Legal regulation of global electronic payment systems

International electronic payment systems provide fast and convenient financial transactions between countries, but their use is associated with many legal and regulatory issues. International consulting company Antwort Law offers a detailed overview of these aspects and provides professional assistance in setting up the processes of receiving and sending electronic payments for your company around the world.

To understand the legal challenges, let's first look at the key organizations and institutions that play an important role in this process, setting rules and standards to ensure the safety and efficiency of international payments.

International Organizations:

Bank for International Settlements (BIS): develops standards for central banks and financial institutions around the world, and its standards help ensure the stability and security of the global financial system by supporting coordination between central banks of different countries.

International Monetary Fund (IMF): plays a critical role in maintaining the stability of the international financial system and provides economic policy advice and technical assistance to countries, helping them improve financial stability and manage economic crises.

Financial Action Task Force (FATF): sets international standards to combat money laundering and terrorist financing, which help countries develop and implement laws and procedures aimed at preventing financial crime.

Among national regulators, we can note the Federal Reserve System (the US central bank), which plays a key role in regulating the country's payment systems, as well as the European Central Bank (EU), which manages the monetary policy of the eurozone and regulates payment systems in EU member states.

Now let's look at the key aspects that companies in the field of international payments should take into account in their work:

- Licensing and registration: payment system operators must obtain licenses and register with the relevant regulatory authorities. Antwort Law accompanies the process of obtaining licenses and registering payment system operators, ensuring compliance with all regulatory requirements, as well as preparing all the necessary documents and representing the company's interests in regulatory authorities.

- Capital and liquidity requirements: regulators set capital and liquidity requirements to ensure the financial stability of payment system operators. Antwort Law experts advise on compliance with these requirements and help develop and implement internal financial policies that meet regulatory requirements.

- Reporting and audit: operators are required to submit regular reports and undergo independent audits to confirm compliance with regulatory requirements. Our lawyers prepare and submit regular reports, organize independent audits to confirm compliance with regulatory requirements, and advise on accounting and reporting issues, ensuring transparency and accountability.

- Anti-money laundering (AML) is carried out based on international FATF standards, which include:

- Customer identification (KYC): procedures for collecting and verifying customer data;

- Transaction monitoring: tracking and reporting suspicious transactions;

- Cooperation with law enforcement agencies: exchanging information and facilitating investigations.

We develop procedures for collecting and verifying customer data for our clients to comply with FATF requirements, advise on suspicious transaction monitoring and reporting, helping to implement monitoring systems, and help to establish information exchange and facilitate investigations as part of the fight against money laundering.

- User data protection is based on both national and international standards such as the General Data Protection Regulation (GDPR) in the EU, which sets requirements for the collection, storage and processing of personal data.

We advise on compliance with the General Data Protection Regulation, including the collection, storage and processing of personal data, and help develop internal corporate privacy policies and ensure the rights of data subjects.

- Transaction security is based on technological measures, data encryption, multi-factor authentication as an additional level of security when accessing systems.

Our experts answer questions on the legally competent implementation of information security technologies during data transfer and multi-factor authentication systems to increase security, and also advise on the implementation of algorithms and AI to identify suspicious activities, ensuring protection against fraud.

We also help to comply with payment card data protection requirements, consult on issues PCI DSS compliance and develop measures for secure transaction processing, consult on compliance with international and national security standards.

Regulation of international electronic payment systems requires compliance with many regulatory requirements and standards. Antwort Law recommends that payment system operators and users monitor changes in legislation, implement modern data protection and transaction security measures, and provide for mechanisms for resolving cross-border disputes. Consultation with legal experts will help ensure compliance with regulatory requirements and protect the interests of all parties.

Lidia Ivanova

International lawyer
Antwort Law