The quest for standardization among state regulations faced by many payment facilitators and fintech companies continues its slow but steady momentum forward.
As previously reported, the Conference of State Bank Supervisors (CSBS) has been in the process of paving the way for a more streamlined approach to compliance with varying state requirements, including expanding the use of the Nationwide Multistate Licensing System to nonbank entities supervised at the state level. And this has been just as complicated as it sounds.
Most recently though, the CSBS has launched new fintech tools to enable a more manageable navigation process when it comes to promoting compliance and protecting customer data, including a portal, interactive map and updated resource center, according to the press release.
The portal is designed to assist nonbanks with regulatory compliance while the interactive map targets the agent-of-the-payee exemptions and identifies states that “do not require a money transmitter license for receiving a payment on behalf of a third party,” including a state-by-state summary of exemption requirements. These first two are based on previous recommendations made earlier this year by the agency’s Fintech Industry Advisory Panel, according to the same release.
And finally, the cybersecurity 101 resource center is a comprehensive resource dedicated to helping financial institutions develop their own cybersecurity programs and protocols.
“As financial services develop technology to provide innovative products, state regulators are bringing new tools online to help industry ensure compliance and protect consumer data,” explained CSBS President and CEO John Ryan.
When it announced its Vision 2020 initiative, the CSBS also said it plans to develop what it called a “50-state model MSB law.” This would create some uniformity around definitions and procedures for money services businesses (MSB) licensure.