12th National Forum on Emerging Payment Systems

Boot Camp – The Technologies Fueling Emerging Payment Systems: Practical, Legal, and Regulatory Considerations for Attorneys and Compliance Professionals Relating to Mobile Payments, Mobile Wallets, Digital/Virtual Currencies, Blockchains, EMV Cards

In order to provide accurate and effective advice to your company or clients, it is essential that you have an in-depth understanding of the technologies underlying new and emerging payment systems. This interactive Boot Camp will provide attendees with a firm grip on the technologies that are used in a wide range of innovative payment systems, and how the underlying technology impacts legal and compliance considerations.

Topics to be addressed include:

• New technologies applied to traditional payment systems
• Analyzing the technology used in each step of various emerging payment processes and systems
• Virtual/digital currencies, including bitcoin
• Blockchains – what are they and how might they transform the payments industry, beyond crypto currencies
• Near field communication (NFC)
• Internet-based payments
• Mobile apps, payment and wallets: Apple Pay
• EMV and tokenization: Cardholder validation methods; Underlying technology; Lack of standardization
• How funds are transferred
• Understanding the new and emerging data security technologies
• The range of information captured by emerging payment systems and devices and where this information is stored
• Structuring new products and product enhancements in ways that are intuitive and easy for customers to use but that also ensure regulatory compliance and data security
• Which regulatory bodies govern this space: FinCEN; CFPB; OFAC; FDIC; CFTC; FTC; FCC; state agencies
• Regulatory considerations: Reg E and Reg Z protections; AML compliance; fraud prevention standards; cybersecurity and data privacy issues; UDAAP disclosures; other disclosures
• Examining the regulatory gaps and clarifying areas of uncertainty in relation to new technologies

and More
7:10 – 8:20 am
(registration opens at 7:00 am; separate registration required)

Main Conference Registration

Co-Chairs’ Welcome Remarks

Industry Roundtable on the Developing Payments and Financing Landscape: Key Insights and Strategic Advice on Where the Payments Industry is Headed and What New Products, Services, and Technologies Are Changing the Face of Payments Including Blockchains,

• Which of the new and emerging payment products, services, and technologies are really going to catch on and impact the payments landscape, and which are not?
• Impact of Fintech on the banking industry
• Points, loyalist and rewards programs
• How does a company that was not historically a financial services provider, but suddenly finds itself as such (e.g. Apple, Google, Facebook), adapt to the regulatory framework?
• How the key mobile payments companies are structuring their business models
• Impact of mobile wallets/payments on the existing payments ecosystem
• How does the specter of regulatory oversight affect and impact innovation?
• Assessing the relationship between banks and alternative payment providers
• Banking Application Programming Interfaces (APIs) and the Gig Economy
• How have banks responded to blockchain technology and where is this headed?
• How will regulators respond to blockchain?
• Overlaps between the payments industry and the nascent sharing economy
• Regulatory and compliance issues arising from the sharing economy
• The safety and legality of peer-to-peer payment (P2P) schemes
• Crowdfunding issues

FinTech, Mobile Wallets and Mobile Payments, Banking APIs, the Sharing Economy, P2P Payment Developments, and More

Digital, Virtual, and Crypto Currencies: Assessing and Overcoming the Regulatory and Compliance Challenges Relating to Bitcoin and Its Brethren, and Evaluating the Long-Term Viability of Such Currencies

• Market outlook: the different types of virtual and digital currencies from A to Z
• The bitcoin security model
• Non-speculative digital money
• Impact of crypto currencies on the payments landscape
• Assessing the emerging regulatory framework governing digital/virtual currencies
• Determining who is subject to regulation
• Will an overarching federal regulatory framework develop in this space?
• Which federal agencies have already weighed in and what have they said?
• Status of regulatory efforts at the state level

Break

The Evolving Federal Regulatory and Enforcement Paradigm: Practical Guidance and Best Practices for Complying with New Mandates from the Key Federal Agencies Overseeing Emerging Payment Systems

• CFPB’s rule on prepaid accounts
• OCC’s statement on innovation for banks
• Project Catalyst
• How federal regulators view the emerging payments landscape
• Which products and services are of the most concern to federal enforcement agencies and why
• Overview of recent high-profile cases, as well as what penalties have been assessed against whom and why
• FinCEN’s initiatives in the payments space
• The FBI’s VCET
• Consumer protection concerns
• Efficacy of existing regulations, many of which were written without emerging payment systems in mind
• Assessing the key issues and pitfalls at the federal level relating to money transmission
• FTC’s crackdown on payment processors
• What will the regulatory landscape for emerging payment systems look like in the near future and which agencies will be involved?
• How are the agencies dealing with key departures and understaffing issues?

Networking Luncheon for Speakers and Delegates

Ensuring Compliance with the Increasingly Aggressive State Regulatory and Enforcement Framework Governing Emerging Payment Systems: Bit Licenses, New Issues Relating to State Money Transmitter Licenses (Including the Examination Process),

• State licensing requirements for virtual currencies
• Perspectives on the policies behind money transmission laws, regulations, and licensing requirements
• Assessing the key issues and pitfalls relating to money transmission
• Issues arising from state regulation and enforcement orders for money transmitters
• How various payment models relate to money transmission
• Costs and difficulties associated with obtaining licenses in multiple jurisdictions
• Avoiding state licensing requirements
• Money transmission as payment processing and issues related to this
• Fallout from California’s money transmission law and impact on the payments market
• Which states are the most active in the area of emerging payments?
• Abandoned property nuances
• Can state regulations and government resources keep up with the evolving technology of new payment products?
• Overcoming the challenge of complying with the increasing body of state consumer protection laws, especially those that are ambiguous in their application to emerging payment systems
• Which, if any, state regulations are unduly burdening innovation without providing significant consumer protections?
• Complying with varied state consumer information collection requirements

​Payment Processing, and Other Considerations

Mobile Payment Systems and the Challenges Facing Financial Inclusion: Managing the Expectations of Millennials, the Underbanked and the Traditionally Banked

• An in depth analysis of the expectations among each group
• Looking beyond cash-only operations
• Financial literacy
• Data collection
• Merchant solutions
• PR optics

Break

Balancing Innovation with Consumer Protection: How to Make It to Market in the Emerging Payment Ecosystem in 2016 and Beyond

• Practical legal and regulatory considerations
• Unbundling of financial services
• Self executing contracts and letters of credit
• Limitations on usefulness and affirmative risks
• What do you do to structure your service
• Patent protection and money transmission licensing/avoidance
• Due diligence
• The disclosure regime
• Balancing innovation with compliance
• Market structures and investment options: When to sell; Investor strategies

Developing, Implementing, and Maintaining AML, Terrorism Financing and Fraud Deterrence Programs That Will Provide a Competitive Advantage and Pass Muster in Today’s Enforcement Environment, Without Negatively Impacting the Customer/User Experience

• Implications from and best practices relating to implementing automated AML and fraud tools
• Opportunities for Fintech companies to develop robust AML and fraud prevention programs, allowing for a competitive advantage over banks and other Fintech companies that are behind the curve
• Working with law enforcement to mitigate the risks of money laundering and fraud activities
• Incorporating data analytics into your AML compliance initiatives
• Striking the proper balance between AML compliance, fraud prevention, and the customer/user experience
• Best practices for ensuring BSA compliance in the absence of clear guidance
• Beyond BSA: what other statutes come into play when addressing AML requirements?
• Best practices for identifying suspicious activity and filing SARs
• Evaluating your current AML program and identifying gaps or weaknesses
• Best practices for conducting an AML investigation
• Determining which parties are responsible for which aspects of AML compliance
• Working with retailers and other parties to acquire information necessary for AML compliance
• Drafting contracts and agreements to enhance AML compliance
• New FATF recommendations; controlling for PEPs
• Asset forfeiture/seizure and its implications for emerging payment systems
• Identifying and combating fraud relating to tax refunds and government benefits
• Leveraging your AML program to detect fraud
• Evaluating your current fraud deterrence program and identifying gaps or weaknesses
• Assessing the effectiveness of product safeguards and techniques used to reduce occurrences of fraud and improve risk management

Conference Adjourns to Day Two

Continental Breakfast

Cybersecurity and Data Privacy Following the CFPB Consent Order In Re: Dwolla, Inc.: Ensuring That New Payment Offerings and Services Effectively Protect Sensitive Customer Information, Both in the U.S. and Abroad

• The CFPB’s issuance of their first cybersecurity order in the Dwolla case
• Tokenization; EMV implementation
• Implications arising from the Court of Justice of the European Union’s invalidation of the U.S. Safe Harbor Framework for data transfers from Europe to the United States
• The fallout from recent major breaches
• Data security and privacy concerns relating to transactions conducted on mobile devices
• New and emerging privacy and data security risks associated with evolving technologies
• How to ‘comply’ with existing conflicting privacy regulations
• Privacy disclosures
• Available & emerging security options
• Enhanced data protection initiatives
• Communication between legal and marketing
• Assessing what data you collect, or may collect, from consumers, and how that data may be used
• Mitigating risk of a data breach and minimizing fallout if one does occur
• Location data and privacy considerations/
• PCI compliance

Break

Third-Party Regulatory and Compliance Risks and UDAAP Issues Specific to Emerging Payment Systems and How to Best Manage Them

UDAP/UDAAP

• Roles/responsibilities of service providers
• UDAP/UDAAP, disclosures, and marketing
• Regulatory and compliance considerations for new payment models
• Adequacy of disclosures
• The Abusive Standard and ramifications
• Proposed ruling on arbitration
• Terms and conditions
• Effect on class actions and discovery
• Add-on products and implementation

Third Party Supervision and Risk

• The effect on corporate compliance programs
• Data governance issues
• The importance of vendor supervision
• Outsourcing and risk of liability
• Competence & integrity of employees
• Digitizing performance and identifying triggers

The Global Emerging Payments Landscape: Critical Legal, Regulatory, and Compliance Challenges in Key Markets and Best Practices for Overcoming Them

• The emerging international payments landscape: how international payment developments are affecting cross-border remittances, payment processing, and adoption and growth rates in key markets
• Expanding beyond North America: key considerations and proven strategies for entering into or accepting payments from new markets, including the EU, Asia, and Latin America
• Mobile payments and mobile wallets: how this disruptive and evolving technology is changing the face of the global payments market
• Specific areas of concern relating to cross-border remittances
• New and emerging payment systems being used around the world: China, Japan, EU, Middle East, India, and Africa
• Dealing with multinational jurisdiction
• Establishing enterprise-wide, multinational compliance programs
• Assessing the likelihood of legal and regulatory uniformity at the international level
• Lessons learned from the introduction of new payment systems into other countries
• Foreign emerging payments start-ups
• Considerations for companies interested in entering the U.S. market
• International e-commerce facilitation
• International data security and privacy efforts
• Foreign exchanges and B2B

Main Conference Ends-Lunch for Workshop B Participants

Master Class – Credit, Debit, and Prepaid Cards: New Regulations and Reforms and Their Impact on ‘Traditional’ Payment Methods

With new and emerging reforms changing the face of the industry, credit, debit, and prepaid card companies are trying to stay afloat and remain in compliance. Participants in this Master Class will obtain a deeper understanding of the challenges and changes affecting the industry, and they will come away with best practices and effective solutions for the new regulatory paradigm

Topics to be addressed include:

• The CFPB’s new prepaid card rule – an in-depth exploration of the extension of Reg E protections to ‘prepaid’ accounts, ‘Know Before You Owe’ disclosures, the rule’s treatment of credit and overdraft features, industry concerns, operational and implementation challenges, and more
• The FDIC’s recent guidance on brokered deposits and what it means for the prepaid industry and consumers
• How recent changes are impacting compliance initiatives
• The Durbin Amendment and its impact on the markets
• Developing prepaid products that qualify for exemption
• Understanding new disclosure requirements
• Best practices for disclosures
• Modifying terms to ensure compliance
• Providing proper notice for opting into overdraft
• Navigating through increased transparency requirements, including additional disclosure on the Fed website
• ‘Plain English’ disclosures
• TILA/UDAP violations in the context of card issuance

1:00 PM – 3:00 PM
(registration opens at 12:40 PM; separate registration required)