ABSTRACT
This chapter covers the main regulations and licences applicable to the payments industry. It gives an overview of EU payment regulations, including the Second Payment Services Directive (PSD2), the eMoney Directive, and what they mean to the payments industry. It introduces the concepts of Strong Customer Authentication (SCA), exemptions, and open APIs. It covers the permissions necessary to operate a payments business (e.g. Payment Institution, eMoney Institution), open banking registrations, as well as special cases (e.g. phone paid services, crypto). It will provide comparison tables and a clear mapping of businesses obligations and available options. It also covers the fundamental principles of AML/CTF regulations (e.g. due diligence, KYC, record-keeping, etc.), introduces the FATF and regulators worldwide, as well as applicable regulations in the EU and the US. It will introduce the global landscape of Big Tech regulations, lessons learnt, and best practices, and offer some insight on what the future may look like. Readers will be able to understand overlaps/synergies/potential conflicts with other applicable regulations and get some practical advice. This chapter is an overview of a complex matter, and it will enable the reader to understand the most salient points and access further readings. For more extensive reviews of global regulations, good books are already available on the topic, and regulations don’t change that fast.
