《CROSS-BORDER ELECTRONIC BANKING:CHALLENGES AND OPPORTUNITIES:SECOND EDITION》

CHAPTER 1INTERNATIONAL FUNDS TRANSFERS：MECHANISMS AND LAWS（Benjamin Geva）1

Introduction1

Ⅰ.International Large Value Transfers1

（a） Credit transfers1

（b） International credit transfer4

（c） Concurrent international transfers and Herstatt risk7

Ⅱ.Large Value Transfer Systems： Components， Risks and Models9

（a） LVTS components10

（b） LVTS risks13

（c） LVTS national models16

（i） United States16

（ii） Switzerland18

（iii） United Kingdom19

（iv） Japan19

（v） Canada20

（vi） France21

（vii） Germany22

（viii） The European Union—Cross-border Transfers23

Ⅲ.The Law of Credit Transfers： Selected Comparative Aspects25

（a） Basic concepts： characterisation， irrevocability and discharge27

（b） Allocation of risks： default by the beneficiary’s bank29

（c） Allocation of risks： default by a bank other than that of the beneficiary30

Conclusion34

CHAPTER 2WHOLESALE FUND TRANSFERS—UCC ARTICLE 4A（Alvin C.Harrell）35

Ⅰ.Introduction and Scope—UCC Article 4A35

Ⅱ.Article 4 Definitions and Scope36

（a） Fundamental concepts36

（b） Scope—payment order must be unconditional38

Ⅲ.Liability for Errors and Unauthorised Orders40

（a） Authority to originate40

（b） Security procedure41

（c） Commercially reasonable procedure required42

Ⅳ.Obligations of a Bank Accepting a Payment Order43

（a） In general43

（b） Misdescription of beneficiary43

（c） Preemption of other state law claims45

Ⅴ.Transmitting the Payment Order47

Ⅵ.Fees and Settlement48

Ⅶ.Payment48

（a） Payment in general48

（b） Payment and discharge between banks49

（c） Obligation of beneficiary’s bank to pay beneficiary50

（d） Payment to the beneficiary51

（e） Payment and discharge51

Ⅷ.Miscellaneous Article 4A Issues52

（a） Variation by agreement or funds-transfer rule52

（b） Effect of creditor process or injunction53

（c） The bank-customer relation54

（d） Rate of interest55

（e） Choice of law55

（f） Statute of limitations56

Ⅸ.Summary and Conclusions UCC Article 4A57

Ⅹ.Regulation J Subpart A： Collection of Checks Through Federal Reserve Banks57

ⅩⅠ.Regulation J Subpart B： Fedwire59

（a） Scope of Subpart B59

（b） Impact of Subpart B60

ⅩⅡ.Federal Choice of Law Provisions61

ⅩⅢ.Wire Transfer Monitoring Rules62

ⅩⅣ.The Treasury “Travel Rule”64

ⅩⅤ.Conclusion65

CHAPTER 3DEMATERIALISATION OF SHIPPING DOCUMENTS（Paul Todd）70

Ⅰ.Why Dematerialise？70

Ⅱ.Electronic Bills of Lading73

Ⅲ.Replacing the Document of Title： Property and Privity Problems75

Ⅳ.The CMI Model78

Ⅴ.Further Comments on the CMI Model84

Ⅵ.An Alternative Model： Bolero84

Ⅶ.Conclusion87

Ⅷ.A Note of Caution88

CHAPTER 4 THE BOLERO SYSTEM（Robert Caplehorn）91

Introduction91

Bolero and Traditional EDI93

The Bolero.net product93

The core messaging platform （inc.diag.）94

Digital signatures （inc.diag.）95

Public key certificates96

Interoperability and standards97

The Bolero Contractual Structure （inc.diag.）97

Enrolment99

LegalBackground99

Legal Requirements for Writing100

Admissibility of Electronic Evidence102

The Transfer of Goods and Other Contracts104

Title registry （inc.diag.）104

Taking security107

Choice of Law and Jurisdiction107

Conclusion108

CHAPTER 5PAYMENT SYSTEMS， DATA PROTECTION AND CROSS-BORDER DATA FLOWS（Jan M.A.Berkvens）109

Introduction109

Payment Transactions109

The Function of Modern Payment Systems110

General110

Banks110

Problem defined in more detail111

Applicability of Privacy Legislation112

General112

Personal data112

Handling of personal data114

Controller116

Payment Transactions and EC Directive116

General116

Personal data117

Controller118

Processor118

Processing119

Auxiliary data （aids）119

Scope of the Directive119

Discussion of Various Articles of the Directive120

Article 7120

Article 8122

Article 8（7）122

Articles 1（2） and 4122

Article 17123

Article 25124

Article 26126

Direct Marketing128

General128

Splitting128

Consequence of splitting128

Secondary use of data128

Conclusion131

APPENDICES TO CHAPTER 5133

A Model Clauses for use in Contracts Involving Transborder Data Flows （International Chamber of Commerce）133

B Draft International Safe Harbor Privacy Principles Issued by the US Depart-ment of Commerce139

CHAPTER 6—CONSUMER ELECTRONIC BANKING（Chris Reed）143

Ⅰ.Introduction143

Ⅱ.Opening a New Account145

（a） Customer identification145

（b） Cross-border collection of customer information146

（c） Making the account contract147

Ⅲ.Providing Account Services148

（a） Access to account information148

（b） Mandate for account transactions150

（c） Performing account transactions152

（i） Basic obligations152

（ii） Cross-border transfers153

（d） Proving the payment message154

Ⅲ.Electronic Cash Products155

Ⅳ.Controls on Customer Terms and Conditions156

（a） Self-regulation157

（b） Legislative controls161

（i） General consumer protection legislation161

（ii） Specific legislation162

Ⅴ.Conclusions—The Future Development of Consumer Electronic Banking164

CHAPTER 7—PAYMENT SYSTEMS FOR E-COMMERCE（Trystan Tether）167

Introduction167

Desirable Features of an E-commerce Payment Mechanism168

The current dominance of the credit/debit/charge card169

How Conventional Payment Cards Work169

Connected Lender Liability in the UK173

The Problems with Conventional Payment Cards174

Cost174

Limitations on who can receive payment using Conventional Payment Cards176

Limitations on who can use Conventional Payment Cards to make payment176

Lack of anonymity177

Security177

Who bears the security risk in Conventional Payment Card misuse situations？178

The Opportunity for Alternative Payment Systems181

Two different types of systems which have developed181

A typical account-based system183

The advantages of an account-based system183

Money laundering Regulations compliance188

A Typical Cash-Based System190

What kinds of system exist at present？194

The advantages of a cash-based system194

Complications for a cash-based system196

Conclusion198

CHAPTER 8—ELECTRONIC MONEY（Laura Edgar）201

Introduction201

What is electronic money？202

How does electronic money work？202

Smart cards203

Software Systems203

Regulating the Issuers of Electronic Money204

Redeemability205

Supervisory regime206

Money Laundering209

The Contractual Relationship210

Communication of Contractual Terms211

Right of withdrawal213

Information subsequent to a transaction213

Securing storage of electronic money213

Loss and fraudulent use of electronic money214

Obligations on the issuer216

Security breaches and technological failures217

Customer Data218

Conclusions219

CHAPTER 9THE COMPUTERISATION OF THE SECURITIES MARKETS： FROM SECURITIES TO INTERESTS IN SECURITIES（Dr Joanna Benjamin）223

Introduction223

The Impact of Collaterisation224

Securities Settlement225

Property Rights in Interests in Securities228

Transfers229

Securities Collateral231

Conclusion232

Index235