“Everyone is more than aware of the challenges with new regulation in a global environment that becomes ever more complex. From the 4AMLD and 5AMLD, to GDPR, to PSD2, to NY DFS Final rule – all have had an impact on existing KYC processes….”
The EU has identified Open Banking as one potential remedy to an area of slow innovation and market development that seems to be holding back the competitiveness of its trading bloc. European regulators intervened in late 2015 and adopted a second Payment Services Directive (“PSD2”) that compels banks to connect their digital assets to entities outside their organizations through a standard API interface. Elements of the new EU law become active in EU Member States in January 2018 and mandatory industry standards for the banks’ API will be in place in early 2019.