1 8 May 2007

News:

Minnesota has become the first US state to enact a law which includes Payment Card Industry (PCI) standards in privacy and data security practices.

The European Commission's Eva King, Policy Officer Payment Services, will provide the keynote address at E-Finance & Payments Law & Policy's Payment Services Directive Intensive, hosted at the London offices of international law firm Sidley Austin (UK) LLP on 27 June.

New compliance reporting provisions for banks, providers of financial services, gambling companies and business that provide 'designated services' under Australia's Anti-Money Laundering and CounterTerrorism Financing Act 2006 (AML/CTF Act) came into effect on 12 June.

Features:

The move towards a 'cashless society' will create new and innovative ways for us to manage our money electronically, however these new methods have implications for those with little or no financial tools at their disposal. Nicola O' Reilly, Senior Policy Advocate at the National Consumer Council, raises some issues surrounding these new services.

The US Departments of Treasury, Justice and Homeland Security, working with twelve Federal regulatory and law enforcement agencies, have just issued the 2007 National Money Laundering Strategy which sets out the areas the US government wishes to target to further combat money laundering. In this article, Agnes Bundy Scanlan, Counsel at Goodwin Procter LLP, sets out the Strategy's goals.

PayPal Europe recently decided to relinquish its status as an Electronic Money Issuer to become a bank, despite having no current plans to expand its activities beyond the issuance of electronic money. Robert Caplehorn, PayPal Europe's legal and compliance director, explains the rationale behind the move.

Two US banking agencies have issued guidance to help companies with legal compliance when issuing gift cards. Joel D. Feinberg and Amber M. D'Alessio, of Sidley Austin LLP, Washington, highlight how the guidance provides useful advice to gift card operators about ensuring adequate disclosures to consumers regarding the terms and conditions of gift card programmes.

The French banking regulator has adopted a conservative analysis of pre-paid products, going against the European trend of liberalisation signalled by SEPA and the PSD. Benjamin May and Lise Breteau, of Aramis Société d'Avocats, argue that this highlights France's intention to protect its banking monopoly.

The entry of nonbanks into the Dutch retail payments system has enhanced competition and cost efficiency. Nicole Jonker and Philip Klopper, of De Nederlandsche Bank, explain the challenges for public authorities in regulating these new market players without removing the efficiencies that they bring to the retail payments sector.