August 16th Meeting with Interac

At the ATMIA Canadian event, Mark O’Connell, President & CEO, Interac Association/Acxsys Corporation, provided the keynote presentation on “The Evolution of the ABM Marketplace in Canada,” concluding that “We are now at a critical point in the ABM’s product life-cycle and have some challenges to overcome in order to continue building on our success. Together, we built the INTERAC network and together we will battle the challenges that impact the growth and leverage new technologies to deliver new products and services.”

ATMIA took this literally, and has scheduled a face-to-face meeting with Mr. O’Connell and other staff of Interac to start working together to battle short and long term battles.  This meeting is set for the afternoon of August 16th.  The tentative agenda is:

1. Short Term

• Discuss issues around the management of the regulations process, ensuring workable solutions and that our members are heard in regards to any AML and/or Counterfeiting regulations that are coming down the pike, as well as, making sure there is consistent enforcement.
• Discuss ATMIA and Interac working jointly towards similar goals and messages, coordinating action, and keeping the lines of communication open, ultimately, breading confidence in the payment system.

2. Long Term

• Working towards building long term relations, as not to reinvent the wheel each time an issue arises.

Meeting with the Department of Finance

Key member of the ATMIA Canadian Board, met with Representatives from the Department of Finance and FINTRAC on June 4th, providing an overview of the white label industry in Canada, including, services, contracting, flow of funds, cash management and regulations.  We also discussed the fundamentals, current state of, and the perceived shortfalls of AML regulations.  We concluded the meeting by discussing the exposure and current/emerging risks in regards to money laundering in the white label, potential mitigation, and the process for further communications/policy development including industry representatives. 

This was a positive meeting from both sides and we will have the opportunity to work with the Department of Finance in defining a solution.  Right now they are looking for clarity of whom ATMIA represents and a picture of the overall industry so they can become more familiar.  ATMIA is working on this and welcomes any volunteers to participate in this effort.

TVA Montreal Interview

In September TVA’s “JE” investigative report will focus, as it is our understanding, on the ATM Industries rules and processes in response to the reporter’s undercover attempt to buy/connect ABMs. ATMIA (Spokesman – Mike Kelso) was directed that the best approach in this interview is to recognize there is no such thing as a flawless industry, however, the ATM Industry has meaningful rules, enforcement of those rules, and is constantly policing ourselves and reviewing ways to improve on the integrity of the system.  This is a highly confident industry with a great deal of integrity that the consumer can have confidence in.  Mike’s core messages were that the controls are in place with the switching rules, and that we are continually working with the government and law enforcement agencies to identify ways to improve processes. Mike also focused on how the Canadian consumers have broad access to cash and banking services through the over 34,000 white-label ABMs, using the talking points put together by ATMIA Canada on “Surcharging = Consumer Choice and Convenience.” 

Best Practices

The board agreed that there needs to be best practices for the white-label industry as it relates to due diligence, AML and counterfeit fund procedures.  It was suggested that a review of the Canadian Code of Practice for Consumer Debit Card Services may be of benefit in this process. It was developed jointly by Government and industry stakeholders including the banks.  It is a voluntary code that the Financial Consumers Agency of Canada monitors.  They monitor to ensure that people who commit to the code actually adhere to it.  However, recommendations will mean nothing in this competitive industry if there is no centralized review or enforcement.  This is when it became apparent that an informal meeting with Mr. Mark O'Connell, President/CEO, Interac Association, would be of great benefit to start the dialog between the two associations.  

Temple Scott Associates (TSA)

As you can most likely tell, the ATMIA Canada Board believes the white label ATM industry could be facing major legislative and regulatory challenges in the months to come. When media and political attention reach a critical mass, legislation and regulation tend not to be far behind – especially when an industry is perceived to be unregulated to begin with. ATMIA believes that close monitoring and early intervention will prevent the industry from facing major operational challenges in the months to come.

The ATMIA Canadian Board agreed that engaging Temple Scott Associates (TSA) to provide legislative and regulatory monitoring services to ATMIA Canada on a month-to-month basis, which includes an overview of the current Canadian issue environment, and their recommended strategies, is an important step for the Canadian membership as the regulation/legislative momentum is now!