Latest Payments News: Financial Technology Association Gets Go Ahead To Defend US CFPB Open Banking Rule, and more

Catch up on some of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

Financial Technology Association Gets Go Ahead To Defend US CFPB Open Banking Rule

The US district court in Lexington, Kentucky, granted permission on Wednesday (May 14) to the Washington-based FTA to intervene in the case.

The plaintiffs in the case, Forcht Bank, the Kentucky Bankers Association, and the Bank Policy Institute, object to the CFPB’s rulemaking on consumers’ financial data rights under the Dodd-Frank Act.

In the lawsuit, they claim that the CFPB overstepped its statutory authority and finalised a rule that jeopardises consumers’ privacy, financial data and account security.

In particular, the plaintiffs challenge the CFPB’s interpretation of the term “consumer” and restrictions on banks charging access fees.

They contend that the rule allows unsafe practices such as screen scraping to continue and increases the likelihood of fraud and scams by failing to require oversight or supervision of fintechs or their data security practices, while also limiting banks’ ability to cut off bad actors from their systems.

In addition, they say it also fails to hold fintechs accountable when things go wrong, leaving customers with little to no recourse in the event of a breach.

However, the FTA insists the rule does the opposite, and also drives up competition and standards.

The CFPB had announced that it planned to ask the court to vacate the rule, which is why the FTA is stepping in to defend it.

In a statement, Penny Lee, president and CEO of the FTA, welcomed the court’s decision to allow the lawsuit intervention.

Lee said: “This is a critical step in defending the right of every American to access and securely share their financial data — and in ensuring that innovation, competition and consumer choice remain at the heart of the U.S. financial system.”

She added: “We look forward to continuing to advocate for a fair and competitive financial ecosystem that works for everyone.”

Netherlands AML Reboot Aims To Tackle Overreach And Ease Customer Burden

The Dutch government has confirmed an overhaul of its anti-money laundering (AML) policy as it seeks to lighten the compliance burden for payment service providers (PSPs) and ensure customer access to payment accounts.

In a letter to parliament, government ministers Eelco Heinen, responsible for financial services, and David van Weel, the justice minister, acknowledged that the country’s existing AML framework has placed disproportionate pressure on gatekeepers, without delivering the intended results.

“In recent years, the gatekeeper role in the Netherlands has not functioned well, especially at banks,” the letter says, citing failures by several financial institutions in recent years to properly detect and prevent illicit activity.

It goes on to state that this has led to major enforcement actions and sweeping compliance overhauls that have, in some cases, proved excessive.

According to the ministers, “this intervention has led to an overreaction, both in the sector and among the supervisors. As a result, the anti-money laundering approach has gone too far in practice, with negative consequences for citizens and entrepreneurs.”

“There are many examples that show that the efforts of banks have a disproportionate impact on customers,” the ministers warn.

Because of this, the new strategy emphasises a new approach for firms and supervisors to take to AML policy, “reducing the burden on bona fide entrepreneurs and citizens” and “increasing barriers for criminals”.  

US GENIUS Act Senate Setback Throws Spanner Into Crypto Works

Moves to create a regulatory framework for the US stablecoin industry have suffered a setback following a legislative defeat in the Senate.

Last week, a cloture vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act failed in a 48-49 vote, with the bill falling short of the 60 votes required to advance to a floor debate.

As covered by Vixio, the bill passed out of the Senate Banking Committee in March with bipartisan support.

Introduced by Senator Bill Hagerty (R-TN), it is co-sponsored by Senator Tim Scott (R-SC), alongside Senators Cynthia Lummis (R-WY), Kirsten Gillibrand (D-NY) and Angela Alsobrooks (D-MD).

However, concerns about the Trump family’s interests in stablecoins, particularly following deals with the United Arab Emirates and Binance, prompted Democrats, rallied by Senator Elizabeth Warren (D-MA), to reject the legislation.

Posting on X ahead of the vote, Senator Warren said: “The Trump family stablecoin surged to 7th largest in the world because of a shady crypto deal with the United Arab Emirates — a foreign government that will give them a crazy amount of money.”

She added: “The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption.”

UK's Payment Systems Regulator Hails Promising Start To New APP Scam Reimbursement Rules

Details of how the UK’s new mandatory reimbursement rules for authorised push payment (APP) scam victims are performing show early success in protecting consumers and levelling the financial services playing field.

According to the Payment Systems Regulator (PSR), 86 percent of money lost to APP scams within the scope of the new policy was returned to victims in the three months following its October 2024 implementation, amounting to approximately £27m.

This compares favourably with pre-policy trends: UK Finance data for 2023 showed a reimbursement rate of 68 percent by value, although direct comparisons are complicated by changes in definitions and methodology.

“We are pleased with what we’ve seen in the data and heard from stakeholders in the first few months, which demonstrates that the policy has been successfully implemented — and more consumers have been protected,” said David Geale, managing director of the PSR, in a blog post unveiling the data.

“This is testament to the efforts of industry to deliver the best outcomes for victims of APP scams and work with us to resolve any issues.”

Vulnerable customers, who had been a significant focus of the reform, appear to be better shielded under the new regime. The data revealed so far by the PSR shows that claims from such individuals accounted for 14 percent of the total, equating to £7m in reimbursements.

The regulator also reports a significant expansion in the number of firms reimbursing victims.

Prior to the policy’s implementation, reimbursement was largely confined to customers of the ten firms signed up to the voluntary Contingent Reimbursement Model Code.

In contrast, 60 firms have reimbursed APP fraud claims under the mandatory framework, which the regulator believes represents a more level playing field.

“The policy is having an impact and we’re seeing positive results. A high proportion of APP scam victims are being reimbursed consistently across a larger number of PSPs,” said Geale.

Misleading Websites Leave Malta Unpleased With Crypto Firms

The Malta Financial Services Authority (MFSA) has issued a warning to licensed crypto-asset firms in the country after a supervisory review revealed widespread deficiencies in the way these companies present themselves online.

In a new Dear CEO letter addressed to CEOs and compliance officers at all Malta-licensed crypto-asset service providers (CASPs), the regulator said a review had highlighted serious concerns about misleading content, poor risk disclosures and insufficient regulatory transparency on firms’ websites.

The review, carried out by the MFSA’s Conduct Supervision Function, assessed the websites of all CASPs operating in Malta as of March 17, 2025.

It aimed to determine whether firms were complying with the requirements of the EU’s Markets in Crypto-Assets Regulation (MiCA), which came into effect earlier this year.

It also sought to establish expectations and best practices relating to website content and consumer disclosures.

Among the most significant findings, the MFSA noted that licensing statements were often poorly displayed, with some buried in obscure parts of websites or rendered in small font sizes that failed to stand out.

In addition, risk warnings were insufficiently prominent, frequently appearing in dedicated legal sections rather than alongside relevant product and service information.

The MFSA has urged firms to make these disclosures clearer and more visible to users, particularly where investment risks are high.

“CASPs are expected to include a full licensing statement to specifically mention that it is licensed by the MFSA as a crypto-asset service provider in terms of the MICA Regulation,” the letter said, adding that companies are expected to provide full disclosure of the services that they are authorised to offer under the CASP licence.

“Any other services provided [that] are not regulated under MICA should be clearly indicated as such,” the letter indicates.

‍

Want to know more? 

Request a demo with one of our experts today to gain full access to the stories we cover - and much more - and start learning how you can make compliance a competitive advantage for your organisation.