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00:03:15
Unidentified Speaker, -
MOBILE PAYMENTS, I THINK. >> I THANK THE CHAIRWOMAN, AND THIS IS
00:03:30
Unidentified Speaker, -
THE THIRD LOOK AT THE ISSUE OF MOBILE PAYMENTS, AND I HAVE TO
00:03:35
Unidentified Speaker, -
COMMEND THE CHAIRWOMAN AND COMMITTEE FOR HOLING THE SERIES OF HEARINGS ON NEW TECHNOLOGY, AND WE CO-HOSTED A DINNER TO LOOK AT IT, AND EXPOSE THE NEW...
00:04:35
Unidentified Speaker, -
FOR EVERYONE FROM CONSUMERS AND
00:04:38
Unidentified Speaker, -
MERCHANTS TO FINANCIAL INSTITUTIONS AND OTHER PROVIDERS. MOBILE PAYMENTS HAVE ALREADY PROVEN TO BE THE MOST SIGNIFICANT DEVELOPMENT IN CONSUMER PAYMENT...
00:08:19
Unidentified Speaker, -
JAMES H. REES, DIRECTOR OF FINANCIAL CRIME ENFORCEMENT NETWORK AT THE DEPARTMENT OF TREASURY. WELCOME. I WELCOME YOUR STATEMENT. >> THANK YOU AND GOOD...
00:08:38
Unidentified Speaker, -
MICROPHONE -- THANK YOU. >> I AM JIM FREIS, DIRECT GROWTH THAN SOME STAFFERS TO ESTABLISH A MEANINGFUL REGULATORY FRAMEWORK FOR MOBILE PAYMENT TO ANOTHER...
00:08:53
Unidentified Speaker, -
IS. MY TESTIMONY TODAY WILL FOCUS ON SOME OF THE MOST IMPORTANT REGULATORY ANALYTICAL WORK BEING DONE TO PREVENT CRIMINAL ABUSE OF THE FINANCIAL SYSTEM...
00:14:00
Unidentified Speaker, -
WELCOME. >> CHAIRMAN CAPITO, RANKING MEMBER MALONEY AND MEMBERS OF THE SUBCOMMITTEE, CHENEY MET FOR INVITING ME TO APPEAR BEFORE YOU TODAY TO TALK...
00:14:09
Unidentified Speaker, -
MOBILE PAYMENTS. THE EVOLUTION OF TECHNOLOGY THAT ENABLES CONSUMERS TO CONDUCT FINANCIAL TRANSACTIONS USING MOBILE DEVICES HAS THE POTENTIAL TO AFFECT...
00:18:26
Unidentified Speaker, -
SOMETHING MS. MARTIN SAID AT THE END OF YOUR STATEMENT BECAUSE AT THE DINNER WE HAD LAST NIGHT WE HAD FIVE PRESENTERS AT THE WHOLE RANGE OF FORWARD...
00:20:06
Unidentified Speaker, -
THE PARTNERSHIP -- I BENICIA PARTNERSHIP BETWEEN A BANK, NONBANK SERVICE PROVIDER, SOMETIMES THE TELEPHONE COMPANY WOULD BE INVOLVED. ANY PARTICULAR...
00:21:00
Unidentified Speaker, -
INTERNATIONALLY, TOO. OTHER SPECIALIZED AGREEMENTS FOR MOBILE PAYMENTS ARE AWARE OF OR DO THEY FALL WITHIN THE NORMAL BANK TO BANK RELATIONSHIP AGREEMENTS...
00:21:20
Unidentified Speaker, -
INSTITUTIONS , THEN IT IS LARGELY TODAY RELIANCE ON EXISTING BANK CENTRIC NETWORKS, SUCH AS THOSE INVOLVING WHAT WE COMMONLY KNOW AS MASTERCARD OR...
00:21:56
Unidentified Speaker, -
WE SAW WAS TALKING ABOUT BEING ABLE TO HAVE A CARD THAT YOU COULD SLAP BETWEEN PAIN BUT YOUR VISA DATABASE EXAMPLE OR NOT REWARD POINTS. I MEAN, THAT...
00:22:36
Unidentified Speaker, -
A CREDIT CARD WITH FLIGHT MILES ON IT TOO RISKY. THAT IS USUALLY REDEEMABLE AT A SPECIFIC MERCHANT SELECTED NEWSNIGHT U.S. AIR FLIGHT MILES AT U.S....
00:23:18
Unidentified Speaker, -
THEY COVERING ALL SORTS OF DIFFERENT TRANSACTIONS THAT MAY BE COMING OVER THE SAME VIRTUAL WALLET. >> ONE OF THE ISSUES IS TO LOOK AT THE CONSUMER PROTECTION...
00:23:32
Unidentified Speaker, -
THIS EF BB WILL HAVE THE BOOK WRITING AUTHORITY UNDER THOSE LAWS. BUT IT'S NOT CLEAR THAT THOSE LAWS DO APPLY. >> THAT'S A POINT YOU'RE MAKING. >> IN...
00:23:56
Unidentified Speaker, -
NOT APPLY DEPENDING WHAT
00:23:58
Unidentified Speaker, -
THE NONBANK SCHOOL IS. >> THANK YOU. MS. MALONEY. >> FIRST OF ALL, SHE THINK BOTH OF THE PIN ON US AND I AGREE WITH
00:24:11
Unidentified Speaker, -
THE CHERRY
00:24:14
Unidentified Speaker, -
LADY AND STIFLE INNOVATION AS WE MOVE FORWARD TO MAKE SURE MONEY LAUNDERING IS PREVENT THEM OTHER THINGS AREN'T PLACE. AS YOU LOOK AT THIS EVOLVING...
00:25:54
Unidentified Speaker, -
DIFFERENT FINANCIAL SERVICE PROVIDERS AND A DIFFERENT RANGE OF AGENCIES TO ENSURE APPROPRIATE REGULATION. SO FOR THE ANTI-MONEY LAUNDERING PURPOSES,...
00:27:38
Unidentified Speaker, -
THINK ABOUT WHAT AGENCY SHOULD
00:27:39
Unidentified Speaker, -
TAKE OWNERSHIP OF THIS AREA. IT IS SUCH A BROAD AREA AND IT COVERS SO MANY DIFFERENT TYPES OF ENTITIES. IT'S REALLY HARD TO POINT TO ONE AGENCY WITH...
00:28:32
Unidentified Speaker, -
OTHER. THEY'RE BUILDING ON YOUR QUESTION ON THIS THEME IN YOUR HAT, THEY ARE TESTIFYING TO US ARE TELLING US THAT THIS DINNER WE HAD EXPLAINED THE...
00:29:18
Unidentified Speaker, -
HAVE REGISTRATION REQUIREMENT AND BONDING INVESTMENT LIMITATIONS. SO TO THAT EXTENT I KNOW STATES DO HAVE SOME LIFE. WHEN YOU TALK ABOUT BRINGING PHONE...
00:30:05
Unidentified Speaker, -
10% IS PAYMENT USERS DON'T HAVE A BANK ACCOUNT AND ROUGHLY 30 MILLION AMERICANS ARE EITHER ON BANKED OR UNDER BANKED. SO HOW DO YOU FEEL THE GROWTH OF...
00:30:32
Unidentified Speaker, -
PRESENT A GOOD OPPORTUNITY FOR THE BANK AND ON BANKED TO OBTAIN PAYMENT SERVICES PERHAPS BETTER MORE EFFICIENT AND PERHAPS EVEN CHEAPER THAN ALTERNATIVES...
00:31:31
Unidentified Speaker, -
TO ANNOTATE WITHIN THE SPACE. WHAT SPECIFIC STEPS SHOULD REGULATORS BE TAKING TO ENCOURAGE INNOVATION AND INVESTMENT IN THE MOBILE PAYMENT SPACE WHILE...
00:32:04
Unidentified Speaker, -
PRIORITIES AND KEY CONCERNS THAT YOU WOULD LIKE TO SEE IN THIS MOBILE PAYMENT RELATIONS REGARD TO HOW THEY'RE STRUCTURED. I MENTION A COUPLE IN MY...
00:33:07
Unidentified Speaker, -
SO, WHAT TYPE OF COORDINATION IS GOING ON BETWEEN REGULATORS IN THE UNITED STATES ANOTHER KIND TREES? >> I'M HAPPY TO ADDRESS THAT FIRST. WITH RESPECT...
00:33:23
Unidentified Speaker, -
AT FIRST, WE HAVE DEVELOPED INTERNATIONAL PRINCIPLES IN TERMS OF EXPECTATIONS ESTIMATE THE RISKS THAT ARE ENOUGH FOR US TO MITIGATE THEM. WE DO THAT...
00:35:03
Unidentified Speaker, -
AND
00:35:05
Unidentified Speaker, -
RAPIDLY EVOLVING TO REGULATORY SCANDALS. WHERE SYSTEMS ARE MORE MATURE AND BASS TRACK SUITS ARE ESTABLISHED AND THAT REALLY HASN'T HAPPENED YET. >>...
00:35:31
Unidentified Speaker, -
I SEE THAT KIND OF
00:35:33
Unidentified Speaker, -
FIVES. >> I WOULD ASK UNANIMOUS CONSENT TO ANSWER THE PHONE RECORDS
00:35:37
Unidentified Speaker, -
FROM THAT CFPB I WOULD LIKE TO RECOGNIZE
00:35:41
Unidentified Speaker, -
MR. BACHUS FOR FIVE MINUTES. >> THANK YOU, NOT SURE FOR CALLING THIS MEETING. ONE OF THE THINGS I WANT TO ADD COME THE BASIC RULES AND ARE DOING THE...
00:35:50
Unidentified Speaker, -
A CREDIT LINE RECALLED BY
00:36:53
Unidentified Speaker, -
EFTA OR TIJUANA, DOES ERROR RESOLUTION PROCEDURES WITH TAKEN FOR CONSUMERS. >> HOW WOULD THEY BE PERFORMED BECAUSE THEY WOULD BE COVERED BUT THEY WANT...
00:37:09
Unidentified Speaker, -
THE TIME THEY ARE TIME IS REIMBURSED BECAUSE A LOT OF THEM ON FIXED INCOME. >> THE EXISTING FOR THAT EFTA AND TIMEFRAME SHOULD BE DISCLOSED TO CONSUMERS...
00:37:27
Unidentified Speaker, -
WELL. I BELIEVE THE INVESTIGATION WITHIN 10 DAYS THAT THE INVESTIGATION IS NOT CONCLUDED THE CONSUMER HAS TO BE REIMBURSED ON THE INVESTIGATION CONTINUES....
00:37:54
Unidentified Speaker, -
DOING ANYTHING. >> CONSUMER INITIATES
00:37:59
Unidentified Speaker, -
THE PROCESS. >> IS SHOULD BE IN DOING THAT AS TWO DIFFERENT THINGS. >> THE OTHER POINT I WANTED
00:38:06
Unidentified Speaker, -
TO MAKE IF THOSE LAWS -- IT IS
00:38:10
Unidentified Speaker, -
NOT CLEAR THE LAWS APPLY IN ALL CASES WHERE NONBANK IS
00:38:14
Unidentified Speaker, -
INVOLVED. I DO KNOW THAT SOME NONBANK PAYMENT PROVIDERS HAVE INCORPORATED EFTA LIKE ERROR RESOLUTION PROCEDURES INTO THEIR ROLES AND USER AGREEMENTS....
00:38:42
Unidentified Speaker, -
MONTHLY BILLS. WE USED TO SEE THIS A LOT WITH CREDIT CARDS. THIS IS A CAUSE OF A LOT OF CONSUMERS TO DISPUTE THESE CHARGES. HOW CONSISTENT ARE THE...
00:39:16
Unidentified Speaker, -
IN ON. THAT IS REALLY OUTSIDE MY AREA OF EXPERTISE OR KNOWLEDGE. I WOULD HAVE TO DO IF YOU GET BILLED ON YOUR PHONE BILL FOR A PAYMENT ISSUES AND AM...
00:39:44
Unidentified Speaker, -
LEFT, BUT WE'VE JUST BEEN CALLED FOR A VOTE. I'M GOING TO GO
00:39:51
Unidentified Speaker, -
TO MR. LEUTKEEYER BECAUSE HE'S THE NEXT BOAT. WHEN YOU WANT TO COME BACK WITH TWO OF THOSE. >> THANK YOU, MADAM CHAIR AND THANK YOU FOR THE BRIEFING...
00:40:06
Unidentified Speaker, -
AND AFTER THAT MEETING AT THOMAS.I'M GOING TO GET A ROTARY PHONE ICU. SO GETTING IN THE 21st CENTURY. THANK YOU FOR BEING HERE THIS MORNING AND JUST...
00:41:04
Unidentified Speaker, -
STANDARDS. >> GENERALI WHEN WE WORK ON INTERNATIONAL STANDARDS AND OTHER CONTACTS, AND AS WHEN WE HAVE SOME RULES
00:41:13
Unidentified Speaker, -
IN A THIN PLACE ABOUT HOW THAT MARKET IS REGULATED TO YOUR. ALL I AM SAYING IS I THINK WE NEED TO DO FURTHER INVESTIGATION DOMESTICALLY BEFORE WE START...
00:41:34
Unidentified Speaker, -
FIRST -- >> ARE YOU FAMILIAR WITH CFPB'S PROPOSED RULES WITH INTERNATIONAL WIRE TRANSFER SERVICES CLIENT'S >> AND SOMEWHAT
00:41:41
Unidentified Speaker, -
WITH
00:41:43
Unidentified Speaker, -
IT. >> ARE YOU FOR COME AGAINST IT? HOW WILL IT AFFECT MOBILE PAYMENTS I GUESS IS
00:41:51
Unidentified Speaker, -
THE QUESTION. >> THAT'S A GOOD QUESTION. A MASHUP IS
00:41:55
Unidentified Speaker, -
THERE'S ANY MOBILE PAYMENT ARRANGEMENTS AT THIS TIME. JENN COME YOU
00:42:01
Unidentified Speaker, -
CAN JUMP IN HERE COMETH THE NEWS FOR INTERNATIONAL REMITTANCES. >> ACTUALLY, THERE ARE SOME SERVICES FOR WHICH MOBILE PAYMENTS ARE A PART OF THAT INTERNATIONAL...
00:42:16
Unidentified Speaker, -
NETWORK AS I'VE MENTIONED IN MY WRITTEN TESTIMONY THAT ARE COVERED FROM REGULATORY FRAMEWORK AND CONGRESSMEN, JUST RESPONDING TO YOUR QUESTION, WANTED...
00:43:49
Unidentified Speaker, -
YOU KNOW, SWIFT RECOMMENDS A PROPORTIONATE APPROACH THAT CAN BE TRANSFERRED, ADVANCED INCLUSION AND ENSURE SOUNDNESS OF FINANCIAL SERVICES. WHAT ARE...
00:44:15
Unidentified Speaker, -
MONITOR. ONE THING I CAN SAY IS SOMETHING I INSTITUTED AFTER JOINING THE AGENCY MORE THAN FIVE YEARS AGO IS A YEAR AFTER WE PROMULGATE OUR NEW RULES...
00:44:49
Unidentified Speaker, -
PANEL APPEARED WITH ABOUT 10 MINUTES WESTERVILLE. >> THANK YOU, MR.
00:44:54
Unidentified Speaker, -
CHAIRMAN. I MAY JUST ASK YOU THIS. LET'S SUPPOSE WHAT ADVICE WOULD YOU GIVE THE AMERICAN PEOPLE IF ONE OF THEM
00:45:01
Unidentified Speaker, -
WERE TO USE THEIR CELL PHONE, THEIR MOBILE PHONE, BUT SHOULD THEY DO, ESPECIALLY REGARDING HOW THEY PROTECT THEIR VITAL INFORMATION? WHAT SHOULD THEY...
00:45:27
Unidentified Speaker, -
PASSWORD? SPINET PASSWORD-PROTECTED CELL PHONE. I ALSO THINK IT'S IMPORTANT FOR CONSUMERS TO UNDERSTAND WHAT IS ON
00:45:34
Unidentified Speaker, -
THEIR PHONES AND WHO TO CALL IF THEY LOSE THEIR PHONE. SO TO HAVE THAT INFORMATION SOMEWHERE OTHER THAN ON YOUR PHONE WOULD BE A VERY GOOD STEP IN...
00:46:02
Unidentified Speaker, -
WHERE TO COMPLAIN, TO CALL? WHAT DO YOU DO QUAKES IS GOOD THAT THEY PUT THEIR CELL PHONE, THEIR I.D. AND PASSWORD AND ALL OF THAT, BUT IS THERE ANYTHING...
00:47:12
Unidentified Speaker, -
TO IT, WHICH IS THE SAME THING IS THAT I LOST MY PLASTIC. I WOULD CALL THE CREDIT CARD COMPANY. SO I THINK MANY OF THE PROCEDURES YOU WOULD OR WOULD...
00:47:37
Unidentified Speaker, -
IS CLEAR. ONE THING THAT MUST BE SAID IS PART OF THE REASON WHY
00:47:43
Unidentified Speaker, -
THESE PAYMENT PRODUCTS, PREPAID WHETHER THROUGH MOBILE PHONE OR CAR TO TAKE AN OFFICE BECAUSE HE DO HAVE RECOURSE TO YOUR FUNDS. UNLIKE IF YOU LOST...
00:48:24
Unidentified Speaker, -
NOTE THERE IS FURTHER QUESTIONS ON THE PANEL WHICH THEY MAY
00:48:27
Unidentified Speaker, -
WISH TO SUBMIT IN WRITING. WITHOUT OBJECTION IS YOUR GOURMET AND OPEN FOR 30 DAYS TO MEMBERS TO SUBMIT QUESTIONS INTO PLACE RESPONSES IN THE RECORD....
00:49:35
Unidentified Speaker, -
FOR

NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.

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