by Marta Andreeva

The public grasped how big of a deal beneficial ownership is and how abuse of legal persons for money laundering and terrorist financing (ML/TF) affects us all perhaps in 2015 with the Panama Papers scandal. For the compliance geeks and practitioners, this hasn’t perhaps come as such a surprise, albeit the scale of it has undoubtedly shocked everyone. The hype surrounding scandals that involve faces familiar from Hollywood or the political arena makes topics from the anti-money laundering (AML) world the news headlines.

The idea of transparency of company ownership, however, isn’t new. The global money-laundering watchdog – the Financial Action Task Force (FATF) is the first international organisation to set up standards on beneficial ownership in 2003. In accordance with FATF Recommendation 24, countries should take measures to prevent the misuse of legal persons for ML/TF, and ensure that there is adequate, accurate and timely information on beneficial ownership and control of legal persons that can be obtained or accessed in a timely fashion by competent authorities. Continue reading…

The Basel Committee on Banking Supervision has put in place its cemented Basel Framework. The framework unites all of the Basel Committee’s worldwide standards for the regulation and oversight of banks and details these on its website under a new section. In April 2019, the Committee formulated a draft variant of the solidified Basel Framework. In it, the standards were presented in a newly developed format that concentrated on revamping existing requirements, not on providing new prerequisites or changing the principles that were previously agreed upon and published by the Basel Committee. Continue reading…

The Financial Conduct Authority (FCA) has recently brought attention to the fact that it is going to disallow the mass marketing of speculative mini-bonds to retail customers. The ban by FCA is said to be introduced without consultation and is expected to go into effect on January 1 2020 for a duration of 12 months. As of recent, this is a restriction, but the FCA also intends to discuss the formation of lasting rules concerning the ban. Continue reading…

The Bank of England (the Bank), Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have today published a shared policy summary and co-ordinated consultation papers (CPs) on new requirements to strengthen operational resilience in the financial services sector. Building the operational resilience of firms and Financial Market Infrastructures (FMIs) is a shared priority for the three supervisory authorities. The co-ordinated CPs build on the concepts set out in the operational resilience Discussion Paper published by the authorities last year, addressing many of the proposed policy changes based on the responses we received. Continue reading…

Michel Klompmaker

On November 14, the first edition of the Augmenting Customer Due Diligence (ACDD) event was held at the Jaarbeurs in Utrecht. Compliance is certainly not a boring field and you must be fully familiar with what is possible and what is not allowed. No financial institution, large or small, appears to be immune to the threat of fraud or money laundering. This event was meant to examine how data and innovation can accelerate progress towards common goals, such as cost reduction and streamlining of the CDD (KYC) process. Continue reading…

The Board of Directors of the Bank for International Settlements (BIS) appointed Benoît Cœuré as Head of the new BIS Innovation Hub on Sunday, set up to foster international collaboration among central banks on innovative financial technology. Mr. Cœuré will start his new role on 15 January 2020 for a five-year term. Mr. Cœuré has since 2013 chaired the Committee on Payments and Market Infrastructures, the global standard-setter for payment, clearing and settlement services. He also led the Group of Seven working group on global stablecoins and co-chairs a related Financial Stability Board working group. Continue reading…

The Basel Committee on Banking Supervision published today two consultative documents related to Pillar 3 disclosure. The first document proposes a set of revised disclosure requirements related to the market risk framework finalised in January 2019. The second document consults on voluntary disclosure templates related to banks’ sovereign exposures. Revisions to market risk disclosure requirements set out a set of adjustments to the Pillar 3 templates for the revised market risk framework to reflect changes introduced in Minimum capital requirements for market risk in January 2019. In addition to these changes, the Committee proposes to enhance disclosure of the trading desk structure of banks using the internal models approach by reinforcing a materiality threshold to determine the scope of individual trading desks subject to the requirement. Continue reading…

The Monetary Authority of Singapore (MAS) and the Bank for International Settlements (BIS) recently launched the BIS Innovation Hub Centre in Singapore. This is the BIS’s first expansion of its global footprint in 17 years. The BIS Innovation Hub will foster innovation and greater collaboration amongst the central banking community globally. It will enhance the understanding of financial technology, and aid the development of innovative solutions to benefit and enhance the financial system. The BIS has also recently established Hub Centres in Hong Kong SAR and Switzerland. Together, the Centres will identify and develop in-depth insights into critical trends in technology affecting central banking; develop public goods in the technology space to improve the functioning of the global financial system, and serve as a focal point for a network of central bank experts on innovation.  Continue reading…

by Michel Klompmaker

On the 7th of November, the third edition of the Risk & Resilience Festival was held at the University of Twente in Enschede, which was organized by the university, the Society for Risk Management (GvRM) and Public Risk Management Organization (PRIMO). The theme surrounding this riveting event was “Risk meets Resilience for a Sustainable Future”. The overarching theme was also split into eight subthemes, which were resilience, vision & strategy, legal & compliance, technology, financial risks, human factor, operations & safety and data analytics. Around 100 speakers attended the event to share their knowledge and experiences together with about 750 people. Highlights of the event included three keynote speakers and the handing out of awards.

Continue reading…

by Costanza Matteuzzi & Aldo Pedico

In our first part of the article that has been published last week, we discussed the role of the European Union in the field of criminal law, company and personal needs, the requirements of laws, regulations and standards and the implications. Now in this second part, we will discuss the cybersecurity quality system, the paradigm, certification of the cybersecurity quality system process and finally end with a conclusion to our paper.  Continue reading…