Mastercard: Indias localisation rules may compromise fraud detection and ML

Monday 18 March 2019 00:00 CET | News

Mastercard has showed concerns of India’s strict data localisation rules that could compromise its ability to detect frauds and ML in the domestic payments system.

Mastercard’s representatives consider that storing customer data exclusively in India without creating mirror sites overseas is risky. The reason for this is the fact that it takes away the capability to see the broader world. Despite this, the US-based company intends to comply with the new rules, although it missed 2018’s deadline to localise all its Indian data.

In April 2018, the Reserve Bank of India asked payment companies to ensure their data are stored exclusively on local servers, giving a six month deadline for compliance. Because international companies tend to store their data on global servers, countries that require data localisation force them to make additional investment in expensive domestic infrastructure and storage systems. Mastercard and Visa were among those that requested an extension after missing the RBI’s October deadline.

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Keywords: MasterCard, India, data rules, fraud detection, money laundering, payments , localisation, risks, US
Countries: World