Day 1 - Monday, September 26, 2016

Prepaid Card Compliance 101: Boot Camp for Prepaid Compliance for Program Managers, Issuing Banks, and Other Industry Players

Sep 26, 2016 7:10am – 8:20am

Speakers

Grayson J. Derrick
Partner
Baird Holm LLP

7:45
Main Conference Registration
8:20
Chair’s Welcoming Remarks
8:25
Developments with CFPB’s Rule on Prepaid Accounts: How Is It Impacting Design, Structure, and Implementation of Prepaid Card Programs?
9:50
Morning Break
10:00
Impact of the Rule’s Reach Beyond What’s Traditionally Been Thought of as Prepaid Accounts and an Examination of the Implications for Those Currently Offering and for Those Thinking about Offering Credit
11:00
Federal Regulatory and Enforcement Initiatives Impacting Prepaid Industry, Including UDAAP Enforcement Actions, and a Brief Focus on Balancing Innovation with Consumer Protection in the Era of Over-Regulation
12:30
Networking Luncheon for Speakers and Delegates
1:30
State Regulatory and Enforcement Efforts Including Latest Challenges Associated with Money Transmitter Licensing Enforcement
2:45
Other CFPB Activity; Enforcement Actions and How Does Its Enforcement Work; and a Look at the Status of the Arbitration Rule
3:55
Afternoon Break
4:05
Managing the Third-Party Servicers, Ensuring that Program Managers and Other Third-Parties Have Proper Compliance Management Systems in Place, and Helping Less Sophisticated Program Managers Develop Robust Compliance Management Systems
5:20
AML/BSA Developments: Examining Impact of the Interagency Guidance on Customer Identification Program, Enhanced Due Diligence on Consumers Using Prepaid Products, and FinCEN’s Frequently Asked Questions
6:25
Conference Adjourns to Day Two

Day 2 - Tuesday, September 27, 2016

7:30
Continental Breakfast
8:00
Impact of the Regulatory and Compliance Challenges Surrounding Cryptocurrency, Bitcoin, and Blockchain on the Prepaid Industry
9:15
Legislative Activity Involving Payroll Cards; Understanding and Complying with State Payroll Laws; and Mitigating the Threat of Class Action Litigation Involving Payroll Card Products
10:15
Morning Break
10:25
International Perspective in the Prepaid Context, Product Innovation, Challenges Associated with Regulating Innovative Products and to What Extent These Regulatory Challenges Are Causing United States to Lag Behind the Rest of the
11:40
Addressing Privacy, Data Security, and Fraud in the Prepaid Card Industry
12:45
Main Conference EndsLunch for Workshop B Participants

Day 1 - Monday, September 26, 2016

7:45
Main Conference Registration
8:20
Chair’s Welcoming Remarks

Elizabeth A. Khalil
Member
Dykema Gossett PLLC

8:25
Developments with CFPB’s Rule on Prepaid Accounts: How Is It Impacting Design, Structure, and Implementation of Prepaid Card Programs?

Brad Fauss
President and CEO
NBPCA

John Ricci
General Counsel
Green Dot Corporation

Joseph Colangelo
Executive Director
Consumers’ Research

Wanji Walcott
VP, Legal
PayPal

Obrea O. Poindexter
Partner
Morrison & Foerster LLP

Moderator:

Grayson J. Derrick
Partner
Baird Holm LLP

  • What changed from the proposal to the final?
  • What were the surprises?
  • What are the real industry pain points from compliance and business stand point?
  • What are the required disclosures that have to be changed?
  • Display/production of all terms and conditions on a website – who is required to put that up, issuer, third-parties, or everyone?
  • Will this change the products that are being offered? From the market stand point, do products remain viable?

9:50
Morning Break
10:00
Impact of the Rule’s Reach Beyond What’s Traditionally Been Thought of as Prepaid Accounts and an Examination of the Implications for Those Currently Offering and for Those Thinking about Offering Credit

Tom Scanlon
Counsel
Davis Wright Tremaine LLP

Duncan B. Douglass
Partner
Alston & Bird LLP

David L. Beam
Partner
Mayer Brown LLP

Janet Goeking
Director, Consumer Protection & Antitrust
Walmart

  • The rule defines as prepaid accounts products that aren’t necessarily thought of as belonging in that category – what are some of those products?
  • How are companies, such as PayPal, which didn’t realize were offering prepaid accounts before the proposed rule came out coping with the requirements under the final rule?
  • What are the implications for providers who currently offer overdraft?; What’s the difference between overdraft that providers have been offering and credit they are required to offer?
  • What do issuers that currently offer credit need to do to get into compliance?
  • What do providers who are thinking about offering credit need to do?
  • Will companies be abandoning prepaid cards with credit features?
  • Recent federal regulatory and enforcement activities
  • What are regulators focusing on currently?
  • The latest legislative developments in Washington
  • Best practices for working with regulators to determine how best to meet compliance obligations
  • A practical, how-to guide for preparing for examinations by different regulatory agencies: CFPB, FinCEN, FDIC, etc.
  • Regulatory focus on bank oversight of program managers
  • Best practices for supervisory oversight of prepaid programs
  • UDAP enforcement actions
    • What have UDAP enforcement actions looked like?
    • How can businesses not run afoul of UDAP laws?
  • Given that innovation will continue due to consumer demand, what kind of regulatory framework makes sense especially with newer technology?
    • Given the way regulations are written today, how do emerging technologies fit within that framework? Are these frameworks still appropriate or should they be updated in order to meet customer demand?

11:00
Federal Regulatory and Enforcement Initiatives Impacting Prepaid Industry, Including UDAAP Enforcement Actions, and a Brief Focus on Balancing Innovation with Consumer Protection in the Era of Over-Regulation

Janis Frenchak
Assistant Vice President of Consumer Compliance
Federal Reserve Bank of Chicago

Michael P. Grady
Trial Attorney, Asset Forfeiture and Money Laundering Section
U.S. Department of Justice

Frank Boudra
Compliance Officer, Sanctions Compliance and Evaluation Division
Office of Foreign Assets Control US Department of the Treasury

Ryan J. Straus
Counsel
Fenwick & West LLP

Moderator:

Jason Oxman
Chief Executive Officer
The Electronic Transactions Association (ETA)

  • Recent federal regulatory and enforcement activities
  • What are regulators focusing on currently?
  • The latest legislative developments in Washington
  • Best practices for working with regulators to determine how best to meet compliance obligations
  • A practical, how-to guide for preparing for examinations by different regulatory agencies: CFPB, FinCEN, FDIC, etc.
  • Regulatory focus on bank oversight of program managers
  • Best practices for supervisory oversight of prepaid programs
  • UDAP enforcement actions
    • What have UDAAP enforcement actions looked like?
    • How can businesses not run afoul of UDAAP laws?
  • Given that innovation will continue due to consumer demand, what kind of regulatory framework makes sense especially with newer technology?
    • Given the way regulations are written today, how do emerging technologies fit within that framework? Are these frameworks still appropriate or should they be updated in order to meet customer demand?

12:30
Networking Luncheon for Speakers and Delegates
1:30
State Regulatory and Enforcement Efforts Including Latest Challenges Associated with Money Transmitter Licensing Enforcement

Donald J. Mosher
Partner
Schulte Roth & Zabel LLP

Tom James
Senior Assistant Attorney General Consumer Counsel – Consumer Fraud Bureau
Office of the Illinois Attorney General

Ted Teruo Kitada
Senior Vice President and Senior Company Counsel
Wells Fargo Bank

  • What is required in order to sell or issue prepaid products?
  • What types of business are covered?; Scope of coverage
  • Regulators’ expectations for licensees
  • Developing the strategy and laying out the roadmap that payment processors should be exempted from money licensing in different jurisdictions
  • What kind of exemptions are states looking for?
  • What are the latest challenges associated with state money transmitter licensing enforcement?
  • Money transmitter laws and their impact on product distribution considerations
  • Issues surrounding authorized delegates

2:45
Other CFPB Activity; Enforcement Actions and How Does Its Enforcement Work; and a Look at the Status of the Arbitration Rule

Kim Ford
Vice President of Global Government & Public Affairs
First Data

Genessa Stout
Director of Litigation
PayPal

John Hagy
Chief Legal Officer
MetaBank

Karen L. Garrett
Partner
Stinson Leonard Street LLP

  • Assessing recent CFPB enforcement trends, activities, and priorities and what they mean for the prepaid industry
  • How does CFPB enforcement work?
  • How does CFPB work with other regulatory bodies and enforcement agencies?
  • CFPB consumer complaint database
  • Status of the arbitration rule and assessing the CFPB’s positon on arbitration clauses and what it means for the industry

3:55
Afternoon Break
4:05
Managing the Third-Party Servicers, Ensuring that Program Managers and Other Third-Parties Have Proper Compliance Management Systems in Place, and Helping Less Sophisticated Program Managers Develop Robust Compliance Management Systems

Brett Kitt
Of Counsel
Greenberg Traurig, LLP

James Sanft
Assistant General Counsel
The Bancorp, Inc.

Ronald K. Vaske
Partner
Lindquist & Vennum LLP

David Prochnow
General Manager Prepaid Services
MB Financial Bank NA

  • What are the best practices for managing third-party servicers?
  • What is expected of third-party servicers?
  • A bank’s responsibility of entering into well-constructed, enforceable contracts with third-party program managers
  • What about companies such as new fintech companies and other smaller companies who rely on issuing banks for compliance management systems?
  • How can issuing banks ensure that less sophisticated program managers have the tools they need to understand the regulatory environment and build internal controls?

5:20
AML/BSA Developments: Examining Impact of the Interagency Guidance on Customer Identification Program, Enhanced Due Diligence on Consumers Using Prepaid Products, and FinCEN’s Frequently Asked Questions

Dan Kim
Assistant General Counsel Global Financial Crimes Legal
JPMorgan Chase & Co.

Pawneet Abramowski
SVP, Director AML & Sanctions Risk Management
The Bancorp

Deborah S. Thoren-Peden
Partner
Pillsbury Winthrop Shaw Pittman LLP

Howard R. Fields
SVP/Group Head – AML, Trade Sanctions and Export Controls Compliance Counsel
MasterCard

  • Interagency guidance to issuing banks on applying customer identification program requirements to holders of prepaid cards
    • Clarification of existing CIP requirements with respect to the issuance of certain prepaid cards
    • Determining whether an Account is created and identifying the Customer
    • In cases where it is not clear how to proceed, to what extent can a bank look to other rules for program managers and how may that be viewed?
  • CDD proposal
  • What are some red flags and signs that additional scrutiny needs to be given?
  • FinCEN’s frequently asked questions relating to the Prepaid Access Final Rule

6:25
Conference Adjourns to Day Two

Day 2 - Tuesday, September 27, 2016

7:30
Continental Breakfast
8:00
Impact of the Regulatory and Compliance Challenges Surrounding Cryptocurrency, Bitcoin, and Blockchain on the Prepaid Industry

Genessa Stout
Director of Litigation
PayPal

Robert Schwentker
Founding President
Blockchain University

J.H. Jennifer Lee
Partner
Dorsey & Whitney LLP (former Enforcement Attorney in the CFPB’s Field Litigation Team)

Tim Rocho
Founder-CEO
Set for Life Financial, LLC.

  • What are the barriers to having this technology infused with prepaid cards from a compliance perspective?
  • What is the current regulatory landscape affecting virtual currency provider?
    • Which laws virtual currency providers need to worry about and what is coming down the line?
  • What are the unique issues associated with setting up a prepaid account that accesses funds in a bitcoin wallet?
    • Shift card

9:15
Legislative Activity Involving Payroll Cards; Understanding and Complying with State Payroll Laws; and Mitigating the Threat of Class Action Litigation Involving Payroll Card Products

Keith J. Barnett
Partner
Troutman Sanders LLP

Pam Lindula
Senior Counsel, Banking, Operations Commerce & Global Risk
Wells Fargo

Patrick M. Burnett
Vice President & Corporate Counsel
Comdata

  • Will other states follow suit of those with more aggressive criteria for wages being deposited to a prepaid card?
  • Will the more aggressive legislation regarding payroll cards cut this type of a prepaid card out of the market?
  • Are there ways of mitigating the threat of class action litigation over payroll products?
    • What steps can an issuer take to better oversee programs offered by employers in order to mitigate litigation risk? Are there ways to mitigate risk of litigation from a due diligence as well as from a contractual perspective?

10:15
Morning Break
10:25
International Perspective in the Prepaid Context, Product Innovation, Challenges Associated with Regulating Innovative Products and to What Extent These Regulatory Challenges Are Causing United States to Lag Behind the Rest of the

Judith Rinearson
Partner
K&L Gates

Peter Luce
Principal
Ouroboros LLP

Jacqueline Shinfield
Partner, Financial Services
Blake, Cassels & Graydon LLP

World in Terms of Payment Innovation?

  • An overview of key regulatory developments around the world
  • International synergies or lack thereof – what can be learned from the international community?
  • Expansion of U.S. programs into Europe
  • U.K.’s more favorable money transmitter licensing
  • Recent developments and trends in Canada
  • Challenges associated with regulating innovative products; Suggested strategies for overcoming those challenges
  • Negative impact of today’s U.S. regulatory regime on innovation and its causing developers to be more active overseas where they are invited
  • Striking a proper balance between regulation and innovation so that the U.S. isn’t left behind – suggestions as to what can be done?

11:40
Addressing Privacy, Data Security, and Fraud in the Prepaid Card Industry

Kevin D. Leitão
Of Counsel
Ballard Spahr LLP

Elizabeth A. Khalil
Member
Dykema Gossett PLLC

  • When collecting customer information, how and where is it stored?
  • What security measures need to be in place to protect customer information?
  • What do regulators expect companies in the prepaid card industry to do when collecting customer information? What should a privacy and data security compliance regime in the prepaid card context look like?
  • CFPB emerging as another “enforcer” in the cybersecurity arena
  • What types of fraud is the industry encountering and how is it dealing with them?

12:45
Main Conference EndsLunch for Workshop B Participants