ACH Legal & Compliance Summit


*Indicates Attorney Speaker

Wednesday, November 30

11:00 am – 11:15 am – Opening Remarks

11:15 am – 12:15 pm – Understanding the Basics of Payments Law
Understanding the fundamentals of payment laws and regulations is crucial to understanding how payments work. So is having a clear comprehension of how the laws and regulations interact with one another, particularly when there may be overlap. Which law applies to a payment transaction depends on who the end users are, what kind of institution acts as intermediary, and what form of transaction is used to move the money. The introduction of new kinds of payments service providers and completely new forms of currencies and payments is raising questions about what laws apply to “fintech.” With so many agencies overseeing overlapping aspects of the payments industry, sometimes different agencies might be taking contradictory views about emerging issues. This session delves into these issues and provides an overview of the most significant laws and regulations governing payments, including Uniform Commercial Code Articles 3, 4, and 4A, the Expedited Funds Availability Act and Regulation CC, the Electronic Funds Transfer Act and Regulation E, the CFPB’s authority to act against unfair deceptive, and abusive acts or practices, and recent updates to Regulation J in anticipation of FedNow. The session touches on the rules that structure the Federal Reserve’s payments services, including Regulation J and the Fed’s Operating Circulars. The speaker will also describe the OFAC/Bank Secrecy Act compliance regime that applies to all payments in the U.S.

*Duncan Douglass, Partner, Alston & Bird, LLC

12:15 pm – 1:15 pm – Regulatory Impacts for Faster Payments: Regulation J
Regulation J provides the legal framework for depository institutions to collect checks and other items and to settle balances through the Federal Reserve System. The regulation also specifies terms and conditions under which Federal Reserve Banks will process funds transfers via Fedwire. With the addition of their FedNow service, scheduled to go live in 2023, the Federal Reserve has issued new rules that will govern transfers over the service. This session will provide a general overview of the funds flow, settlement, terminology and parties involved in a FedNow transfer, and how these transfers compare to other similar services. The speaker will also discuss who is covered by Regulation J, key requirements for each party, and the interplay between UCC 4A and Reg E with regard to consumer FedNow transfers.

*Jennifer Aguilar, Senior Associate, Alston & Bird, LLC

1:15 pm – 1:30 pm – Break

1:30 pm – 2:30 pm – Uncovering Security Procedures Under UCC 4A
While UCC 4A offers a fairly detailed definition of security procedures, it still leaves several questions. There's a perceived ambiguity between parties as to what terms can be altered by agreement, what the term “commercially reasonable” means, and what enforcement methods exist should a dispute between parties arise. This session delves into error protection, verification, question of law and authorizations.

*Scott Jones, Partner, Adams & Reese, LLP

2:30 pm – 3:30 pm – Electronic Signatures in E-Commerce and Digital Payments
When the Electronic Signatures in Global and National Commerce Act was signed into law over 20 years ago, in the early days of the internet, no one saw how pervasive the need for the Act would become. As technology has changed, so too has the need to amend and more explicitly define the requirements under the Act, including the provisions related to maintaining documents and authorizations, how signatures obtained via certain types of software including Adobe products are governed, what might be considered proof that a party can produce to show that someone electronically signed a document and how potential risks related to compliance and even reputation might be impacted. The speaker in this session reviews the regulation and how it has changed over time – and might continue to change in the future – to provide attendees with a clear understanding of the importance of this law.

*Margot Tank, Attorney, DLA Piper

3:30 pm – 4:30 pm – Cryptocurrency: Ways to Navigate, Laws & Regulations
As the conversation (and sometimes debate) continues around Cryptocurrency regulation, having a clear understanding of the concepts surrounding this important topic is critical. All payments industry participants must be aware of the potential, opportunities, and concerns surrounding crypto. The speaker in this session offers a brief explanation of the history of cryptocurrency, the current and emerging legislative environment, regulation at the state and federal levels and potential use cases.

*Angela Angelovska-Wilson, Co-Founder and Chief Legal Officer, Sila, Inc.

Thursday, December 1

10:30 am – 10:35 am – Welcome Back and Day One Recap

10:35 am – 11:35 am – The Web of Regulation
The seemingly endless alphabet soup of payments regulators can lead to confusion and even angst. Which agency governs which organization, what entity can impose sanctions or create enforceable rules, what types of oversight fall under the purview of what regulator? It’s enough to confound any payments professional seeking out a clear plan to help guide their organization. This session provides attendees with an understanding of who regulators are, what they do, and the extent of the regulatory reach. The speaker provides advice on how best to create procedures to respond and relate to regulatory bodies while communicating the need for understanding changing regulatory requirements.

*Matthew C. Luzadder, Managing Partner Chicago Office, Kelley Drye & Warren LLP

11:35 am – 12:35 pm – Payments Regulations in the Age of AI and Digital Currency
As the payments business continues to change so does the nature of the regulatory environment related to new and emerging payment technologies. This session explores the implications of decentralized finance methods – including AI, stablecoin, cryptocurrency, and smart machines – on payments as well as how these technologies might impact an organization’s risk profile. The speaker also reviews some of the new advancements that are not necessarily ready for “regulatory prime time” and considers regulatory statements that have been filed but not yet acted upon.

*Ted Claypoole, Partner, Womble Carlyle

12:35 pm – 1:00 pm – Break

1:00 pm – 2:00 pm – Payments After Dark: Examining High Risk Originators
Financial institutions make business decisions to originate ACH transactions for clients, and it is incumbent on them to conduct appropriate due diligence and related risk management. With what could be considered high risk activity, it is imperative that the FI implements a robust and holistic risk management program throughout the life cycle that has active involvement and commitment across the organization. Online gaming, cannabis, adult entertainment, and other transactions are examples of industries where banks have proceeded with caution. These industries could represent potential threats to payment systems so, as a result, various payment systems rules have been defined, all with the goal of protecting the integrity of the system as well as limiting possible risk. Speakers in this session discuss what constitutes “high risk” payments and the types and magnitude of transactions that give rise to such risks. Understand who needs to be involved and why, what process elements need to be considered, and what are potential client showstopper questions.

*Ellen Berge, Partner, Venable, LLC

2:00 pm – 3:00 pm – Strategies for Contract Negotiations in Payment
Contracts and agreements are a cornerstone of the payments industry. Whether between financial institutions and a business client, an FI and a service provider, or between fintech partners, clearly articulating the terms of the agreement is critical to protect an organization while maintaining the integrity of the payment system. This session examines how contracts and agreements comprise the foundation of the ACH Network, reviews potential concerns from different perspectives of all involved, and details best practices to define requirements by party and tactically ensure the agreements or contracts are addressing these issues. Speakers also discuss methods to explain to clients that obligations are pushed through to them and the implications in case the terms are not understood or violated.

*Jennifer Aguilar, Senior Associate, Alston & Bird, LLC
*Cassandra M. Haddock, Senior Vice President & Associate General Counsel, KeyBank

3:00 pm – 4:00 pm – Looking Through the Lens of Consumer Understanding
This session examines how to provide enough information to allow consumers to make Informed choices for faster payments. Changes in the industry are occurring at a rapid pace, and at the center of that change is the convergence of payments innovation, marketing, and consumer understanding. Helping consumers make informed decisions while demonstrating that not all forms of payments are the same is critical, particularly while considering decisions from the CFPB perspective, disclosure requirements, consumer regulations and buyer protection, differences between credit push and debit pull, and what “irrevocable” really means. Speakers provide a foundational perspective – from the way products are marketed and how to present information about payments and payment choices – and attendees come away from this session armed with information about how to use the looking glass to help clients make informed decisions.

*Mercedes Kelley Tunstall, Partner, Cadwalader, Wickersham & Taft LLP

4:00 pm – 4:10 pm – Closing Remarks