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Catch up on six of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

Lithuanians Balance Digital Payments With Flexibility, Central Bank Survey Says‍

A Bank of Lithuania survey has highlighted evolving payment habits in the country, with 62 percent of consumers favouring payment cards and electronic settlements.

In addition, flexibility is increasing, with more consumers alternating between cash and digital methods.

Barriers to preferred payments have eased in public services, with issues in healthcare and cultural facilities dropping by 19 and 10 points, respectively, over five years. However, more than half of cardholders still face challenges in industries such as hospitality.

Mobile payment apps are widely used, with 68 percent of account holders relying on them. Users making transfers via apps rose to 87 percent, a 22-point jump in a year, while contactless mobile payments increased by nine points to 35 percent.

Fourteen percent of respondents with a payment account reported making payments via phone number. Of these, 90 percent use this method to pay friends and family and 30 percent use it to pay for services provided by individuals, an area where the central bank said it wanted more uptake.

"Payment by phone number allows mobile app users to quickly and conveniently transfer money to people in their mobile phone contact list,” said Vaiva Petrylė, chief economist of the market infrastructure policy department of the Bank of Lithuania.

“We hope that [it] will become popular and payments will be made not only between friends and family members, but also when paying for services to natural persons; for example, paying your hairdresser, beautician or plumber.”

US CFPB Proposes Rule To Stop Data Brokers Selling Sensitive Information

The US Consumer Financial Protection Bureau (CFPB) has a new rule to restrict the sale of sensitive personal and financial information, aiming to prevent misuse of data by scammers, stalkers and foreign actors.

Under the proposal, data brokers handling personal identifiers such as social security numbers and phone numbers or financial details, such as income and debt history, would be classified as "consumer reporting agencies" under the Fair Credit Reporting Act (FCRA).

This designation would entail stricter data accuracy, security and consumer access requirements.

The CFPB highlighted risks associated with the current practices, including national security threats, such as espionage by foreign adversaries, and criminal exploitation of vulnerable populations like seniors.

The rule also seeks to protect law enforcement personnel and domestic violence survivors from being targeted through easily accessible data.

Key provisions include requiring explicit consumer consent for data sharing, restricting sales of sensitive financial data and ensuring accountability for brokers selling personal information.

“By selling our most sensitive personal data without our knowledge or consent, data brokers can profit by enabling scamming, stalking and spying,” said CFPB director Rohit Chopra.

“The CFPB’s proposed rule will curtail these practices that threaten our personal safety and undermine America’s national security.”

Dutch Central Bank Highlights Personal Assessment Requirements Under DORA

The Dutch Central Bank (DNB) has to conduct personal assessments of policymakers at financial institutions to ensure compliance with the EU's Digital Operational Resilience Act (DORA), which is set to take effect on January 17, 2025.

The DNB will evaluate the knowledge and experience of candidates in key ICT risk management areas during suitability assessments.

Candidates may face specific questions about DORA as part of this process, including its core requirements, ICT incident management, resilience testing and the handling of outsourcing risks.

The assessments will also consider candidates’ ability to formulate strategies, make informed decisions and demonstrate competencies such as adaptability and independent judgement.

The DNB clarified that the depth of expertise required will vary depending on the candidate’s role and the institution’s complexity, emphasising a proportional approach in evaluations.

European Central Bank Updates Progress On Digital Euro

The European Central Bank (ECB) has published its on the digital euro preparation phase, which began in November 2023.

The ECB has updated its digital euro scheme rulebook, integrating feedback from consumers, retailers and payment service providers, and has said that a revised draft focusing on user experience and risk management will be completed in early 2025.

User-focused research is ongoing, with the central bank examining preferences for holding limits and the needs of small merchants and vulnerable groups. The results will be published in mid-2025, alongside findings from innovation partnerships exploring advanced use cases, such as conditional payments.

The ECB has also shortlisted providers for digital euro components, with procurement outcomes expected in 2025.

This is happening in conjunction with discussions within the European Retail Payments Board aimed at identifying competition and business models for payment service providers (PSPs) that maximise the benefits and minimise the risks of the digital euro.

The ECB’s Governing Council will decide on issuing a digital euro only after the necessary legislation is adopted by co-legislators in the EU.

The bank plans to release a final progress report on the preparation phase in mid-2025.

BaFin And FIU Issue New Guidance On Suspicious Transaction Reports

Germany’s Federal Financial Supervisory Authority (BaFin) and Financial Intelligence Unit (FIU) have jointly a guidance document aimed at clarifying the compliance requirements for filing suspicious transaction reports (STRs) under the country’s Anti-Money Laundering Act (GwG).

The guidance highlights the principles of "promptness" and "completeness," stressing that STRs must be submitted without delay whenever there are indications of money laundering or terrorist financing, regardless of transaction value.

Institutions are urged to file detailed reports to facilitate effective analysis by the FIU.

This document complements existing BaFin and FIU publications, offering practical advice drawn from regulatory interpretations and past cases.

To avoid fines, institutions are advised to err on the side of caution and file an STR when in doubt.

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