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fintech

Google is threatening to kill Android phones if users do not provide personal information.

There are several versions of the threat issued by Google where its persuasion has failed.

Google is facing two problems: first, its own message demands the information and then says it will be used to the customer's detriment and secondly, people no longer trust it.

CoNet Section: 

This article is going to make a lot of people very angry. Sadly, those that are going to be angry are those that have been found out; those that should be angry - the consumers who have been misled and the tax payers who have supported the rampant charge into FinTech support by regulators and, even, the banks who have had their business models and even management plans disrupted, in the true sense of the word, by the host of millennial-targeting banks that pretended they were not banks, supported in that subterfuge by regulators - are not going to be angry.

BIScom Subsection: 

The best thing about the Gamestock story is that a short-seller tried to manipulate the market by doing deals then trying to talk down the stock. The market turned the other way, leaving the short seller out an estimated 30% of their entire funds under management.

BIScom Subsection: 

iSignthis is not an Apple device. Nor one of those iMassage services with mobile phone numbers spray painted on walls. It's an interlocking set of companies with iSignthis Limited listed on the Australian Stock Exchange (ASX) and the Frankfurt Stock Exchange. ASX and the Australian Securities and Investment Commission says it's been naughty. So what? So its customers are financial institutions buying in outsourced regulatory risk and compliance services in relation to e.g. financial crime.

Fintech, Regtech and the risks they present to your business.

Below is a media release from the Monetary Authority of Singapore that says MAS has issued an order requiring Wirecard and associated business units to forthwith cease operations and to return all funds to customers no later than 14th October 2020. The release was issued on Saturday, 30 September. The date of the Order was not published in the release.


"Need more help?" says the PayPal page. Another quality control failure....

In or about 2003, I closed our publishing company's account with PayPal because they kept blocking the account. At the time, PayPal wasn't the enormous global powerhouse that it has become. It was, essentially, a bunch of nerds for whom compliance and risk management was a nuisance. When electronic money started to exercise the US government's collective mind, PayPal found that it needed some risk management processes. They didn't do it properly. Then, later, when PayPal expanded into Europe, it migrated our account to its EU operations and put money laundering, etc. risk and compliance in Dublin where they set up systems that were not only rubbish but sent out letters referring to non-existent legislation. But now, a piece of essential third party produced software is pushing us towards at least opening, even if we don't use it, a PayPal account. How hard can it be? Surely they have learned something in...

In the past few days, the US Immigration and Customs has had the third major IT failure in two years. When you read of a "US government shut-down," this is not what one expects. It's not the only US Government department to go dark. And it carries lessons for all of those rushing to bring NewTech online before it is proven.

CoNet Section: 

Is this how malware gets onto your mobile?

One of our rarely used e-mail addresses has been miraculously spam-free. Literally, no spam at all. Until about two weeks ago. Then something weird started to happen. And there's a pattern. Given the recent attacks on mobiles via WhatsApp, one has to ask: is this recent format spam directed at mobile users? Nigel Morris-Cotterill adopts a risk-averse approach while encouraging risk awareness.

CoNet Section: 

A financial adviser has closed its "artificial intelligence" driven advisory system. The quality of advice and the supervision of the system were both causes for concern by the regulator in a landmark case about the deployment of computer-driven, what used to be called "expert", systems with implications across the entire spectrum of financial and other services including customer due diligence in relation to financial crime risk management. It's a potential game-changer for the rapid rise of lightly regulated fintechs.

BIScom Subsection: 

In a speech to a conference on the 12 March, 2019, to mark the 20th Anniversary of the Financial Stability Institute, Mr Agustin Carstens, General Manager of the Bank for International Settlements, set out what the FSI has achieved and objectives for the future.

BIScom Subsection: 

If you were going to launch a pump and dump spam-scam masquerading as legitimate share picks from a regulated stockbroker, you'd want to make sure your mail was at least opened, wouldn't you? So you'd layer one trigger word after another until you found the target's sweet spot and, all the while, you would have to avoid those pesky spam-filters. So you'd use current buzzwords so that the victim dare not ban them for fear of missing out. Want to see how it's done? PS: watch out for suspicious action on the US shares mentioned.

BIScom Subsection: 

The Hong Kong Monetary Authority, in its daily announcement timed for after everyone except Compliance has set off for Lan Kwai Fong (17:39, this one arrived), has some startling news for all those who are wetting themselves over the future of FinTech. A third of applicants for licences made such a mess of the process that the HKMA has thrown them out.

FinCEN and the Federal Banking Agencies have issued a joint statement "encouraging innovative industry approaches" to money laundering compliance. It's not long and it encourages both human and technological innovation. But, importantly, it specifically says that it does not require those who don't need it to jump into NewTech just because it's there. It also says banks are free to fail when trying new things. It also says that some NewTech might result in regulators finding out things companies might rather they didn't.

BIScom Subsection: 

Mobile payments are exploited by criminals who use services such as AliPay and WePay coupled with QR codes and while the companies behind the services are, well, behind on customer protection, The People's Bank of China, the central bank, is running ahead of regulators in other jurisdictions to find a solution. Their first idea was harsh. Their second is brutal. Can it work?

A report published by FinMark Trust (a charity funded by the UK, the UN and private organisations) seeks to explain the reasons behind the " termination of mobile money services" in South Africa and the likely effects. More positively, the report also identifies "barriers to launching effective mobile financial services (MFS) in South Africa with a specific focus on the regulatory environment required to enable such opportunities. " But, as extracts show, there might be an element of a solution looking for a problem. It all seems a little too much as if someone has decided that mobile financial services are essential. What do you think?

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