A broad common approach, involving administrations such as civil registries and consulates, is instrumental to tackling the fraud and abuse perpetrated by Organised Criminal Groups (OCGs) via sham marriages. In addition, further enhancement of judicial cooperation and the coordination of investigations at EU level will give extra impetus to the fight to thwart those arranging marriages of this kind. These are the main recommendations made by Eurojust, the European Agency for Criminal Justice Cooperation, in a report which was adopted recently.  Continue reading…

by Alex Movchan

We recently conducted an interview together with Magali Logossou who is a Global Audit Manager Forensics by the Heineken company. We focused on the topic of conducting fraud investigations within organisations during the Covid-19 pandemic, which Magali Logossou gave her insights on given her expert opinion in the fields of internal auditing and forensic practices. Hello Magali, you have an impressive international career in France, UK, Switzerland and the Netherlands with in depth knowledge of internal audit and forensic practices. Based on your experience, on which 2-3 main points would you advise organisations to focus on to prevent or significantly minimise the probability of fraud occurring within an organisation? Continue reading…

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published the results of its Fast Track Peer Review (Peer Review) which assessed the events leading to the collapse of Wirecard AG and the supervisory response by BaFin (Bundesanstalt für Finanzdienstleistungaufsicht) and the Financial Reporting Enforcement Panel (FREP). The Peer Review focuses on the application by BaFin and FREP of the Guidelines on Enforcement of Financial Information (GLEFI) and on impediments to the effectiveness of the German two-tier supervisory system for financial reporting in the specific context of the Wirecard case. The Peer Review, based on the assessment, identifies a number of deficiencies, inefficiencies and legal and procedural impediments. These relate to the following areas: the independence of BaFin from issuers and government; market monitoring by both BaFin and FREP; examination procedures of FREP; and the effectiveness of the supervisory system in the area of financial reporting. The Peer Review provides recommendations to address these shortcomings.  Continue reading…

The Financial Stability Board (FSB) recently published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors ahead of their virtual meeting. The letter notes the extraordinary challenges for the global financial system this year. The FSB will provide a comprehensive report on the financial stability implications of, and policy responses to, the COVID Event to the November G20 Summit, including a holistic review of the market turmoil in March. The holistic review will inform future steps of the FSB in 2021 under the Italian G20 Presidency to improve the resiliency of the NBFI sector while preserving its benefits. Continue reading…

Recently, the Commission takes further steps in the Digital Decade agenda to strengthen Europe’s digital sovereignty, as announced by President Ursula von der Leyen in her State of the Union Address on Wednesday. The Commission has proposed a new Regulation for the European High Performance Computing Joint Undertaking to maintain and advance Europe’s leading role in supercomputing and quantum computing. It will support research and innovation activities for new supercomputing technologies, systems and products, as well as foster the necessary skills to use the infrastructure and form the basis for a world-class ecosystem in Europe. The proposal would enable an investment of €8 billion in the next generation of supercomputers – a substantially larger budget compared to the current one. Continue reading…

by Geert Vermeulen

The FinCEN files have caused quite some commotion recently. A large amount of secret information about suspicious transactions has been revealed and we are still working our way through the information. Most of the newspaper articles commenting on the FinCEN files focus on what went wrong at the banks. And as with many of these X-leaks, Y-papers and Z-files, the revelations will likely lead to a number of prosecutions, more legislation and stricter supervision. But what do we see when we take a step back and look at it from a distance? Above all, we see a lot of suspicious transactions. That was to be expected, of course, because that was the reason why these transactions were reported to FinCEN in the first place. You could also say that the system is working! And perhaps the banks on the other side of the transaction reported them as well? We don’t know. Continue reading…

The European Commission recently launched a new Customs Union Action Plan setting out a series of measures to make EU customs smarter, more innovative and more efficient over the next four years. The announced measures will strengthen the Customs Union as a cornerstone of the Single Market. They also confirm its major role in protecting EU revenues and the security, health and prosperity of EU citizens and businesses. In her political guidelines, President von der Leyen announced that the Customs Union needed to be taken to the next level, in particular, by ensuring an integrated European approach to customs risk management, which supports effective controls by EU Member States. The Action Plan does just that. Continue reading…

Mr. Ladislav Hamran has been re-elected as President of Eurojust, the European Agency for Criminal Justice Cooperation. National Member for the Slovak Republic at Eurojust, Mr Hamran (47) was elected during a recent virtual meeting of Eurojust’s College for a new term of four years. Continue reading…

The Financial Stability Board (FSB) recently published a report on the use of supervisory (SupTech) and regulatory (RegTech) technology by FSB members and regulated institutions. The report finds that technology and innovation are transforming the global financial landscape, presenting opportunities, risks and challenges for regulated institutions and authorities alike. The opportunities offered by SupTech and RegTech have been created by the substantial increase in availability and granularity of data, and new infrastructure such as cloud computing and application programming interfaces. These allow large data sets to be collected, stored and analysed more efficiently. Authorities and regulated institutions have both turned to these technologies to help them manage the increased regulatory requirements that were put in place after the 2008 financial crisis. Continue reading…