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European Commission must uphold corporate transparency in the 6th Anti-Money Laundering Directive

24 May 2023
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Transparency International has sent an open letter to European Commissioner Mairead McGuinness calling for support for proposals from the European Parliament regarding transparency of ultimate beneficial owners (UBO) in the 6th Anti-Money Laundering Directive. McGuinness is European Commissioner for Financial Services, Financial Stability and the Capital Markets Union, and has done pioneering work in combating financial crime. The letter was signed by 200 representatives from academia, civil society and media organisations active in 67 countries. 

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Photo: Press point by Ursula VON DER LEYEN, President of the European Commission

EU President von der Leyen on policies towards China

20 May 2023
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EU President von der Leyen on EU policies towards China at Session III of the G7, Foreign and Security Policy: “Our policies towards China need to change because China has changed. China has moved from “reform and opening” to “security and control”. China has become more repressive at home and more assertive abroad, particularly in its neighbourhood. And China struck an “unlimited friendship” with Russia on the eve of the brutal invasion of Ukraine. At the same time decoupling from China is neither viable nor in our interest. Therefore we should keep open communication lines and working with China in areas like climate change, pandemic preparedness, financial stability or nuclear proliferation. At the same time we have to reduce our vulnerabilities in our economic relationship (economic de-risking).”
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Harmonised EU patent rules boost innovation, investment and competitiveness in the Single Market

17 May 2023
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The Commission has proposed new rules to help companies, especially small and medium-sized companies (SMEs), make the most of their inventions, leverage new technologies and contribute to the EU’s competitiveness and technological sovereignty. The proposed Regulations on standard essential patents, compulsory licensing of patents in crisis situations, and the revision of the legislation on supplementary protection certificates will create a more transparent, effective and futureproof intellectual property rights framework. Intangible assets like brands, designs, patents and data are increasingly important in today’s knowledge economy. Intellectual property (IP) is a key driver for economic growth as it helps companies gain value from their intangible assets. IP-intensive industries account for almost half of all GDP and over 90% of all EU exports. In the period 2017–2019, nearly 76% of intra-EU trade was generated by patent-intensive industries.
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The inside story behind the disciplinary reprimands to Ex-CEO Ralph Hamers (and van der Veer and Breukink) for the salary row at ING in 2018

16 May 2023
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by Simon Lelieveldt

So what’s the deal with the ING 2018 attempt to raise the salary of Hamers? How should non-Dutchies understand the recent reprimand of former CEO Ralph Hamers, former supervisory board chair Jeroen van der Veer and some guy Breukink (former supervisory board member acting as the head of remuneration committee)? Quite a number of people are asking me to provide my perspective, and while I’ve documented quite a lot on this topic in the Dutch media (notable a range of articles at Follow the Money and an open youtube public lecture), I didn’t do so in English. But now that the disciplinary action and reprimand is final, it seems a good moment to try and explain the Dutch peculiarities and board dynamics ING to a wider international audience. Continue reading…

FCA continues action against unregistered crypto ATMs across the UK

15 May 2023
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The Financial Conduct Authority (FCA) has used its powers to inspect sites in Exeter, Nottingham and Sheffield suspected of hosting illegally operated crypto ATMs, as part of a continued crackdown on this illicit sector. The inspections were part of a joint operation with the South West Regional Organised Crime Unit, Yorkshire and Humber Regional Organised Crime Unit and the Nottinghamshire Police force.   Continue reading…

Photo: Nils Aasheim / Norges Bank

The conduct of monetary policy

12 May 2023
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by Ida Wolden Bache

The Norwegian economy had recovered after the sharp downturn during the pandemic. High energy prices and a sharp rise in international goods prices had driven up consumer price inflation to a level markedly above the inflation target. Economic activity was strong, and job vacancies were high. Norges Bank expected rising wage growth and higher imported goods inflation to push up inflation through the year, and overall price inflation was projected to be 3.4 percent in 2022. The policy rate was projected to rise towards 2 percent over spring 2023. These forecasts were less than accurate. The policy rate has been raised faster and more than projected in March 2022. The policy rate was raised in response to a considerably faster rise in inflation than projected. Norges Bank’s task is to keep inflation low and stable. The operational target is inflation of close to 2 percent over time. Inflation targeting shall be forward-looking and flexible so that monetary policy can also contribute to high and stable output and employment and to countering the build-up of financial imbalances. High inflation is costly for society. It increases uncertainty about future inflation and makes economic planning difficult. Uncertainty can also lead to a situation where investment projects with longer horizons must give way to investment projects with shorter horizons. Rapid and unexpected price increases hit low-income households with the smallest margins hardest.
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FSB statement to encourage final preparations for the USD LIBOR transition

11 May 2023
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The finish line for US dollar (USD) LIBOR transition at end-June 2023 is now less than three months away. There has been significant progress made to date, and market participants must continue to act in order to ensure an orderly transition and to support the foundations necessary for a sustainable and stable financial system going forward. Given the limited time ahead, the FSB stresses that it is critical that market participants act expeditiously to ensure that their legacy contracts are prepared to transition by end-June 2023. Continue reading…

Photo: Texture of sand with lines. Zen concept

Risk Perception, Awareness and Risk & Control Governance: How to improve the dialogue between the actors of control and compliance systems with internal and external stakeholders

09 May 2023
Knowledge Base

by Fabio Accardi

In the first part of the book “Risk and Control Governance” [*1] I have highlighted, also with simple examples, how the theme of risk management pertains, in the first place, to our personal dimension. Indeed, in daily choices, if we want to face a decision that concerns us, we always need to make assessments that relate to the probability of running into some events or not. Of course, this relates to decisions that have an impact on the environment and the social context in which we live. The principles and values that guide our conduct constitute the foundations of our “culture of risk”. This can eventually condition the creation of value for the areas that interest us most directly. In terms of environment, the terms “nimby” (not in my backyard) and “pimby” (please in my backyard) are now widely applied. We cannot assess in advance whether a certain type of behavior attributable to these two patterns leads or not to value creation for us and for others. In any case, our choices are not always guided (only) by rationality and compensated by adequate returns or personal advantages. It is known, for example, that the phenomenon of illegal landfills of materials harmful to health, as well as a serious violation of the rules with the subsequent risks of sanctions also constitutes a serious damage to people and the environment. Yet, willing people have allowed them to be built not far from their homes, demonstrating a poor perception of the risks to which they are exposed. In order to obtain easy immediate profits, in fact, the consequences that these landfills have on them and their families are not evaluated. Similarly, if we have a large garden, we can agree on the benefits that can derive to us and our neighbors from the installation of solar panels, but we oppose because we do not renounce to sacrifice a portion of space to devote to these installations.
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Reserve Bank of India and Bank for International Settlements invite cross-border payments solutions for G20 Techsprint

08 May 2023
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The RBI and the BIS have on 4 May jointly launched the fourth edition of the G20 TechSprint Initiative, a global technology competition to promote innovative solutions aimed at improving cross-border payments, under India’s G20 presidency. Following the success of the three previous competitions in the areas of regulatory compliance (regtech) and supervision (suptech), green and sustainable finance, and central bank digital currencies (CBDCs), the 2023 TechSprint will focus on three problem statements on cross-border payments, as formulated by the RBI and the BIS Innovation Hub. Continue reading…

Central Banks: Observers or Leaders of Change?

05 May 2023
Knowledge Base

by Sandra Švaljek

In recent years, we have seen many negative global developments, such as lockdowns, restrictions, supply chain bottlenecks, aggression in Ukraine, oil price shock and sanctions. On the positive side, technology is constantly changing and evolving, revolutionising how we live and work owing to pronounced advancements in computing power, AI and machine learning, 5G technology and cloud computing. It all profoundly affects how we perceive money. So, the name of this conference  precisely depicts the evolving and shape-shifting nature of money due to these developments. While the diffusion of technologies is accelerating as well, it is precisely in the area of payments where it is the most rapid. We are still determining what this will bring and which form the money will eventually take. Are we going to see the decline in the dominance of one global currency and its replacement by a new one or the formation of an alliance between currencies? Will it be the dominance of technology companies in providing payment services to the general public?
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