Payments Processing Roundtable

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Felix Shipkevich and Stefan Savic Were Speakers for Payments Panel

Posted on March 20, 2018 at 2:42 pm by


Principal Felix Shipkevich and partner Stefan Savic were panelist for Hofstra University’s Payments Processing Roundtable on March 14, 2017. The University’s Maurice A. Deane School of Law’s Forum for Global Financial Regulation hosted “The Future of Payment Processing and Money Services Businesses,” which focused on FinTech and Money Services Industry legal and regulatory issues. Principal Felix Shipkevich Co-chaired the event and moderated two panels. Partner Stefan Savic spoke for the panel “Enforcement and Litigation Issues for Money Service Businesses.” The Roundtable featured payments industry issues such as compliance with regulatory agencies both state and federal, litigation, and novel technology such as Cryptocurrency and consumer protection in the payments industry.

Shipkevich attorneys provide regulatory and compliance services to financial institutions and money service businesses which were the foundation of the panels. C-level executives and other professionals were among the speakers explaining what a Money Service Business (MSB) is and how they differ from banks. Legal services in this area involve registering and complying with regulatory bodies such as the Treasury Department’s FinCEN (Financial Crimes Enforcement Network), Office of the Comptroller, and individual state jurisdictions for money transmitter license. Topics included who needs to register, anti-money laundering regulations, audits, and non-bank entities.

Felix Shipkevich moderated the panel “Dodd-Frank Act’s Impact on Money Services Business,” having substantial experience as counsel to clients for the Dodd-Frank Act regulations. Some of the points covered were swap reporting for MSB transactions, whether MSBs need to register as swap dealers or major swap participants, and exemptions. Forex exchange, Mr. Shipkevich’s practice, also applies to some MSB transactions which raises the question whether they have to register as retail foreign exchange dealers and if there is a period of legal uncertainty for foreign exchange transactions.

Stefan Savic’s practice focuses on business litigation and as such spoke about enforcement and litigation issues for MSBs. The panel covered current enforcement issues and the attorneys offered insights into future enforcement issues. Each state with the exception of Montana enforces MSBs within their own jurisdiction, and the panel compared and contrasted these enforcement differences. Having extensive experience in the litigation profession, Mr. Savic advised on navigating enforcement actions and fostering consistent approaches across multiple state lines.

Part of the Roundtable featured the Commodity Futures Trade Commission’s “LabCFTC” and their effort to best regulate financial innovation in the payments industry such as Blockchain distributed ledger technology. The goal of the CFTC is to protect both consumers and corporate consumers of MSBs, as such FinTech disrupts payments processing operations. The attorneys explained how a financial technology company may be a money transmitter or processor, an issue emerging from Blockchain virtual currency regulations.

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