Zenón Biagosch, committee director of the Central Bank, has said that the entity is preparing new regulations related to fintech and digital wallets. These are set to be rules on corporate governance standards, internal control processes and risk management.
The announcement was made within the framework of the 10th South American Congress on Prevention of Money Laundering and Financing of Terrorism organized held on September 10 and 11, where the official said the purpose of the regulations is to prevent virtual finances from becoming criminal vehicles due to the fact that they are “highly deregulated”. “These are regulations that ensure that we are in pursuit of transparency,” he said.
Biagosch noted that there are many “unregistered” lenders because they do not use bank credit to operate. “The regulatory change will be aimed at these among others,” he said. Although he stated that there are already regulations from the Central Bank and the Financial Information Unit (UIF), he added that the aim is to continue adjusting with other regulations.
Regarding the fintech companies, the director said that they provide “very heterogeneous services” and that it is “a very unregulated segment”. Due to this, he pointed out that “these companies will demand a very big supervision effort from the Central Bank and the UIF”.
The official also referred to virtual wallets and Payment Service Providers (PSP), which “are already regulated by the Government”. However, he indicated that “it is a much more concentrated segment”.
According to Biagosch, the regulations will target these items because “they make people’s lives easier, as in these times of COVID-19, but this should not lead to misuse that involves laundering maneuvers”.