Registration & Continental Breakfast

Sponsored By:

Co-Chairs’ Welcoming Remarks

CFPB Final Rule on Prepaid Accounts: What is the Impact on Compliance, Required Disclosures, and What to Expect Going Forward in the Market

• 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?
• How are prepaid card accounts different and similar to DBA? Are there too many similarities?
• What are the difference laws applied for each account?
• What are the different applications and functionality for each?

Impact of the Rule’s Reach Beyond What’s Traditionally Been Thought of as Prepaid Accounts: Prepaid Cards with Credit Features and Structuring Prepaid Cards as DDA

• 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 and why prepaid cards should be structured and offered as DDA
• 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?

Morning Break

Federal Regulatory and Enforcement Initiatives Impacting Prepaid Industry: The Latest Developments and How to Develop a Framework Given Emerging and Newer Technology

• 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
• Given that innovation will continue due to consumer demand, what kind of regulatory framework makes sense especially with newer technology?

Networking Luncheon

State Regulatory and Enforcement Efforts Including Latest Challenges Associated with Money Transmitter Licensing Enforcement

• 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

Unclaimed Property Issues: States with Varying Requirements Related to Escheat Laws

• What are the jurisdictional differences with states regarding escheat laws?
• Reporting requirements
• Audits

Break

CFPB Developments Other than The Final Rule on Prepaid Card Accounts Including Arbitration, Small Dollar Lending, and Enforcement Actions

• 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
• CFPB rule on arbitration and its effect on providers of service
  • Arbitration provisions that limit class action litigation
  • Impact on small issuers who are faced with litigation expenses
  • Class action litigation providing relief to broader group of consumers making financial institutions more accountable for their conduct
• CFPB’s rule on small dollar lending
• CFPB’s Actions against payment processors and payment companies

Compliance Programs with a Focus on Risk Assessment

• What does risk assessment really mean in the compliance and AML perspective?
• Understanding the risks associated with prepaid cards to your businesses; identifying the biggest risk; mitigating risk
  • Understanding your controls
  • Formal structure and methodology for risk assessment when dealing with new program, products, customers, location, or new channels
• Improving your compliance program

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

• 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?

Conference Adjourns to Day Two

Continental Breakfast

AML/BSA Developments: CIP Requirements, FinCEN’s CDD Rule, and More

• 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?
• Applying AML to bank-issued prepaid cards distributed through a licensed money transmitter agent
• 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
• Use of prepaid cards to fund terrorist activity or money laundering? How do you prevent such activities and how far does the FinCEN’s Prepaid Access Rule go?
• FinCEN’s CDD Rule

Compliance Challenges Surrounding Cryptocurrency, Bitcoin, and Blockchain on the Prepaid Industry

• 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

Break

International Perspective in the Prepaid Context: Product Innovation, Challenges Associated with Regulating Innovative Products, and Updates on The Fourth Anti- Money Laundering Directive and The Second EU Payment Services Directive

• 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

Negotiating and Structuring Contracts with Program Managers

• Key terms to negotiate
  • Allocate responsibility
  • Regulatory compliance
  • Indemnification
  • Monitoring

Conference Ends; Lunch for Post-Conference Workshop B Attendees and Speakers