What follows is a bit of an experimental post where we curate five items appearing in fintech-related media and assess the potential legal/regulatory hurdles. We are “borrowing” the concept from the Sinocism China newsletter and the WSJ Risk and Compliance Morning Risk Report, so let us know if you like it–maybe we’ll make it a weekly thing.
Ant Financial Buying MoneyGram (WSJ)
In the WSJ piece, Demos and Carew note that, “[b]efore the deal closes, it will need to seek approval from the Committee on Foreign Investment in the U.S., a secretive multi-agency panel that reviews foreign acquisitions of U.S. assets for national security threats.” As I’ve written before, CFIUS approval is not a rubber stamp.
FINRA Seeks Comment on Distributed Ledger Technologies (FINRA)
As we reported earlier, FINRA is seeking comment on the use of blockchain-based technologies in the securities industry. FINRA’s efforts parallel at least in part the efforts of the Securities and Exchange Commission with respect to the use of distributed ledgers for clearing and settlement. The degree of coordination between the two efforts, as well as the companies trying to stake out a position in the area, could be jeopardized by the shifting policy priorities of Trump’s pick to lead the SEC.
China’s Central Bank Tested a Digital Currency System (Caixin)
Consider for a moment the use of blockchain technologies to verify money transfers in a country that prizes the ability to track the moves of its citizenry.
London takes top spot in RegTech deals: FinTech Global (EconoTimes)
EconoTimes is crediting the creation of a regulatory sandbox by the UK’s Financial Conduct Authority as providing the impetus for continued growth for FinTech deals in the UK. Whether the trend will continue as Brexit pans out remains anyone’s guess.
Laundering-as-a-Service (A Bank USP) (Chris Skinner)
Mr. Skinner registers surprise regarding the quality of anti-money laundering compliance programs of large financial institutions. But in a month punctuated by the Western Union settlement and the Anthony Murgio plea deal, can you really point the finger at the institutions or the folks that regulate them moving the goal posts?
Blockchain: accelerated activity in trade finance (Carlo R.W. De Meijer)
As Mr. De Meijer reports, blockchain is moving beyond core public markets and into trade finance. Consider, for a moment, how the major players will use AI and blockchain to catch and report upon trade-based money laundering?
FinTechLaw.IO 