Saltar al contenido
The International Money Transfer & Payments Conferences are part of The Platinum Network. Become a Member!
  • enEnglish
  • esEspañol
  • pt-brPortuguês
Linkedin page opens in new windowYouTube page opens in new windowTwitter page opens in new windowFacebook page opens in new windowInstagram page opens in new window
IMTC
International Money Transfer Conferences
IMTCIMTC
  • Nosotros
    • Sobre Nosotros
    • Consejo Asesor
    • Who comes to IMTC?
    • Asociaciones de la Industria
    • WOMEN IN THE MONEY TRANSFER INDUSTRY AWARDS
    • DÍA INTERNACIONAL DE LAS REMESAS FAMILIARES
    • FAQ
  • Conferencias
    • Conferencias
      • IMTC LATAM 2021
      • IMTC EMEA 2021
      • IMTC ASIA 2021
      • IMTC WORLD 2021
    • Forums
      • IMTC Forum San Juan 2021
      • IMTC Forum Mexico 2021
      • IMTC Forum Madrid 2021
    • Conferencias Anteriores
      • IMTC WORLD
        • IMTC WORLD 2020
        • IMTC WORLD 2019
        • IMTC WORLD 2018
      • IMTC LATAM
        • IMTC LATAM 2019
        • IMTC LATAM 2017
        • IMTC CUBA 2016
      • IMTC EMEA
        • IMTC EMEA 2019
        • IMTC EMEA 2018
        • IMTC EMEA 2017
      • IMTC BRASIL
        • IMTC BRASIL 2018
        • IMTC BRASIL 2016
      • IMTC AFRICA
        • IMTC AFRICA 2019
        • IMTC AFRICA 2017
      • IMTC ASIA
        • IMTC ASIA 2018
        • IMTC ASIA 2016
      • REMTECH AWARDS
        • REMTECH 2020
        • REMTECH AWARDS 2019
    • Oradores Anteriores
    • Participantes Anteriores
  • Cursos
  • Hazte Miembro
  • Blog
  • Contáctanos
Buscar:
  • Nosotros
    • Sobre Nosotros
    • Consejo Asesor
    • Who comes to IMTC?
    • Asociaciones de la Industria
    • WOMEN IN THE MONEY TRANSFER INDUSTRY AWARDS
    • DÍA INTERNACIONAL DE LAS REMESAS FAMILIARES
    • FAQ
  • Conferencias
    • Conferencias
      • IMTC LATAM 2021
      • IMTC EMEA 2021
      • IMTC ASIA 2021
      • IMTC WORLD 2021
    • Forums
      • IMTC Forum San Juan 2021
      • IMTC Forum Mexico 2021
      • IMTC Forum Madrid 2021
    • Conferencias Anteriores
      • IMTC WORLD
        • IMTC WORLD 2020
        • IMTC WORLD 2019
        • IMTC WORLD 2018
      • IMTC LATAM
        • IMTC LATAM 2019
        • IMTC LATAM 2017
        • IMTC CUBA 2016
      • IMTC EMEA
        • IMTC EMEA 2019
        • IMTC EMEA 2018
        • IMTC EMEA 2017
      • IMTC BRASIL
        • IMTC BRASIL 2018
        • IMTC BRASIL 2016
      • IMTC AFRICA
        • IMTC AFRICA 2019
        • IMTC AFRICA 2017
      • IMTC ASIA
        • IMTC ASIA 2018
        • IMTC ASIA 2016
      • REMTECH AWARDS
        • REMTECH 2020
        • REMTECH AWARDS 2019
    • Oradores Anteriores
    • Participantes Anteriores
  • Cursos
  • Hazte Miembro
  • Blog
  • Contáctanos
Ene242015
Compliance & Regulation

DEVELOPING PARTNERSHIPS WITH US LICENSED MONEY TRANSMITTERS

Inspired by Judie Rinearson’s article Surprise: State Licensing Laws Could Help Payments Innovation – http://bit.ly/1yd0FLW

We all know that technology and the creativity surrounding the tech revolution is inspiring a vast number of payment innovations. Online financial services, mobile payments, eWallets, bitcoin & the virtual currencies explosion, smarter ATMs, tools such as contactless chips, beacons, geo-location, are seeking to make payments more inclusive, easier to use, to track and to market, safer, faster, more efficient, more tailored to every user, etc.

But where moving money is concerned there are always a number of issues that are continuously haunting the payments world, from the use of its methods, protocols, networks and tools for illegal activities to the possibility of scams and fraud. For a number of innovators all the regulatory and compliance supervisory schemes developed by government systems in the world are mostly obsolete, designed for a world that is not the one we live in now. When I meet with these innovators I explain that most of us, the entrepreneurs of the existing non-bank financial companies, have always been very frustrated with the system. And that is true in most countries in the world. I do understand that the problem is extremely complex: the state control of money mentality, the need for democratization of payments and financial inclusion, the consumer protection ideals, the regulator mistrust mindset, the bank-government balancing act and the politics that surrounds it – aggravated by their role in the past economic crisis.

Amidst all of this, I insist that for innovation to keep on pushing boundaries we all need to be more open and creative. The traditional companies need to make changes, evolve, plan, invest, partner. The regulators need to think outside of the box. Innovators must make an effort to understand why we are where we are and think that maybe they can’t do it alone. In the United States, because of the state licensing laws, you need to obtain different licenses in 48 states which is an immense burden. That is unreal for most payment professionals in other parts of the world.

But when I read Judie Rinearson’s article in the American Banker “Surprise: State Licensing Laws Could Help Payments Innovation”, I was immediately inspired. There it was, the leader of at Bryan Cave’s prepaid and emerging payments team expressing very clearly: “How can smart, talented entrepreneurs possibly develop and launch innovative new payment programs and still remain compliant in this environment? This issue is particularly critical [in the US] because of the opportunities presented by cryptocurrencies and the block-chain structure that has the potential to revolutionize payments globally.”

I could quote the whole article but it is important that you click this link, http://bit.ly/1yd0FLW, and read it yourself even if you are not US based. If you are a payments innovator or a MTO in any place in the world, thinking that you should avoid the US Market because of its complexity, this article is also for you.

Judie will be presenting her views on this subject at IMTC USA 2015 in Las Vegas in March; see the latest agenda update here. Judie adds: “Most importantly, establishing an authorized delegate relationship between an innovative new payments company and a licensed money transmitter can create a «win-win-win-win» situation that benefits everyone. The consumers’ funds are fully protected. The startup company can safely pursue its product development efforts, furthering payments innovation.” I think everybody agrees with the benefits, but many do not see any willingness of State Regulators to allow this or being open to consider innovative agreements. And that makes licensees weary and prevents them from even consider proposals. Or they are pricing themselves too high.

Recently, Judie testified at the January 2014 Virtual Currency Hearings before the New York State Department of Financial Services regarding regulation of virtual and crypto currencies. This hearing was widely followed and is available for viewing online: http://www.youtube.com/watch?v=4OEJiWhCOEk. You can also read the PDF version here: http://on.ny.gov/1wuCxE0 . Will traditional Licensees consider AD agreements with virtual currency money transmitters in the US?

The following two tabs change content below.
  • Bio
  • Latest Posts
Avatar
My Twitter profileMy LinkedIn profileMy YouTube channel

Hugo Cuevas-Mohr

Director at Platinum Network - Mohr World Consulting
Hugo is a writer, a conference speaker, an event producer, an inquisitive panel moderator and an opinionated consultant in cross-border services industries and a mentor with vast experience, who speaks English, Spanish, French and who loves to run, bike, swim... and walk over long distances.
Avatar
My Twitter profileMy LinkedIn profileMy YouTube channel

Latest posts by Hugo Cuevas-Mohr (see all)

  • 2020: The year that was - enero 25, 2021
  • Coming together: Innovation, Disruption & Remittances - junio 15, 2020
  • Love & Death: Agents vs. Digital - mayo 25, 2020
Categoría: Compliance & RegulationPor Hugo Cuevas-Mohrenero 24, 2015
Share this post
Share on FacebookShare on Facebook TweetShare on Twitter

Navegación entre publicaciones

AnteriorPublicación anterior:US TREASURY ROUNDTABLE ON FINANCIAL ACCESS FOR MONEY SERVICE BUSINESSESSiguientePublicación siguiente:DE-RISKING: THE MOVING TARGET

Related Posts

Customer Expectations In The Payments Industry
enero 24, 2015
A new decade for us
enero 24, 2015
laBITconf 2019 en su séptima Edición
enero 24, 2015
Risk Management in US MSB Institutions
enero 24, 2015
Digital vs. Cash, are we getting it all wrong?
enero 24, 2015
MSBA Names New Chairman and Board
enero 24, 2015
Are you a PNET Member?

If you have not joined our industry community yet, go to PNET and sign up. You can get membership perks and discounts for IMTC conferences!

Keep on Learning!
Check our online courses:

MTTC Money Transfer Compliance Certication Course. Check the version in English &  la versión en Español.
Watch video presentation of our courses here.