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Rockin’ E-Money on Gibraltar
5 things about the rock
something new or out of the norm. Being open and upfront about what we’re doing enables the FSC—and us—to be confident that appropriate controls are in place prior to launching new initiatives.”
But, does too much familiarity breed loose regulation or loose enforcement?
Paschini says no. “Consultation
is a good thing,” he explains. “The e-money industry is young, and if
a regulator takes a strict interpreta- tion of laws that are written for the whole of the EU, the regulator can end up misapplying the law at the product level,” referring to the significant variations in the types
of products encompassed by e-money. “Explaining the intended use of a specific type of prepaid card, for example, helps the FSC differentiate between how the products are used, so it helps them provide appropriate interpretations within the law.”
Adds David Wilford, Wave Crest gen- eral counsel, “From an enforcement perspective, at minimum, there’s
an annual scheduled on-site audit by the FSC that takes a full week. During this process, the financials are audited, as well as procedures and practices. The FSC isn’t check- ing just to see you have an AML manual; they want to see the appli- cation of your AML policies and pro- cedures, and they want examples. Their inspections are very proactive.”
And Barrass is adamant. “Being accessible, non-bureaucratic or
1 The “Rock” isn’t solid. Its interior includes more than 140 caves, the largest of which houses a theater.
General Dwight D. Eisenhower directed Operation Torch,
World War II’s first major U.S./British combat operation,
from his headquarters in a small chamber in the 2 heart of the Rock.
3 The Prudential Insurance Company has used the Rock of Gibraltar in its logo since the late 1800s.
About 250 tailless Barbary apes, which are actually 4 monkeys or macaques, live in the Upper Rock area
of the Gibraltar Nature Reserve—the only place they
exist on the European continent.
5 The Rock of Gibraltar is one of the Pillars of Hercules, the other pillar be- ing Mons Abyla or Jebel Musa on the African side of the Strait of Gibraltar. In ancient times the two points marked the limit to the known world.
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“It’s the beauty of the jurisdiction,” says Spier. “In most jurisdictions, you never meet your regulator, and you can’t establish a relationship. Here, we know each other inside out, and that builds trust, which goes both ways.”
Miles Paschini, group president, Wave Crest Group, echoes Spier’s
sentiments, “They’re willing to discuss issues as they come up, and they’re willing to listen.”
“Their approach can be conserva- tive, but it’s also about full dis- course and openness,” adds Kriya Patel, European sales director for The Bancorp. “That means we need to notify the FSC if we’re doing
Eisenhower statue: spirit of america / Shutterstock.com