2018/2019 Edition of the Global Regulatory Update

Treasury and Trade Solutions 8 established sector-by-sector, beginning with banking, energy, and telecommunications. It is expected that implementation will be phased out with the aim that all major banks will make data available on credit and debit card, deposit, and transaction accounts by 1 July 2019, and mortgages by 1 February 2020. All remaining banking institutions will be required to implement Open Banking around 12 months after the major banks, with the government noting that the Australian Competition and Consumer Commission (ACCC) will be empowered to adjust timeframes if necessary. Japan as part of its Growth Strategy (published last year for the G20) identified open innovation between financial institutions and FinTechs as one of the priority areas. Japan amended its Banking Act to define Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs). As part of the amendments 80 banks must introduce Open Application Programming Interface (APIs) by June 2020. The Canadian government announced it would be conducting a review into the merits of introducing open banking as part of the federal budget which was published 27 Feb 2018. A central part of the review will be to see how open banking measures up to consumer privacy, data security and financial stability. There are also similar Open Banking developments in other parts of the world, for example in Mexico (covered in the LATAM section below). Opportunities for Citi and for Citi’s clients In line with the spirit of both UK Open Banking and the E.U.’s PSD2 banks in the corporate space have already been seizing the requirement to open up access to data as an opportunity to offer a more convenient service offering to treasury departments. Citi for example launched a global API Developer Hub to unlock Open Banking. Citi also launched CitiConnect API which allows our treasury clients to directly connect with Citi to access payment initiation, payment status, and account balance inquiries services using their own Treasury Workstations or Enterprise Resource Platform (ERP) resulting in convenience, as well as potential cost savings and reduced risk. In addition, the combination of payments legislation (such as PSD2) overlaid with Open Banking creates an opportunity for market infrastructure to emerge that can enable direct access to bank accounts for collections, as a Request To Pay (RTP) scheme. Citi continues to work with the UK Open Banking Implementation Entity and regulators around the globe to drive positive development in open banking and to deliver payment system innovations that work for both consumer and business users. On 4 June 2018 Citi announced that is has successfully enrolled as a Payment