PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Misguided FinCEN AML Rule Proposal is Supported On the FRB Portal & Rails Blog Site

By Tim Sloane
March 23, 2011
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Global financial outlook symbol with globe, 3d render, white background

This is an extract of a comment I madeon the Portal & Rails Web site.

Mercator research suggests that FinCEN’s proposed rule changeswill have a significant negative impact on the prepaid market andyet I am unable to find anyone in the prepaid industry thatbelieves these proposed rules will prevent most of the crimesidentified in this blog posting:

“To help identify potential risksrelated to prepaid access devices, FinCEN formed a subcommitteewithin their Bank Secrecy Act Advisory Group (BSAAG). Thesubcommittee has identified numerous risks, such as funding withcash from stolen credit cards and virtual money cards that allowindividuals without a bank account to access illicit cash via ATMsglobally. Some high-profile criminal activities have also surfaced,exposing some of these potential risks.”
It is particularly vexing that Ana pickedthe Payoneer story as the example of “high-profile criminalactivity” since this illegal activity is explicitly not preventedby these proposed rules since payroll cards are excluded from thisFinCEN proposal.

If FinCEN were to document how these proposed rules would preventspecific criminal activities, I think it is likely the prepaidindustry could prove FinCEN wrong. More importantly, if FinCEN wereto work directly with the industry, I am positive more effectivesolutions could be identified that would cause far less disruptionto the prepaid market.

Preventing disruption is important because these prepaid productsare the best hope for providing low cost access to financialservices for the unbanked and under served. Even as the FDICdecries the lack of affordable financial services for Low &Moderate Income families, FinCEN proposes new rules that I believewill greatly increase the cost associated with delivering financialservices to that same audience -but likely with no benefit to lawenforcement.

Click here to read the entire discussion.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: DebitMerchant AcquiringMobile PaymentsPrepaidSelf Service and ConvenienceSocial Media

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    commercial card, Allpay ClearBank Prepaid Payments, wealth transfer

    How Banks Can Capture the Wealth Transfer from Boomers to Gen Z

    June 20, 2025
    embedded lending

    Embedded Lending as a Growth Strategy for ISVs—How to Maximize Revenue Potential

    June 18, 2025
    merchant ai

    Merchants Find More Use Cases for AI Amid Risks

    June 17, 2025
    prepaid payroll

    Taking the Check Out of Paycheck: The Role of Prepaid in Payroll

    June 16, 2025
    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result