Italy’s central bank orders AMEX halt
(12 April 2010 – Europe) The Bank of Italy has ordered a stop to the issuance of all new credit cards by American Express until the company improves compliance laws combating money laundering.
The central bank said that it was concerned that supplementary cards were being issued by the credit card company with sufficient checks taking place to ensure they were not being used for money laundering operations.
Bank of Italy also said that it had concerns about the way interest rates were calculated by the company and that they could violate the nation’s anti-usury laws.
The halt to credit card supply does not apply to existing cards already issued by the company.
American Express acknowledges it has received a report following an inspection from the Bank of Italy, American Express spokeswoman, Joanna Lambert, said in an e-mail to The Associated Press.
As a result, American Express Italy is currently implementing an upgrade of its information technology systems and other procedures, in order to adhere more closely to the regulations applicable to payments service providers and financial intermediaries, Ms Lambert added.
Ms Lambert also said that American Express Italy will temporarily suspend issuance of new cards from April 12th and will resume card issuance as soon as these upgrades are completed, as established by the Bank of Italy.
Bank of Italy also said that it had concerns about the way interest rates were calculated by the company and that they could violate the nation’s anti-usury laws.
The halt to credit card supply does not apply to existing cards already issued by the company.
American Express acknowledges it has received a report following an inspection from the Bank of Italy, American Express spokeswoman, Joanna Lambert, said in an e-mail to The Associated Press.
As a result, American Express Italy is currently implementing an upgrade of its information technology systems and other procedures, in order to adhere more closely to the regulations applicable to payments service providers and financial intermediaries, Ms Lambert added.
Ms Lambert also said that American Express Italy will temporarily suspend issuance of new cards from April 12th and will resume card issuance as soon as these upgrades are completed, as established by the Bank of Italy.
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