The Commission welcomes the political agreement reached between the European Parliament and the Council on the Artificial Intelligence Act (AI Act), proposed by the Commission in April 2021. Ursula von der Leyen, President of the European Commission, said: “Artificial intelligence is already changing our everyday lives. And this is just the beginning. Used wisely and widely, AI promises huge benefits to our economy and society. Therefore, I very much welcome today’s political agreement by the European Parliament and the Council on the Artificial Intelligence Act. The EU’s AI Act is the first-ever comprehensive legal framework on Artificial Intelligence worldwide. So, this is a historic moment. The AI Act transposes European values to a new era. By focusing regulation on identifiable risks, today’s agreement will foster responsible innovation in Europe. By guaranteeing the safety and fundamental rights of people and businesses, it will support the development, deployment and take-up of trustworthy AI in the EU. Our AI Act will make a substantial contribution to the development of global rules and principles for human-centric AI.” Continue reading…

by Robert Houghton

As financial institutions gear up for the next 12 months, it’s time to reflect on the key trends and developments, considering how they’ll shape the year ahead. While the financial landscape is constantly evolving, we believe there are four important issues that will shape 2024: Continue reading…

by Ajay Katara

Basel III end game is the latest update to the US Capital requirements which will bring about sweeping changes to the existing capital requirements in place for the US banks. Under the existing provisions there are two approaches which apply to US banks. The standardised approach applies to all banking organisations (other than community banks) and advanced approaches apply to category 1 and category 2 US banks, and they must also compute Risk Weighted Assets (RWA) under the standardised too. The US regulators have proposed July 2025 for compliance with new requirements with a three-year transition period ending in Jun 2028. The new regulation will bring about a lot of changes and will fundamentally apply to banks with asset sizes greater than USD 100 Mn with specific changes applying to banks designated between category 1 to category IV. Continue reading…

As financial firms maneuver the continued fallout of recent bank failures, analytics and AI leader SAS is expanding its partnership with Microsoft to help banks better manage looming liquidity and interest rate risks. SAS® Asset and Liability Management (ALM), powered by Kamakura Risk Manager on Microsoft Azure, supports multi-period, scenario-based, integrated simulation and valuation for risk management, capital allocation and balance sheet optimization. Continue reading…

by Sandro Severoni

In his novelette “The Bicentennial man” published in 1976, sixteen years later used as reference for the book “The Positronic Man” from him and Robert Silverberg, and in 1999 for the movie from Chris Columbus, Isaac Asimov depicted the character of a robot who evolves during two centuries from being a robot, created to serve as butler to a family that had early on discovered that it had some abilities to carve objects from wood, to a conscious being wanting to consider itself a man. As Thomas Metzinger mentioned in 2009 in his “The science of mind and the myth of the self”: “it is conceivable that someday we will be able to construct artificial agents (…) self-sustaining systems”, this may bring to consider that, if we were able to create such agents in self-sustaining machines possessing some kind of consciousness qualities, it will raise concerns about their moral status and how they are treated, included into a society, receive rights and legal protection. Continue reading…

by Nigel Cannings

The number of fines issued by the Financial Conduct Authority (FCA) more than doubled in 2022. From the breach of Anti-Money Laundering (AML) rules, and Know Your Customer (KYC) checks, to problems with operating guidelines, individuals and businesses within the UK paid out more than £215 million in fines last year. Regulations have become more stringent. Compliance is much more closely monitored, leaving businesses struggling not only to adhere to the regulations but to demonstrate that they have done so and one of the most effective solutions has taken the form of voice tech.  Continue reading…

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?
Continue reading…

On September 28, the Commission adopted two proposals to adapt liability rules to the digital age, circular economy and the impact of global value chains. Firstly, it proposes to modernise the existing rules on the strict liability of manufacturers for defective products (from smart technology to pharmaceuticals). The revised rules will give businesses legal certainty so they can invest in new and innovative products and will ensure that victims can get fair compensation when defective products, including digital and refurbished products, cause harm. Secondly, the Commission proposes for the first time a targeted harmonisation of national liability rules for AI, making it easier for victims of AI-related damage to get compensation. Continue reading…

by Nigel Cannings

Financial Institutions that fall foul of compliance regulations were fined $2.7 billion in 2021 globally, according to Forbes. This included violations of Anti-Money Laundering (AML) rules, Know Your Customer (KYC) checks and operating guidelines. As financial regulation increases to ensure the safety and security of the financial system and to protect consumers, financial institutions must consider how they can best protect themselves from compliance-related fines. Continue reading…