Qwist’s Post

The European Council will require PSPs to provide SEPA Instant Credits to customers around the end of 2024. Fraud expert Freddy Arthur discusses the proposed changes in instant payments and their impact on financial institutions in the region in this blog: https://okt.to/4b3Y5D #FraudPrevention #InstantPayments #EuropeanCouncil

The European Council will require PSPs to provide SEPA Instant Credits to customers around the end of 2024. Fraud expert Freddy Arthur discusses the proposed changes in instant payments and their impact on financial institutions in the region in this blog: https://okt.to/gQSxlC #FraudPrevention #InstantPayments #EuropeanCouncil

This is serious. I hope #RBI imposes exemplery penalty that will make the whole industry pull up their game. Going by the article, it appears that there has been a shoddiness followed in application testing process. And also it opens up questions about the lack of Zero Trust regimen that is truly required to be followed in such critical sectors as banking. Alas, it seems we only learn when something like this happens. I hope we will learn. Right? Will soon be publishing some research on Zero Trust Network Access ... if you care to read up. Will share link, once it publishes.

🎉 There is a smallish (?) group of in-house bank and outside counsel #AML lawyers who are excited by the following announcement. ❗ There is an even bigger group at FinTechs and #banking as a service (#BaaS) platforms who are even more excited. (Also, let's not forget the #buynowpaylater's.) ❓ The "big deal"? - #FinCEN announced today that it is requesting information relating to whether banks may obtain partial social security numbers or taxpayer ID numbers to comply with their customer identification program requirements (CIP). Link to the RFI in the post below. 🔢 So perhaps there is a possibility that a #bank would obtain the last 4 digits of a potential customer's SSN, and obtain the remaining five digits from a third-party source, such as a #creditbureau, and still be compliant. 😠 Currently, #banks have to collect the entire SSN or TIN from the customer before allowing a customer to open a bank account. Also, a BaaS, #FinTech, or BNPL requesting a full SSN to comply with this rule creates user friction. 📠 But that full SSN requirement was established way back in 2003 -- before iPhones, Venmo, and Bitcoin -- and FinCEN explicitly recognized in its RFI that banks and financial institutions "partner with non-bank financial institutions," for financial services, including "buy-now-pay-later (BNPL) loans." Tip of the hat to FinCEN for recognizing how much has changed over the past 20 years. 💵 FinCEN's request is in consultation with the Fed, #OCC, #NCUA, and #FDIC. (So lots of interagency thinking and wordsmithing on the request for information.) 🔏 And there are a lot of questions specifically aimed at "non-banks," including how they verify accuracy of the SSN, how they monitor third-party information providers, and how they will ensure #privacy and #security of the customer's data. ⏰ Comments are due by May 27, 2024. Please reach out if you have questions. Carlton Greene, Nicole Sayegh Succar, Caroline Brown #antimoneylaundering #bnpl #knowyourcustomer #CIP #federalreserve

Overwhelming support for Euro money transfers within 10 SECONDS! Last Wednesday, 7th of February 2024, Members of the European Parliament adopted new rules to ensure transferred funds arrive immediately into the bank accounts of retail customers and businesses across the EU SEPA. This includes a focus on credit transfers, which involve transferring money from one bank account to another. The new regulation aims to make sure that retail clients and businesses, especially SMEs, will not have to wait for their money, as well as to enhance the safety of transfers. Banks and other payment service providers (PSPs) will have to ensure credit transfers are affordable and immediately processed. The resounding endorsement demonstrates a strong consensus: 👍 599 votes in favour 🤷♂️ 35 abstentions 👎 7 votes against ᴡʜᴀᴛ ᴅᴏᴇꜱ ɪᴛ ᴍᴇᴀɴ... ...in practical terms for banks and PSPs?❗ 𝟭. 𝗦𝘆𝘀𝘁𝗲𝗺 𝘂𝗽𝗱𝗮𝘁𝗲𝘀: Players will need to revamp their payment systems to ensure that credit transfers happen almost instantly, within a mere ten seconds, capped at 100K EUR. This calls for significant changes to their technology infrastructure to enable faster transaction processing. 𝟮. 𝗠𝗼𝗿𝗲 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 & 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆: Stricter security protocols are on the horizon to combat fraud and errors during these lightning-fast credit transfers. Banks and service providers must implement robust fraud detection and prevention measures, alongside offering identity verification services to safeguard against illegitimate transactions. 𝟯. 𝗔𝗱𝗷𝘂𝘀𝘁𝗶𝗻𝗴 𝗳𝗲𝗲𝘀: To ensure fairness, banks and payment service providers are prohibited from levying additional charges for instant credit transfers. This requires a thorough review and potential adjustment of fee structures to align with the new regulations. 𝟰. 𝗖𝗹𝗶𝗲𝗻𝘁 𝗶𝗻𝘁𝗲𝗿𝗮𝗰𝘁𝗶𝗼𝗻: Real-time communication becomes crucial as banks and payment service providers are mandated to promptly inform customers, within ten seconds, of the success of their transferred funds reaching the intended recipient. Despite the new regulations coming into effect soon, banks and payment service providers are granted 𝘢 𝘵𝘳𝘢𝘯𝘴𝘪𝘵𝘪𝘰𝘯 𝘱𝘦𝘳𝘪𝘰𝘥 𝘵𝘰 𝘢𝘥𝘢𝘱𝘵: 𝟵 𝘮𝘰𝘯𝘵𝘩𝘴 𝘵𝘰 𝘨𝘦𝘢𝘳 𝘶𝘱 𝘧𝘰𝘳 𝘳𝘦𝘤𝘦𝘪𝘷𝘪𝘯𝘨 𝘪𝘯𝘴𝘵𝘢𝘯𝘵 𝘤𝘳𝘦𝘥𝘪𝘵 𝘵𝘳𝘢𝘯𝘴𝘧𝘦𝘳𝘴, 𝘢𝘯𝘥 𝟭𝟴 𝘮𝘰𝘯𝘵𝘩𝘴 𝘵𝘰 𝘴𝘦𝘯𝘥 𝘵𝘩𝘦𝘮. During this period, banks and payment service providers are expected to undergo system updates, staff training, and compliance checks to ensure seamless integration. This monumental shift demands substantial investments in technology, training, and compliance measures. However, it promises (indeed) to revolutionize the banking landscape. WHAT ARE YOUR THOUGHTS ON IT? #innovation #technology #future

⚡ The rise of instant payments globally marks a revolution in how we transact, offering unparalleled convenience and speed. However, this innovation comes with its set of challenges, particularly in the realm of fraud prevention. 🕵️♂️ 🇬🇧 In the UK where instant payments accounted for 40% of all AtoA in Q4 2023, Authorized Push Payment (APP) fraud has surged, highlighting an urgent need for robust verification mechanisms. In response, the UK has taken a significant leap forward with the rollout of the Confirmation of Payee (CoP) to Payment Service Providers (PSPs) scheduled for October this year. This initiative is a game-changer, aiming to drastically reduce instances of fraud by ensuring that payments are sent to the intended recipient. 🌍 In contrast, the Single Euro Payments Area (SEPA) has been somewhat lagging, primarily due to the absence of a centralized infrastructure to support similar measures. This gap underscores the complexity and necessity of establishing region-wide standards and protocols to combat fraud effectively. 🔍 Excitingly, there's a light at the end of the tunnel. EBA CLEARING is set to launch its Verification of Payee service in December, a monumental step towards safeguarding SEPA transactions from fraud. This initiative represents a pivotal advancement in creating a safer, more secure financial ecosystem which we embrace at Numeral. 🔗 Full details to the announcement in the link of the post.

➡️ Introducing a New Service: Preventing Transactions with Merchants involved in Mule Activity!🚨 Tietoevry Banking’s Financial Crime Prevention (FCP) unit has launched a cutting-edge service that blocks 🚫 card transactions to suspicious merchant locations. To ensure this, when banks across the industry report any suspicious merchant locations they encounter, FCP analyzes and updates the filters used by subscribing banks 🏦 Read more about the new service here: https://bit.ly/4ae16QZ #FinancialCrimePrevention #MuleActivity #TietoevryBanking

The European Council will require PSPs to provide SEPA Instant Credits to customers around the end of 2024. Fraud expert Freddy Arthur discusses the proposed changes in instant payments and impact on financial institutions in the region in this blog: https://okt.to/zDkLHP #EuropeanCouncil #EU #SEPA #PSP #FraudPrevention #InstantPayments

This is why I sold all the Mastercard shares today in the portfolio. For quite a few use cases, Mastercard credit cards and Paypal will become obsolete. The European Parliament has adopted a new set of rules to ensure that transferred funds arrive immediately in bank accounts across the EU. The objective of the new regulation is to eliminate delays in fund transfers for retail clients and businesses, particularly small and medium-sized enterprises (SMEs), and to improve the security of transactions. Under the agreed-upon text with EU member states, banks and other payment service providers (PSPs) will be obligated to ensure that credit transfers are both affordable and promptly processed, thereby updating the existing Single Euro Payments Area (SEPA) rules. Instant credit transfer, as outlined in the regulation, mandates that transfers occur promptly irrespective of the time or day, with funds arriving in the recipient's account within ten seconds. Additionally, payers must receive confirmation within the same timeframe regarding the availability of the transferred funds to the intended recipient. Non-euro currency member states are also required to adhere to the rules if their accounts facilitate regular euro transactions, albeit with a longer transition period. A temporary exemption from the ten-second payment requirement will be granted for accounts outside of business hours due to potential concerns about euro liquidity access. To ensure customer safety, PSPs are mandated to implement robust fraud detection and prevention measures, preventing misdirected credit transfers due to fraud or errors. PSPs operating within the EU must provide identity verification services immediately and without additional charges. Additionally, clients are empowered to set maximum amounts for instant credit transfers in euros to mitigate fraud risks.

CODE RED 🚨 - Check Fraud is on the Rise. Find out how RembrandtAi® is using real-time fraud detection to combat this crisis in our latest article. https://lnkd.in/ecMGmBRM #CheckFraud #Innovation #RembrandtAi #FinancialSecurity #fintech #creditunion #banking #bankingtech