The Role of Government in Payments Risk and Fraud - November 17-18, 2011


Thursday, November 17, 2011

Welcome and introductory remarks
Marie Gooding, First Vice President, Federal Reserve Bank of Atlanta

Keynote address
The Fed's Role in the U.S. Payments System video
Louise Roseman, Director, Division of Reserve Bank Operations and Payment Systems, Board of Governors of the Federal Reserve System

Panel 1: Rationalizing Government Oversight
Oversight of the U.S. payments system is split among a multitude of different regulators at the federal and state levels. Further, regulators have different models of oversight, ranging from prudential supervision to incident-based responses. Oversight also varies, depending on whether the payments system participant is a financial institution or third party. The panelists will discuss the challenges of existing oversight systems, as well as potential alternative models for ensuring payments system security and soundness.

Michael Benardo
, Chief, Cyber Fraud and Financial Crimes Section, Federal Deposit Insurance Corporation [Presentation] pdf
Hector Rodriguez, Senior Business Leader, Global Third Party Risk, Visa Inc.
David Silberman, Associate Director; Research, Markets, and Regulations; Consumer Financial Protection Bureau [Presentation] pdf

Moderator: Cindy Merritt, Assistant Director, Retail Payments Risk Forum, Federal Reserve Bank of Atlanta

Panel 2: Issues with Enforcement Collaboration
In the past decades, financial crime has become an increasingly global and sophisticated business. International and domestic law enforcement must continue to collaborate with one another, as must industry players in the cross-border fight against these criminals. The panelists will discuss the rapidly shifting threat and challenges to ongoing and future collaboration.

Emery Kobor,
Assistant Director for Strategic Policy, Office of Terrorist Financing and Financial Crimes, U.S. Department of the Treasury
Jonathan Rusch, Deputy Chief for Strategy and Policy, Fraud Section, Criminal Division, U.S. Department of Justice [Presentation] pdf
Karen Hobbs, Senior Attorney, Division of Marketing Practices, Federal Trade Commission

Moderator: Kim Duncan, First Vice President, Enterprise Fraud Management, SunTrust Banks Inc. [Presentationpdf

Panel 3: Measurement of Fraud
Unlike some other countries, the United States lacks comprehensive data on fraud levels and trends, and currently no institution or organization is empowered to collect such industry-wide data. This panel discusses the need for more comprehensive fraud measurement and the proper scope for such measurement. Current practitioners will also give their perspective on the challenges of surveying for fraud data.

Richard Sullivan
, Senior Economist, Federal Reserve Bank of Kansas City [Presentation] pdf
Jane Yao, Vice President and Director, Benchmarking and Survey Research Group, American Bankers Association [Presentation] pdf
David Bellinger, Director, Payments, Association for Financial Professionals [Presentation] pdf

Moderator: Scott Schuh, Senior Economist and Director, Consumer Payments Research Center, Federal Reserve Bank of Boston

Friday, November 18, 2011

Panel 4: Impacts of Current Regulatory Efforts on Fraud and Risk
The payments environment continues to evolve with new regulatory efforts such as the CARD Act, overdraft legislation, Regulation II (the Durbin Amendment), and more. These new regulatory efforts will impact all forms of payments from ACH to checks to cards. The panelists will discuss the effects the current regulatory environment could have on such issues as consumers' and merchants' payment behavior and preferences, new and emerging payments systems, and payments risk and fraud.

Mark Manuszak,
Senior Economist, Division of Research and Statistics, Board of Governors of the Federal Reserve System [Presentation] pdf
Shawn Miles, Senior Vice President and Group Head, Global Public Policy and Regulatory Strategy, MasterCard
Dan Schutzer, Chief Technology Officer, BITS, Financial Services Roundtable [Presentation] pdf

Moderator: Bob Hunt, Vice President and Director, Payments Card Center, Federal Reserve Bank of Philadelphia

Panel 5: Rationalizing Laws and Regulations
The U.S. payments systems are regulated under a complex matrix of federal and state laws. Some laws are intended to be comprehensive while others are much more specific in their objectives. The panelists will examine principal payments system laws and regulations and the need to rationalize these laws and the regulations in light of payments systems convergence and in the interests of clarifying warranties and liabilities for consumers and businesses alike.

Duncan Douglass, Partner, Corporate and Retail Payment Systems, Alston & Bird LLP [Presentation] pdf
David Whitaker, Senior Company Counsel, Strategy and Operational Risk Group, Wells Fargo Bank N.A. [Presentation] pdf
Stephanie Heller, Deputy General Counsel and Senior Vice President, Legal Group, Federal Reserve Bank of New York [Presentation] pdf

Moderator: Mark Budnitz, Professor of Law, Georgia State University College of Law