FFIEC Anti-Money Laundering (AML) Requirements – The ATMIA Sponsoring Financial Institutions and ISO Committees are working towards a goal to collaboratively agree upon a position on the current requirements as outlined by the FFIEC for all to adopt.  As part of these discussions, it was decided that ATMIA discuss along with legal counsels representing the ISO sector the possibility of engaging an independent outside firm to listen to comments from all sectors of the industry with the goal to assist in the formation of a more industry wide perspective and provide an independent paper on behalf of ATMIA, readdress the true delineation of the responsibilities of the settlement bank versus the sponsoring bank. The consensus of the group was that privately owned ATMs have to settle their funds to a bank, and the contention is that the settlement bank is where the true relationship lies, and the principle auditing should be done at that point, as the settlement bank is to ensure the purpose of the transactions flowing through the account, and has to address those risks in their BSA program. 

2007 ATM Legislation – ATM Legislative Monitoring Portal
(for login information contact lana@atmia.com)

Beneficial Legislation – please send letters of support to your representatives to make sure that these bills pass:

• States Allowing International Surcharge:  Alabama , Arkansas, California, Georgia, Idaho, Louisiana, Maine, Mississippi, Montana, Nevada, Tennessee, Texas, Utah (Effective April 30, 2007), Washington and Wyoming

• Pending States 

• Colorado SB 155 – This bill was sent to Governor Bill Ritter (D), March 20th.  Once the Governor receives this bill he will have 10 days to sign the measure or it will become law without his signature. The Governor is expected to sight this bill as it has passed both chambers unanimously. 
• Florida HB 249 and SB 744 – Passed House Financial Institutions Committee unanimously and was referred to the House Jobs and Entrepreneurship Council on March 9th
• New York SB 2747 – Has been received with open arms by both the Senate and Assembly

• Increased Criminal Penalty Bills

• New York AB 541 and SB 856 – Providing that buildings housing ATMs are included within covered buildings for purposes of the crime of burglary in the second degree. 
• South Carolina HB 3199 and SB 270 – Persons convicted of robbing customers using this machine are guilty of a felony and may be sentenced to 20 years in prison

Adverse Legislation – please send letters of opposition, along with the ATMIA 911 Position Paper to your representatives to make sure that these bills do not pass:

• Georgia ATM Safety Study Committee   
• New Jersey A.B.  2521; A.B.  3288; S.B.  1072
• New York A.B.  1671

New York Lobbyist – ATMIA has retained Marsh & Associates, P.C. for general governmental affairs representation in New York for the 2007 calendar year.  Marsh & Associates helps identify bills, meet with legislators on our behalf to communicate our position, and has great credibility and constant contact with the New York legislative staff.  Currently, there is 18 active bills in New York. 

2007 Debit Legislation – Debit Legislative Monitoring Portal
(for login information contact lana@atmia.com)

Daveed Schwartz and Deborah Thoren-Peden of Pillsbury Law offices are the new chairs of the Debit Council Government Relations Committee. 

The Federal Trade Commission just came out with the first consent order on gift cards saying their gift card program was misleading and fraudulent - Kmart Settles With FTC Over Gift Card Sales Practices.  The complaint alleges that respondents have represented that the Kmart Gift Card never expires. In truth and in fact, after 24 months of non-use, the application of the Kmart Gift Card dormancy fee causes any Kmart Gift Card valued at less than $50.40 to expire. The complaint alleges that the representation that the Kmart Gift Card never expires is false and misleading.  This could be setting a precedent and become and invitation for lawsuits on bank issued cards.  As the agreement will be subject to public comment for 30 days, beginning March 12 and continuing through April 10, it was suggested that members of the Debit Council compile a sample response that all can use to address this issue during this comment period.  Volunteers are requested for this.  If you would like to send your own comments, they should be addressed to the FTC, Office of the Secretary, Room H- 135, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.

New Litigation Update: Fair Credit Reporting Act Class Actions Seek Staggering Damages Awards – POS vendors who have supplied equipment and/or related software to retailers and restaurants that accept credit or debit cards and provide electronically printed receipts to the cardholder at the point of sale may have an interest in following these developments.  VISA, MasterCard, and certain financial institutions may also be interested in this issue. 

Since this Alert was issued, the number of class action lawsuits filed against retailers and restaurants under the Fair Credit Reporting Act had grown from just over 50 to over 100.  Though to date no POS vendor, credit card association, or financial institution has been named as a defendant in these actions, such entities may at some point be the subject of third-party subpoenas for documents and testimony in certain of these actions.  Accordingly, it may be worthwhile for you to review this litigation trend.

There are several bills currently moving specifically dealing with Abandoned Property, Escheats and Gift Cards and Certificates.  Those interested are requested to contact lana@atmia.com, to join the Debit Council Government Relations Committee. 

Debit Council Upcoming Initiatives

• Schedule a conference call to review bills of concern and set action plans
• Coordinating a group to work on a PCI Mapping
• Coordinating a group to work on Q&A for PCI DSS best practices
• Coordinating a group to work on an all encompassing handbook
• Coordinating a PCI workshop in conjunction with the ATMIA Fall Security Event

ATMIA Canada

• Continuing to work with MasterCard on
  • allowing surcharging at ATMs in Canada
  • ATM Support Fees
• Continuing to work with Interac on
  • requesting an annual review of the partial dispense sanctions
  • providing for an ISO group so the voice of the acquirers could be heard outside of financial institutions 
• ATM Fee Politics – reviewing options such as
  • Preparing a position paper and testify on behalf of the white labels in front of the commons committee
    
  • turning on the Public Relations “machine” so that in the “court of public opinion” the ATM industry gets a fair hearing 

  Opportunities to Serve the ATM Industry – We need your time or treasure – thank you!