There is a “growing dissonance” between the ways financial technology (fintech) businesses are regulated in the EU and the UK, according to the compliance boss of Paysafe, a payment services firm.
Paysafe is UK-headquartered but shifted much of its European business functions to Ireland before Brexit. Its chief risk and compliance officer Richard Swales, speaking at a recent industry event in Belfast, said firms such as Paysafe increasingly need to adopt different strategies for the EU and UK.
“As a result of what’s happened with Brexit, what you find is that there is a growing dissonance between regulation controls and processes between the UK and Europe, which means that there are gaps in the way that things work,” he said.
This is particularly true in risk management and complying with anti-money-laundering (AML) rules, he added, and the use of biometric data to verify customers’ identities.
“Technically the privacy rules are different between Europe and the UK. We then need our lawyers, our AML colleagues, to help us understand how can we navigate that dissonance between the regulations.
“Can I deploy one solution across the board, or do I need to develop two? You don’t want to get caught in a trap where you’re the devil if you do and the devil if you don’t.”