The European Court of Auditors (ECA) and the European Central Bank (ECB) have agreed a Memorandum of Understanding (MoU) that establishes practical information-sharing arrangements between the two institutions. These arrangements will allow the ECA to seek and obtain all the documents and information that it needs to audit ECB Banking Supervision. Highly confidential documentation will be fully protected, and access to sensitive bank-specific information will be granted in a controlled environment on-site at the ECB.

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UK nationals living in the EU, who may struggle to complete the necessary residency applications, will be helped by measures. The Government is providing up to £3 million in grant funding for charities and other voluntary organisations who will inform UK nationals about the need to register or apply for residency and support them as they complete their applications.

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The Securities and Exchange Commission charged a Pennsylvania investment adviser with operating an investment advisory fraud involving over $100 million in investments. The SEC also obtained an emergency asset freeze. The SEC’s complaint alleges that Brenda Smith, and her fund Broad Reach Capital, LP, raised approximately $105 million from approximately 40 investors by representing that she would invest their money in publicly traded securities through various trading strategies that she championed as providing consistent high returns.

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The European Commissioner for Digital Economy Mariya Gabriel announces an ambitious target to increase EU competitiveness in AI and try to catch up with the China and US in terms of investment. She proposed an investment objective of € 20 billion annually for the period 2021-2027, using the new EU funding programmes Horizon Europe and Digital Europe.
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by Giacomo Luca Aleo

On June 18, 2019 Facebook announced the birth of its own cryptocurrency: Libra, whose name is inspired by Roman unit of measurement, deriving from balance Latin name; the debut is expected for the first half of 2020. The announcement caused, on one hand, a general uproar and, on the other, the value increase of the other cryptocurrencies. The “Libra Association” (no-profit organization) will manage Libra. It currently counts 28 heterogeneous founding partners (with the goal of reaching 100), representing business giants: from Mastercard and Visa to operators of payment system (PayPal, PayU, Stripe), from telecommunications operators (Vodafone and Iliad) to consumer companies (including Booking, eBay, Spotify, Uber), from venture capital such as Andreessen Horowitz to a global exchange Coinbase. Managing Libra actually means manage the Libra Blockchain: it is a permissioned ledgers model, i.e. the management and the validation of transactions is prerogative of a single node, which – in this case – is collective and represented by the Libra Association. The blockchain will record the entire history of the transactions by replicating them in the node; therefore, the transactions will be transparent to all participants of the Libra Association.
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The Securities and Exchange Commission announced fraud charges against a Brooklyn individual and two entities under his control who allegedly engaged in a fraudulent scheme to sell digital securities to investors and to manipulate the market for those securities.  The court entered an emergency freeze to preserve at least $8 million of the $14.8 million the defendants raised in 2017 and 2018 in an offering of digital securities.
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The Information Commissioner’s Office (ICO) is consulting on a new framework code of practice for the use of personal data in political campaigning. The framework code will serve both as helpful guidance in its own right as well as having the potential to become a statutory code of practice if the relevant legislation is introduced. The framework code does not introduce new requirements for campaigners but seeks to explain and clarify data protection and electronic marketing laws as they already stand. It also seeks to provide practical guidance and useful examples on ways campaigners could comply with their obligations whilst carrying out common political campaigning activities.

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by Elina Karpacheva

Innovation is surely a good thing. FinTech makes access to finance fast, easy and accessible which is of great benefit to individuals, households and businesses. However, the increased speed of initiating transactions, the borderless movement of money flows, and anonymity may be exploited for ill-gotten gains. FinTech might be used for terrorist financing, money laundering, fraud, tax evasion, market abuse, and overall undermine the stability of financial system. From this angle, FinTech companies have enormous responsibility towards the society to prevent fraudulent behaviour. Governments around the world have started recognising risks associated with technologically enabled financial innovation. In effect, we see the increased level of regulation with enforcement against the FinTech being one of the priorities. The need of FinTech companies to establish compliance expertise to prevent, detect, and response to financial crime has become apparent. 
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The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) are joining forces again this summer to warn the public about fraudsters targeting people’s retirement savings. This warning comes as new research suggests that 42% of pension savers, which would equate over 5 million people across the UK, could be at risk of falling for at least one of six common tactics used by pension scammers.
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The Office of the Comptroller of the Currency (OCC) inform national banks, federal savings associations, and federal branches and agencies (collectively, banks) of sound fraud risk management principles. Fraud risk management principles can be implemented in a variety of ways and may not always be structured within a formal fraud risk management program. Regardless of the structure, fraud risk management should be commensurate with the bank’s risk profile. Banks with significant and far-reaching retail-oriented business activities should have well-documented fraud risk management programs with appropriate monitoring, measurements and reporting, and mitigation.

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