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North America Paytech Regtech Trending

Only 8 US States Have Fully Adopted MTMA Regulations as Payments Compliance Challenges Remain

The emergence of alternative payment methods has caused confusion in the US regulations space. With each state responding to innovations differently, achieving overarching compliance is likely to remain a challenge for the foreseeable future according to Vixio Regulatory Intelligence, the provider of global regulatory and business intelligence to the global gambling and payments industries.

The findings stem from proprietary data generated by broadened coverage in the US following enhancements to Vixio’s Horizon Scanning tool. It enables users to monitor and track global regulatory change in payments. The SaaS solution now covers all 50 states in the US, as well as the 14 territories under US federal government control.

Roseanne Spagnuolo, chief content officer, Vixio
Roseanne Spagnuolo, chief content officer, Vixio

Roseanne Spagnuolo, Vixio’s chief content officer, said: “Our data show why the US is one of the payments industry’s most fragmented and heterogeneous regions from a regulatory standpoint. This makes it a complicated landscape in which to do business and to remain ahead of compliance obligations. It’s not just one jurisdiction – it’s 50 individual regulators that move at their own pace and regulate as they see fit.”

Although the Model Money Transmission Modernization Act (MTMA) is gaining momentum with state regulators in the US, there is no consistent adoption of the Act. Vixio’s Horizon Scanning shows that:

  • Eight states have fully adopted the MTMA regulations
  • 27 states have either made no movement or are going in different directions
  • 10 states have had a partial adoption of the model law
  • Five states also currently have additional pieces of MTMA-related legislation in their legislatures under consideration

The increasing volume of regulatory change is making it harder and more time-consuming for payments companies to navigate. Vixio’s Horizon Scanning tool’s dashboard allows compliance teams to filter results and assess regulatory impact by type and volume. Furthermore, they can also build a custom watchlist. As a result, any analysis is exportable for reporting to key stakeholders.

Vixio analysts assess, analyse and filter out the noise to provide compliance teams with actionable insights. Separately, US State-by-State market entry reports also offer a comprehensive overview of all 50 US states. They provide information on the regulatory framework, requirements for a money transmitter licence and the authorisation processes in each state. This further helps compliance teams make market-entry decisions and upskill on jurisdictions.

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