Sanctions on Russia Produce Ripple Effects on Payments Giants, Crypto Players
The U.S. has led a ban on major Russian banking institutions from the SWIFT bank messaging system while also imposing restrictive measures on the Russian Central Bank. Additionally, popular mobile payment platforms such as Apple Pay and Google Pay are no longer functioning in the nation.
Partners Rick Levin, Craig Nazzaro, and Brad Rustin warned that these changes could pose significant regulatory risk to U.S. financial institutions and FinTech companies.
“These (sanctions) pose a significant regulatory risk to US financial institutions and FinTech companies," they wrote. "While an entity's strong Bank Secrecy Act, anti-money laundering compliance program and Office of Foreign Asset Control sanctions program should be able to address these new sanctions, the controls around your third-party due diligence and FinTech partnership program oversight most likely did not anticipate such a large-scale change to the regulatory landscape with a developed country that is extremely active in the payments, digital assets, and FinTech spaces."
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