ING announced that it has entered into a settlement agreement with the Dutch Public Prosecution Service (DPPS) relating to previously disclosed investigations regarding various requirements for client on-boarding and the prevention of money laundering and corrupt practices. Under the terms of the agreement ING has agreed to pay a fine of €675 million and €100 million for disgorgement.
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In a case brought by the Financial Conduct Authority (FCA), five individuals have been sentenced to a total of 17.5 years’ imprisonment for their roles in a share fraud carried out through a series of boiler room companies which led to the loss of more than £2.8m of investors’ money. The sentencing of five defendants was concluded today at Southwark Crown Court. The sixth defendant, Michael Nascimento (DOB 28th June 1977), will be sentenced on the 14th September 2018. He was the controlling mind, instigator and the main beneficiary of the fraud.
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In his speech, Luis de Guindos, Vice-President of the European Central Bank (ECB), reviews the economic developments in the euro area, explains the recent monetary policy decisions of the ECB and reflect on the necessary reforms of Economic and Monetary Union, or EMU: Economic growth in the euro area remains solid and broad-based, as confirmed by the latest data. Preliminary figures show that real GDP grew by 0.4% quarter-on-quarter during the second quarter of 2018. In the first half of 2018, growth weakened from its very high rates of last year, partly reflecting lower exports, compounded by temporary supply-side constraints at national and global level.
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 An International Monetary Fund (IMF) staff team, led by Björn Rother, visited Tunisia to discuss the authorities’ policy plans under the Fourth Review of Tunisia’s economic reform program supported by a four-year IMF Extended Fund Facility (EFF) arrangement. At the end of the visit, Mr. Rother issued the following statement: “The Tunisian authorities and the IMF team reached a staff-level agreement on the policies needed to complete the fourth review of Tunisia’s EFF. The Tunisian authorities emphasized their intention to continue to act decisively to contain the budget deficit, which would allow the IMF’s Executive Board to consider the Fourth Review at the end of September. Completion of the review would make available SDR 177 million (about US$257 million), bringing total disbursements under the EFF to about US$1.5 billion.
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In light of the difficulties faced by European farmers affected by drought this summer, the European Commission continues acting to provide practical support to the sector. Additional flexibility will be granted to help farmers provide sufficient feed to their animals. The European Commission presented today an additional package of actions aimed at increasing the availability of fodder resources for livestock, one of the main challenges faced by farmers dealing with the impact of drought. This package complements the measures already announced early August.
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by Michel Klompmaker
We recently had an interview in Brussels with Aurélien Slodzian, CEO and Peter Buelens, president of the Board and both co-founders of OPEX Alliance. OPEX Alliance is a Brussels-based start-up that developed a cloud-based software platform through which companies and service-organizations can identify how well – or how badly – they manage the levers to become ‘operational excellent’ (OPEX). In addition, the platform enables users to evaluate in this way, every organizational unit, compare their scores, monitor progress and assign and follow-up initiatives for improvement. The method can be used by every type of organization, regardless of its size.
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As the UK prepares to leave the EU, FCA solo regulated firms should consider if or how they will be affected and what action they may need to take. Firms need to make sure they understand the implications of Brexit and plan accordingly. Passporting currently allows firms authorised in an EEA state to conduct business within other EEA states based on their ‘home’ member state authorisation.
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Greece has successfully concluded a three year European Stability Mechanism (ESM) stability support programme with its place at the heart of the euro area and European Union secured. The successful conclusion of the programme is a testament to the efforts of the Greek people, the country’s commitment to reform, and the solidarity of its European partners.
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With the onset of the global financial crisis, the longstanding downward trend in tariffs and other barriers to trade has largely come to a halt. Recent political events – such as the Brexit vote in the United Kingdom, the shift in US trade policy and international responses to it – indicate a danger of rising protectionism and repatriation of production and consumption. In a highly interconnected world economy with global value chains (GVCs), the productivity of domestic industries depends on the availability of imported inputs. And because imported inputs complement the productivity of domestic labor, the fraction of workers who stand to lose from protectionism is large. To exemplify this, the Bank for International Settelements (BIS) study the effects of one hypothetical protectionist measure – the case of revoking NAFTA – in the global network of input-output trade.

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By Javier Hamann and Eija Holttinen
IMF Monetary and Capital Markets Department
Belgium accounts for less than 3 percent of the European Union’s $17 trillion economy, but it has outsize importance to the financial system. The reason is that Belgium hosts several institutions that provide global services for the settlement of transactions, custody, and payments. Belgium is also home to SWIFT, a critical node of the global payments network.
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