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Data for today’s episode is provided by Mercator Advisory Group’s report – No Holiday for the Regulator During the Pandemic
Regulatory Updates: ISO20022 & California Consumer Privacy Act
- ISO20022 will affect any institutions doing wire transfers— the vast majority of the value transfer in the US by gross dollar volume.
- Wires are used for the following: bank reserves, Fed funds, repurchase agreements, trading account obligations, corporate client deposits, liquidity & payroll.
- According to one report, there were fully 27 impact areas affected in banking, payments and architecture and 10 operational departments involved in an ISO20022 migration.
- The California Consumer Privacy Act has three criteria:
- 1) The business earns $25 million in annual revenue.
- 2) The business obtains personal information of 50,000 or more California residents, households, or devices annually.
- The business derives 50% or more of its annual revenue from selling California residents’ personal information.
- The intention of the Act is to inform residents of whether data is being collected, sold, or accessed and allow them to decline the sale, delete personal info, and prevent discrimination.
In the midst of COVID-19, corporate banks must still deal with regulations as a fact of life. Market realities co-exist with compliance requirements as they are often indistinguishable, such as in the case of open banking.
In this Viewpoint, No Holiday for the Regulator During the Pandemic, Mercator Advisory Group provides an update on some of the more high profile regulatory conditions across the globe that relate to corporate banking and payments. Financial services institutions are in the most highly scrutinized of industries, given their role as global liquidity providers and their responsibility to keep the financial system safe and sound.