Registration & Continental Breakfast

Co-Chairs’ Welcome Remarks

FinTech Compliance 2020: An Interactive Discussion with Industry Leaders Addressing the Top Five Challenges Keeping the FinTech Industry Up at Night

Kate Karas
General Counsel
Chime

Rob Pelkowski
Senior Director, Associate General Counsel
PayPal

Andrew Lorentz
Partner
Davis Wright Tremaine LLP

Jodi Golinsky
Director, Associate General Counsel
Shopify

Given the current rapid pace of payments innovation, the emergence of new technology applications continuing to sow the seeds of financial services disruption, and the increasing rate at which FinTech companies are partnering with banks and non-banks to enter the market in record numbers – there is no shortage of questions surrounding how federal and state regulatory frameworks will be applied and adapted to the new payments landscape. Additionally, banks, FinTechs and payments companies are wondering how to construct their priorities for the year to come. This opening panel of industry experts will engage in an interactive discussion to identify and examine the top five compliance challenges keeping the FinTech & payments industry up at night, and how to best address them.

Examining the Latest Federal Regulatory Initiatives Impacting the FinTech and Payments Landscape

Laurie Sellick
Corporate Counsel, Product
Affirm

Darren Lubetzky
Attorney
Federal Trade Commission (FTC)

Eric Goldberg
Partner
Akerman LLP

• Identifying what products, services and new technologies are of most concern to the federal regulatory and enforcement agencies and why
• Examining the latest initiatives of the federal regulatory bodies governing the payments and FinTech industries: what strides are they making to foster innovation and update regulations to fit newer technologies? (FinCEN, FDIC, SEC, OCC)
• Assessing the latest activity of the CFPB Office of Innovation
  • The current and future state of their product sandbox proposal and no-action letter policies
• Tackling the latest regulatory challenges that FinTech’s are currently facing
• What are the implications of the OCC & FDIC’s proposed rules to overrule the Madden vs. Midland decision? How will this affect FinTech companies offering a credit product?
• The latest updates regarding the OCC FinTech Charter and why it has not worked
• Examining regulatory agency initiatives designed to adapt to the current payments landscape and facilitate positive interactions between the regulators and FinTech start-ups
• Best practices for ensuring compliance with new and emerging mandates from the key federal agencies overseeing FinTech and payments

Morning Coffee Break

Navigating the Multi-State FinTech Regulatory Regime: Evaluating Recent State Strides in FinTech Regulation and the Latest Initiatives Aimed at Harmonizing and Strengthening Multi-State Supervision

Matthew Homer
Executive Deputy Superintendent for Research and Innovation
New York State Department of Financial Services

Flavia Naves
General Counsel & Chief Compliance Officer
Qwil

John P. Kromer
Partner
Buckley LLP

• An overview of the numerous modifications to state money transmitter licensing requirements that have recently taken place
• The latest state-level initiatives aimed at modernizing and harmonizing financial regulation of FinTech and non-bank payments companies operating nationwide
• The latest on the CSBS’s Vision 2020
• Developments in state regulation of consumer lenders, bit licenses, payment processors and beyond
• Actions being taken to better align multi-state licensing, examination and supervision
• Assessments and audits of state regulatory practices to better foster innovation without sacrificing safety, soundness or consumer protection

Networking Luncheon

The Future is Now: How Artificial Intelligence is Currently Transforming Financial Services and Tackling the Legal and Compliance Challenges that are Coming Down the Pike

Samantha Bautista
Senior Product & Regulatory Counsel
Marqeta

David Beam
Partner
Mayer Brown LLP

Cassandra Lentchner
Senior Counsel
Pillsbury Winthrop Shaw Pittman LLP

As we progress into 2020, Artificial Intelligence has become much more than an experiment for financial services institutions. It is a true competitive differentiator that can help banks and payments companies deliver hyper-personalized customer experiences, improve decision-making and enhance operational efficiency. While this is all considered transformative and revolutionary, AI presents a wide range of dangers for companies, especially in the areas of regulatory compliance, privacy and ethics. This panel will engage in a close examination of:

• The various different ways that financial institutions are using AI today and what the future holds
• How AI is playing a role in lending, and identifying and managing the risk of discrimination by AI systems
• How AI is being used to detect fraud and suspicious activity in payments and the legal, regulatory and compliance risks associated with this
• Regulatory issues related to the use of AI, and strategies for engaging with regulators on AI-related matters
• Special cybersecurity and data privacy issues that AI applications present
• Unique challenges faced by regulated institutions who are trying to develop AI
• Issues unique to AI to consider when negotiating licensing agreements, joint development agreements and other types of AI-related contracts
• Acquiring, investing in or financing AI-focused companies

Assessing the Latest Strides in the U.S. Faster Payments Initiative

Nancy Brooks
Lead Banking & Financial Products Counsel
Stripe

Mark Hargrave
Partner
Stinson Leonard Street LLP
Member of the Federal Reserve’s Faster Payments Task Force

Kassi Arana Quimby
Vice President, Industry Relations
Federal Reserve Bank of Chicago

While many countries have already upgraded their payment systems to allow payments to be sent within seconds between payers and recipients, faster payments in the U.S. have been being developed in a fragmented way, and without collaboration across the payment industry. With over 10,000 depository institutions and hundreds of non-bank payment providers, it is more challenging to implement improvements to the U.S. payments infrastructures in a coordinated way, and thus the U.S. payment system is at a critical point in the evolution of faster payments. This panel will examine:

• What regulations, rules and standards are presenting hurdles to effecting faster payments in the U.S.
• How to balance the desire for real-time payments with the need to keep payments secure and prevent fraud
• Examining the Federal Reserve’s plan to develop a new, round-the-clock, real-time payment and settlement service to support faster payments

Afternoon Break

A Tactical Tool-Kit for Buying, Selling and Investing in Payments Companies: First Hand Strategies for Tackling Deal Points, Regulatory Challenges, Diligence Issues and Post-Signing Coordination

Donald Mosher
Partner
Schulte Roth & Zabel LLP

Aaron Gregory
General Counsel
Remitly

Elan Mendel
Senior Managing Counsel
Regulatory Affairs Mastercard

Michael E. Gilligan
Partner
Schulte Roth & Zabel LLP

When engaging in buying, selling and investing in payments companies, there are a number of compliance hurdles to navigate, as well as diligence requirements, transitional challenges and considerations for post-signing coordination for regulatory approvals. Tune in while a regulatory attorney, a corporate M&A attorney, and two esteemed counsel from a bank and payments company delve into these various challenges and how to tackle them at every stage of the deal.

Examining the Implications of PayPal’s Lawsuit Against the CFPB Over Their New Prepaid Card Rules: What Do the New Prepaid Accounts Rules Mean for New and Future Products?

Deborah Baxley
International Mobile/Card Payments
PayGility Advisors

Emily Goodman
Vice President & Senior Counsel
American Express

Brian C. Tate
President & CEO
Innovative Payments Association (IPA)

• Implications of the new prepaid account rules on hybrid cards, digital wallets and checkless checking
• Examining PayPal’s lawsuit against the CFPB alleging that the new prepaid rule is unconstitutional
  • What are the potential far reaching implications of this lawsuit and how could this change the face of prepaid in the near future?
• Addressing compliance risks faced by FinTech companies that are offering prepaid/banking products but perceive themselves as a nonfinancial company

Conference Adjourns – Cocktail Hour

Registration & Continental Breakfast

Open Banking – Is the U.S. Next and What Will this Mean?

David Herron
Chief Payments Counsel
Uber

Brian Crist
VP of Payments, Legal
eBay

A shift towards open banking has been seen across the globe, evidenced by various regulatory initiatives such as the EU’s Second Payment Services Directive (PSD2). Despite its many benefits, open banking will raise a number of new risks and considerations for financial institutions. While regulators in the U.S. are hesitant to mandate an outright move toward open banking, the majority of the industry views open banking as more of an opportunity than a threat, and many believe that it will help bring banks and FinTechs together. This panel will examine:

• Open Application Programming Interfaces (APIs) that are currently under development
• The regulatory response and indications as to whether the U.S. will be next to adopt open banking
• Considerations for financial institutions and Third Party Provider (TTPs)
  • Implementing effective authentication controls
  • Developing clear policies around data governance and security
  • Establishing mitigation reporting processes in the event of cyber or fraud incidents

How Banks and Credit Unions Should Best Approach a Fintech Partnership to Ensure Success

Monique McNeil
Vice President and Senior Legal Counsel
HSBC

Erin Fonte
Partner
Hunton Andrews Kurth LLP

Duncan Douglass
Partner
Alston & Bird LLP

Banks are increasingly seeing that taking on a fintech partner can enable them to offer new products and services, develop new delivery models, and enhance the efficiency and effectiveness of back-office functions. However, despite the growing awareness of the value of these partnerships, dispositional mismatches between banks and fintech companies have caused banks to struggle to make these partnerships work. This panel will share insights on:

• Finding the right partnership
• Modifying traditional risk and compliance practices so as to avoid stifling the innovation that is at the core of the Fintechs appeal
• Reviewing and honing operations, and aligning business and risk management goals across strategy, culture and information sharing

Coffee Break

The Present and Future of Cryptocurrency: What’s Working, What’s Not, and Lessons Learned from the Evolution of the Facebook Libra Coin

Chris Daniel
Chair, FinTech and Payments Group
Paul Hastings LLP

Rebecca J. Simmons
Partner
Sullivan & Cromwell LLP

Jeremy M. McLaughlin
Partner
K&L Gates

• Assessing how cryptocurrencies are most recently disrupting and changing the FinTech industry
• Examining the latest regulatory risks involving the new FinTech and cryptocurrency revolutions; how are the regulators responding?
• Discussing the evolution of the Facebook Libra coin: what are the regulators’ key worries about this cryptocurrency, and what lessons has its evolution taught the industry?

Strategies for Implementing Robust BSA/AML and Fraud Deterrence Programs: Gaining a Competitive Advantage Over Other Banks and FinTech Companies That Are Behind the Curve

Barrie Van Brackle
Partner
Orrick, Herrington & Sutcliffe

Krista A. Griffith
Associate General Counsel, Legal
Visa

Laurel Rimon
Partner
O’Melveny & Myers LLP

Susan Lea Smith
Vice President and Senior Legal Counsel for Global AML/CFT Compliance
Western Union

Due to ongoing supervisory and enforcement actions, and increased monetary penalties, FinTechs and payments companies are facing increased pressured to address BSA, AML and fraud deterrence risks head on. This panel will provide insights on:

• How FinTech companies can develop and maintain effective BSA/AML and fraud prevention programs
• Which party should bear the risk/burden?
• Identifying and assessing the money laundering and fraud risks that may arise in conjunction with the development of new payment products, delivery mechanisms, and technologies
• Taking a look at the most recent enforcement actions, and addressing how AML regulations are impacting new payment products and systems
• Evaluating your current AML program and identifying gaps or weaknesses
• Implementing automated AML and fraud tools
• Incorporating data analytics into your AML compliance initiatives

Conference Concludes