Voice of the Industry

The global regulatory landscape for acquiring banks and payment providers

Monday 24 February 2025 11:49 CET | Editor: Irina Ionescu | Voice of the industry

Maya Shabi, Senior Risk Strategist at EverC, discusses the current state of the global regulatory landscape, emphasising the need for payment providers and acquiring banks to be prepared for complex requirements and compliance.


The regulatory landscape for acquiring banks and payment providers is evolving globally, with regions adopting distinct priorities to address technological advancements, financial stability, and consumer protection. 

In the United States, changes have been driven by the implementation of rules under the Anti-Money Laundering Act of 2020 (AML Act), with new proposals designed to modernise AML programmes. One of the central developments in 2024 was the Financial Enforcement Network’s (FinCEN) push to strengthen AML/CFT programmes across financial institutions. Proposed regulations require these programmes to be risk-based, tailored to each institution's unique profile, and subject to periodic review. 

 

The US: new administration, new priorities

Domestic politics in the US can significantly influence financial regulation and enforcement, with shifts in administration bringing changes in policy. The new administration is signaling a shift towards a more relaxed approach to regulation in the financial sector. In sectors like cryptocurrency, concerns have been raised about President Trump and the First Lady launching crypto meme coins, which could enable them to generate direct profits from an industry that the POTUS is responsible for regulating. 

Within the flurry of executive orders coming out this year, two are intended to promote American innovation in financial technology and artificial intelligence by rescinding prior directives perceived as hindrances to AI innovation and mandating action plans.

The EU: regulations expanding to protect consumers

The EU and the UK are advancing comprehensive regulations around consumer protection. The UK emphasises operational resilience and fair competition in payment systems, while the EU is implementing the 6th Anti-Money Laundering Directive (AMLD6) to expand liability for financial crimes and strengthen enforcement mechanisms. The directive underlines the importance of holding entities accountable for systemic AML breaches and introduces harsh penalties for non-compliance. 

One initiative the payments industry should look out for is the third Payment Services Directive (PSD3), which aims to enhance payment security and consumer rights, addressing technological advancements to protect Europe’s payment system.

APAC: focus on financial integrity

The Asia-Pacific (APAC) region is also prioritising consumer protection and financial system integrity. Singapore has introduced rigorous licensing frameworks for payment providers, ensuring compliance with AML and counter-terrorism financing (CFT) standards, while Australia and others in the region are focusing on expanding the scope of AML compliance regimes to include more entities and ensuring consumer safety amid rapidly evolving payment ecosystems. 


LATAM: driving modernisation and innovation

Meanwhile, Latin America (LATAM) is driving regulatory modernisation to address the rapid adoption of digital payments.   Open Banking initiatives in Brazil and Mexico are meant to encourage innovation and promote competition among payment service providers while addressing systemic risks associated with financial inclusion efforts.


Maintain adherence with card brand policies 

Acquiring banks and payment providers are also required to stay engaged with card brands, which will continue to provide guidelines and enforce non-compliance, which can result in fines or termination from accessing payment networks. Payment providers are advised to align their Acceptable Use Policies (AUPs) with card schemes rules, in addition to maintaining sufficient merchant monitoring and fraud detection mechanisms.

Regardless of the region, one thing is clear over the next months unfolding 2025 – financial institutions and payment providers must closely monitor the evolving regulatory framework, particularly as changes will likely lead to increased complexity for compliance, as well as a heightened focus on enforcement in key regions. 

For a deeper dive into regulatory trends faced by payment providers in 2025, download the EverC global regulatory report today.   


About Maya Shabi 

Drawing on her expertise in counterterrorism, geopolitical risk assessment and mitigation in the intelligence sector, Maya Shabi tracks emerging online threats with the goal of leveraging technology to beat bad actors at their own game. Maya is deeply fascinated by the evolution of society's engagement with technology and drives thought leadership and product development to disrupt some of the world’s worst actors. She is passionate about standing up for vulnerable and marginalised communities that are impacted by threats across the industry landscape.


About EverC

EverC is focused on powering growth for the ecommerce ecosystem. Our automated AI-driven, cross-channel risk management solution rapidly detects high-risk merchants and transaction laundering, removes illicit products and services, and provides ongoing monitoring to uncover evolving risks. Learn more at www.everc.com!


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: regulation, regulatory sandbox, AML, terrorism, CFT, AMLD6, PSD3, online payments, payments , compliance, crypto, cryptocurrency, artificial intelligence, banks, online banking
Categories: Fraud & Financial Crime
Companies: EverC
Countries: World
This article is part of category

Fraud & Financial Crime

EverC

|
Discover all the Company news on EverC and other articles related to EverC in The Paypers News, Reports, and insights on the payments and fintech industry: