FATF Discusses New Rules for Credit Card and Online Payments
The Financial Action Task Force (FATF), a global organization that fights money laundering and terror financing, is thinking about new rules for credit card and online payments. These rules might need more information to be shared, like the recipient’s name and banking details.
India supports these changes because they want transactions to be clear and honest, but they also want to keep things private and not make it too expensive for businesses. The Indian government and the Reserve Bank of India (RBI) are pushing for these new rules.
Big payment companies like Visa and MasterCard are talking with FATF about these changes. They are worried that the new rules might make them lose customers and cost more money to follow. FATF is still talking with everyone involved, and the next big meeting will be in Mumbai, India, in April 2025.
Doubts Revealed
FATF -: FATF stands for Financial Action Task Force. It is a group of countries that work together to stop bad things like money laundering and terror financing.
money laundering -: Money laundering is when people try to hide money they got from doing illegal things, so it looks like it came from legal activities.
terror financing -: Terror financing is when people give money to support terrorist activities, which are violent acts meant to scare people.
disclosures -: Disclosures are pieces of information that must be shared openly, like names and banking details, to make sure everything is transparent and legal.
compliance costs -: Compliance costs are the expenses companies have to pay to follow new rules and regulations.
Visa and MasterCard -: Visa and MasterCard are big companies that help people make payments with credit cards and online.
Mumbai -: Mumbai is a big city in India where important meetings and events often take place.
