Basel Endgame is being watered down following intense bank lobbying against capital hikes; David Kelly writes on why London is the control capital of the world; and Ellesheva Kissin brings you an exclusive on how fintechs are funding the UK's open banking project. #Basel #openbanking #banking
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A service from FT Specialist, Banking Risk and Regulation helps you navigate regulatory developments in the banking sector through thorough trend analysis, data journalism and informed comment from Financial Times Group journalists. As the authoritative source of information concerning financial stability, risk management and prudential requirements, we provide risk and compliance professionals the insights they need to stay ahead of peers and build resilience in banking. To contact us, email enquiries.brr@ft.com. To start your 3 week free trial, click here: https://www.bankingriskandregulation.com/request-free-trial
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Banking Risk and Regulation reposted this
Scoop: 20 fintechs and banks have finally paid up £2mn after the FCA summoned them to ask for a cash injection to keep open banking going. The FCA will return in November for more funding, but people I spoke to said they may not hand out more cash if the first round isn't handled well. Read below! (Posting two days after pubbing, but better late than never)
Exclusive: Twenty fintechs and banks including Revolut, Monzo and Wise have collectively agreed to pay £2mn to fund the next phase of open banking, amid uncertainty over its future after a crucial bill was suspended, reports Ellesheva Kissin. The Financial Conduct Authority had asked 40 firms in March to stump up ad-hoc funding for the organisation directing the UK open banking industry. The watchdog said it needed a £2.75mn cash injection, provoking incredulity with an initial two-week deadline. Half the firms have now agreed. They have promised £100,000 each, according to five people familiar with the detail of the discussions, but the agreement has left a shortfall of £750,000 against the initial figure, which was later revised to £2.185mn. The FCA said it would return for more funding every six months to reach a funding target of £10mn. Firms have not committed to renew their donations. One funder calls the agreement “positive”, saying: “We’ll make progress now that some of the inertia is gone.” But a policy insider involved says: “They’re only getting 50 per cent of the [original] funding they asked for, so unless they’d really padded their [original] estimate, what on earth are they doing?” Find out which firms are among the 20 to sign up. You can also sign-up for a three-week trial by going to the story link below👇 https://lnkd.in/ec7xJGmG #openbanking #openfinance #banking cc Revolut Monzo Bank HSBC Santander Nationwide Building Society NatWest Lloyds Bank Barclays Open Banking Yapily TrueLayer UK Finance b.yond digital
Monzo and Revolut join 20 firms to prop up FCA’s £2mn open banking plea - Banking Risk and Regulation
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📢 The Hong Kong Monetary Authority (HKMA) Authority has levied a $1 million-plus fine on DBS Bank for money-laundering control failures. The HKMA imposed the HK$10 million (US$1.2 million) fine after finding that the Singaporean bank failed to "continuously monitor business relationships and conduct enhanced due diligence in high-risk situations." This move is intended as a “clear deterrent” to the industry, say experts, amid criticism over the flow of dirty money. What steps can banks take to bolster their AML frameworks? Insights from Tracy Moore at Fenergo, Chengyi Ong at Chainalysis & Choon Hong Chua, CAMS at Moody's Corporation Read more 👉 https://lnkd.in/eyD5tFsZ #FinancialCrime #AML #Compliance
HKMA vows AML crackdown after latest $1m-plus bank fine - Banking Risk and Regulation
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Banking Risk and Regulation reposted this
Thank you to Banking Risk and Regulation, a Financial Times publication, for providing the platform for this op-ed by the Chamber, and to members HSBC and Standard Chartered for their expertise alongside our colleagues at the City of London Corporation. Read it here and get your free trial of BRR: https://lnkd.in/gU7B8e5V
🏙️ London has solidified its reputation as the control capital of the world, leading the way in financial oversight and risk management, writes David Kelly of the British Chamber of Commerce Singapore (BritCham). 📊 The evolution of the control function in London can be traced back to the rate-rigging scandals of the previous decade, when the need for greater oversight and accountability became apparent. 🏦 Banks were forced to invest in systems and processes that would allow them to monitor traders’ activities more closely and in real-time. 👩💻 Over the past decade, the control function has grown in sophistication, leveraging advancements in technology and data analytics to enhance its effectiveness. 🇬🇧 The UK finance sector is pioneering new artificial intelligence solutions to tackle emerging risks such as cyber attacks, and minimise costly errors. 💡 How do you see London's role in global financial regulation evolving? Will other cities catch up, or will London maintain its lead? Read more below👇 https://lnkd.in/eXdCcyn2 #FinancialRegulation #RiskManagement #LondonFinance
How London became the control capital of the world - Banking Risk and Regulation
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🏙️ London has solidified its reputation as the control capital of the world, leading the way in financial oversight and risk management, writes David Kelly of the British Chamber of Commerce Singapore (BritCham). 📊 The evolution of the control function in London can be traced back to the rate-rigging scandals of the previous decade, when the need for greater oversight and accountability became apparent. 🏦 Banks were forced to invest in systems and processes that would allow them to monitor traders’ activities more closely and in real-time. 👩💻 Over the past decade, the control function has grown in sophistication, leveraging advancements in technology and data analytics to enhance its effectiveness. 🇬🇧 The UK finance sector is pioneering new artificial intelligence solutions to tackle emerging risks such as cyber attacks, and minimise costly errors. 💡 How do you see London's role in global financial regulation evolving? Will other cities catch up, or will London maintain its lead? Read more below👇 https://lnkd.in/eXdCcyn2 #FinancialRegulation #RiskManagement #LondonFinance
How London became the control capital of the world - Banking Risk and Regulation
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🤖 The EU wants to take the chaos out of crypto with a new 'travel rule' aimed at increasing transparency and security of transactions. 📅 From December 30, all crypto transactions will need detailed information about the sender and receiver, much like traditional banking transfers. 👮♀ This move is expected to bring much-needed clarity and help combat money laundering and terrorist financing in the crypto space. - The travel rule aligns crypto regulations with existing financial industry standards. - It addresses the "wild west" nature of crypto, aiming to stabilize the market. - The rule enhances security by requiring detailed transaction information. 💡 What impact do you think this will have on the crypto market? Will it encourage institutional investors or push more activity underground? Read more below👇 https://lnkd.in/dbsgMgQG Insights from Cail Wyn Evans from Mayer Brown, Daniel Klingenbrunn at Freshfields Bruckhaus Deringer, Marco Carlizzi of RSM, Nataliia Holovko of Parva Consulting and Haydn Jones of Kroll. #CryptoRegulation #FinancialTransparency #EUCompliance
EU travel rule to bring clarity to crypto transfers - Banking Risk and Regulation
bankingriskandregulation.com
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Exclusive: Twenty fintechs and banks including Revolut, Monzo and Wise have collectively agreed to pay £2mn to fund the next phase of open banking, amid uncertainty over its future after a crucial bill was suspended, reports Ellesheva Kissin. The Financial Conduct Authority had asked 40 firms in March to stump up ad-hoc funding for the organisation directing the UK open banking industry. The watchdog said it needed a £2.75mn cash injection, provoking incredulity with an initial two-week deadline. Half the firms have now agreed. They have promised £100,000 each, according to five people familiar with the detail of the discussions, but the agreement has left a shortfall of £750,000 against the initial figure, which was later revised to £2.185mn. The FCA said it would return for more funding every six months to reach a funding target of £10mn. Firms have not committed to renew their donations. One funder calls the agreement “positive”, saying: “We’ll make progress now that some of the inertia is gone.” But a policy insider involved says: “They’re only getting 50 per cent of the [original] funding they asked for, so unless they’d really padded their [original] estimate, what on earth are they doing?” Find out which firms are among the 20 to sign up. You can also sign-up for a three-week trial by going to the story link below👇 https://lnkd.in/ec7xJGmG #openbanking #openfinance #banking cc Revolut Monzo Bank HSBC Santander Nationwide Building Society NatWest Lloyds Bank Barclays Open Banking Yapily TrueLayer UK Finance b.yond digital
Monzo and Revolut join 20 firms to prop up FCA’s £2mn open banking plea - Banking Risk and Regulation
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Banks face a “complete shift” in their compliance approach as scrutiny of non-financial misconduct and employees’ personal lives grows, driven by supervisors’ efforts to promote “healthy” workplace cultures. It comes as financial regulators explicitly frame NFM as a risk to firm culture and highlight the potentially negative implications for individual organisations and markets if it is left unchecked. Experts argue that deeper co-operation between human resource departments and compliance teams will be required as the lines between professional and personal conduct become increasingly blurred. Natalie McManus-Barnett, FCCA, founding director of Innovate Compliance, says: “There is already greater interconnectedness between compliance and HR departments and a blending of misconduct and conduct risk frameworks,” as non-financial misconduct has climbed the regulatory agenda. “Increasingly, HR departments need to be advised by regulatory experts and employment lawyers,” she says. “This has the potential to completely shift the compliance paradigm at a bank into an integrated model rather than an independent silo.” Stephen J. Scott, founder and chief executive of US-based Starling, says better data use across the industry would help banks and regulators alike gauge and report on culture and conduct. “The problem here is that the industry operates without an established set of data-driven, quantitative metrics by which to gauge qualitative issues of culture and conduct, reliably, transparently and consistently,” says Scott. “As such, we’re left reliant upon inscrutable ‘supervisory judgement’, which is as likely to be right as it is to be wrong. Firms and regulators should prioritise the development of credible, leading indicators of culture and conduct risk, to remove the current squishiness around these issues.” Read more here https://lnkd.in/evAVgddR Story by James King. Insights from Kristy Grant-Hart, CEO of Spark Compliance Consulting and Kishore Bhindi, of Linklaters in Hong Kong. #Compliance #banking #misconduct
Supervisors’ desire for “healthy” workplaces drives scrutiny of bankers’ private lives - Banking Risk and Regulation
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The Lietuvos bankas | Bank of Lithuania has admitted its supervisory regime for fintechs requires improvement but insists that it remains open to new licensees in the space, after its decision to revoke the licence of a payments firm was overturned by EU courts. Following a European Court of Justice decision, the Supreme Administrative Court of Lithuania ruled last month that the payment institution licence of ABC Projektai was wrongly revoked by the country’s central bank in 2020. The company’s licence was reinstated on July 1. Denas Gadeikis, the central bank’s head of payment and electronic money institutions supervision, told sister publication The Banker: “After licensing a lot of institutions, we see that we need to step up our supervisory measures.” Read more from Aliya Shibli below👇 https://lnkd.in/eVZkkqeJ #Lithuania #banking #fintech
Lithuanian supervisor admits it must ‘step up’ after EU fintech ruling - Banking Risk and Regulation
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Two European banks with major operations in Russia — facing mounting pressure to reduce their exposure — are adopting markedly different approaches to regulatory demands for action. Italy’s UniCredit and Austria’s Raiffeisen Bank International AG continue to operate profitable units in the country despite multiple public pledges since the invasion of Ukraine to wind them down. Find out what different tacks each bank has taken in Giada Zampano's article below ⬇ https://lnkd.in/e5TSMxf9 #Russia #AMLCFT #AML #Ukraine
UniCredit and Raiffeisen adopt different tacks to regulatory demands over Russian operations - Banking Risk and Regulation
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