Representatives from the players in EMV, including a Canadian banker, shared their insights on EMV adoption in the U.S.
From left: Visa’s Kim Lawrence; FIS’s Bastian Knoppers; CPI’s Docia Myer; Canadian banker Stephen Fedor; and Northcard’s Mike Bradley, who moderated the panel.
Canadian institutions have already made the switch to EMV, so Fedor was able to assure the audience that “chip is good.” “It’s good because mag stripe technology is bad—it’s from the 1960s,” he said. “You can’t clone a chip.” In fact, Fedor likened it to the intro of the old television show Mission Impossible—“if you mess with a chip, it implodes.”
Fedor’s bank—CIBC—was the first Canadian bank to adopt EMV. By being first, he said his bank learned a lot, and others learned from it. “While you can learn a lot from the institutions that go first, if you’re the last credit union that converts, you’ll experience a lot of fraud and run the risk of being displaced.” Fedor’s advice: “Be somewhere in the middle.”
Human trafficking, money laundering, trade-based money laundering and terrorist financing all come with their own sets of red flags for financial institutions. In addition, entities such as money services businesses and cash-intensive businesses can be legitimate, but also have potential to be used for illicit activities.