiture

CT Ends Civil Forfeiture, Sessions Calls for More Drug War (Again)
[Connecticut] - July 12, 2017 - Stop The Drug War.Org - Connecticut has become the 14th state to end civil asset forfeiture, Nevada's state government is moving to ease a potential marijuana shortage, Jeff Sessions gives another drug ...

Dominican Republic

The Dominican Republic's New Anti-Money Laundering and Terrorist ...
[Old Story] - June 23, 2017 - Nat Law Review.Com - Miguel Cano - In an effort to bring the Dominican legal framework up to date with new international standards, on June 1, 2017, the Executive Power of the Dominican Republic promulgated the...


IdentityMind Webinar, July 19, 2017
With a May 11, 2018 deadline to comply with FinCEN's CDD Rule, it is time for a deep-dive into "The Fifth Pillar" of AML. Join us for a webinar in which we'll discuss how to tackle the challenges of FinCEN's Final Rule, and other topics of interest...

Fines, Crimes & Cases

Malaysian company a 'transnational crime syndicate'
[Malaysia] - July 10, 2017 - Malaysia Kini.Com - A Malaysian company with deep business interests in southern Thailand has been accused of being a "transnational crime syndicate" and having caused the kingdom to suffer financial losses worth ...


Finland in top 10 of best countries to be an immigrant
[Survey] - July 13, 2017 - Helsinki Times.Fi - Sweden is the best country to be an immigrant in, according to a recent survey by U.S. News. Finland takes ninth place, with Norway and Denmark also present in the top ten. ...


'AML/CFT' Regulation for Local High Value Dealers
July 12, 2017 - Vox.Gi - The Office of Fair Trading (OFT), in conjunction with the Ministry for Commerce, is raising awareness about the OFT's recent appointment as a supervisory authority for high value dealers under the Proceeds...

New Zealand

Consultation launched to inform new anti-money laundering laws
July 13, 2017 - Live News.Co.Nz - The Ministry has issued a consultation document as part of the Government's move to extend the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (external link) (AML/CFT Act) ...

Call for machine learning to be applied to minimise financial risk
[Opinion] - July 13, 2017 - It Wire.Com - Sam Varghese - The financial sector should undertake risk mitigation strategies with machine learning and data analytics at the forefront in view of the rising threat of criminal exploitation faced by the ...

Remittances & Immigration

Cost of remittances by countries of the world
[Index] - July 2017 - Countries.World - The ratings and indicators: Cost of remittances by countries of the world. Average transaction cost of sending remittances from a specific country(%): World Bank ...

Immigration Disrupted
[Opinion] - July 12, 2017 - US News.Com - Demetrios Papademetriou - Jockeying for economic advantage is as old as human civilization and as new as President Donald Trump's "America First" mantra. Today, economic advantage is typically ...


IMF completes economic review in Somalia
July 12, 2017 - News Ghana.Com.Gh - The management of the IMF has completed the second and final review under the first Staff-Monitored Program (SMP) with Somalia, and the Managing Director of the IMF approved a new ...

South Africa

Financial Intelligence - what businesses need to know
[Opinion] - July 12, 2017 - The Act is designed to make the South African financial system intolerant to abuse in the form of money laundering and the financing of terrorism, putting more emphasis on ensuring international companies ...

State Matters

California: DBO - Monthly Bulletin 
[Please see below; many interesting items and no posted copy could be found online.]
United Kingdom

UK regulator looking to use A.I., machine-learning to enforce financial ...
July 13, 2017 - CNBC.Com - Ryan Browne - The Financial Conduct Authority, an independent U.K. financial regulatory body, is looking into the possible use of artificial intelligence (AI) and machine-learning tools to enforce regulatory ...

PEPs and anti-money laundering: The FCA issues guidance
July 12, 2017 - - The EU's Fourth Money Laundering Directive, implemented in the UK by the Money Laundering Regulations 2017 (MLR 2017), introduced a risk-based approach to tackling money laundering and ...

Virtual Currencies

S. Korea Legalizes Bitcoin International Transfers, Challenging Traditional...
July 12, 2017 - News.Bitcoin.Com - Kevin Helms -Starting next week, Bitcoin will be on the approved list of technologies that can move payments across the South Korean border. Fintech companies in the country will be able to ...

Diving Into Blockchain - Get Fundamentals Right
[Opinion] - July 3, 2017 - Business World.In - Blockchain, at its core is essentially the combination of cryptography and distributed databases. Both technologies were around for a long time. So blockchain is not actually a new technology ...

Kazakhstan Signs Innovation Pact To Become 'Blockchain Singapore'
July 13, 2017 - Coin Telegraph.Com - William Suberg - Kazakhstan is working with Deloitte, the Blockchain company Waves and others to examine how the technology can operate in government. A press release issued today claims the ...


State Matters

California: Department of Business Oversight - Monthly Bulletin

Money Transmitters:  The 2017-18 assessment rate was set at $0.02 per $1,000 of money received for transmission by a licensee in calendar year 2015.  That's an increase of $0.01 from last year's rate.  The 2017-18 assessment rate for issuers of travelers checks and payment instruments was set at $0.63 per $1,000 of total payment instruments and stored value sold by the licensee, the same as last year's rate.  Invoices were mailed on June 30.  Non-EFT payments are due by July 31.  Electronic payments are due no later than August 7.

More information about the assessment calculations for non-money transmitter institutions can be found on the DBO website's Assessment Calculator page.

State Regulators Issue Annual Reports on Non-Bank Supervision

The Conference of State Bank Supervisors has issued three annual reports highlighting the state of non-bank supervision in the U.S.  The reports were developed collaboratively by state agencies participating on the State Coordinating Committee, the Multi-State Mortgage Committee, and the Multi-State Money Services Business (MSB) Examination Taskforce, which are each charged with coordinating the supervision of multi-state, non-depository financial services providers.  

The reports provide significant insight into the non-bank financial market, as well as advancements among state regulators to oversee multi-state non-depository industries.

The Multi-State MSB Examination Taskforce (MMET) is the coordinating body responsible for multi-state MSB supervision.  Highlights from the MMET 2016 Annual Report include:
  • A total of 56 multi-state MSB examinations conducted.
  • Examinations of 98 percent of money transmitters operating in 40 or more states, by at least one state.
  • Examinations of 78 percent of money transmitters operating in 20 or more states, by at least one state.
The State Coordinating Committee (SCC) is the multi-state regulatory oversight group responsible for the coordination of multi-state non-bank financial services exams with the Consumer Financial Protection Bureau (CFPB).  The SCC 2016 Annual Report  details:
  • The facilitation of multi-state examinations with the CFPB that included mortgage origination and servicing, debt collection, payday lending entities, money services businesses, and - for the first time - auto lending.
  • The development and deployment of updated examination tools that allow state regulators to better share information, streamline coordinated supervision, and reduce regulatory redundancies.
The Multi-State Mortgage Committee (MMC) is the main multi-state coordinating body for the state system of mortgage supervision.  The MCC 2016 Annual Report
  • A continued increase in focus on non-bank mortgage servicing examinations.
  • The implementation of a regulators' guide to better coordinate mortgage servicer supervisory actions. 
  • The widespread deployment of an examiner tool that will guide state regulators' risk-based approach to mortgage supervision.
CSBS Fintech Advisory Panel To Modernize State Regulation

The Conference of State Bank Supervisors (CSBS) is seeking representatives from the financial technology sector who wish to serve on a new advisory panel with state regulators.  

To apply for a position on the CSBS Fintech Industry Advisory Panel, log onto this online portal and provide a statement of interest along with basic information about your company by Friday, July 14th.  Panel members will be selected after a short review by state regulators.

The advisory panel will discuss existing pain points in multi-state licensing and supervision, brainstorm possible solutions, and provide feedback to ongoing state initiatives. The first meeting is expected to be held this fall.

The advisory panel is one part of CSBS' Vision 2020, a series of initiatives designed to forge an integrated, 50-state licensing and supervision system that removes friction experienced by fintechs, while ensuring safety and soundness and strong consumer protections.  CSBS seeks representatives from a range of industries, including but not limited to money services businesses, consumer credit providers, mortgage loan originators, debt collectors, bank services companies, and banks.  More information about the advisory panel is available here.

Money Transmitter Activity

New Money Transmitter

Tipalti Payments, Inc.
Filed: 5/23/17

Acquisition of Control

Alipay (UK) Limited, to acquire control of MoneyGram Payment Systems, Inc.
Filed: 6/5/17

FleetCor Technologies, Inc., to acquire control of Cambridge Mercantile Corp. (U.S.A.)
Filed: 5/15/17

SCRS Acquisition Corporation, to acquire control of JPay Inc.
Filed: 5/11/17


Editorial Note

We try to mark those stories that stray from factual reporting into the expression of opinions. Opinions expressed, including mine, are those of the respective authors and do not necessarily reflect those of the NMTA or its members.

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