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
Knowledge Base

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
Knowledge Base

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
Knowledge Base

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
Knowledge Base

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…

Risk & Compliance Summer School 2023

10 May 2023

Our brand new and upcoming Summer School in Amsterdam is a unique training organised by Risk & Compliance Platform Europe on Compliance Management and Regaining Trust. You will meet international professionals coming from the countries that are covered by Risk & Compliance Platform Europe (mainly Europe), and have the opportunity to share best practices, brainstorm ideas, learn new methodologies, and directly apply new tools to practical exercises. This two-day summer course will take place in the city of Amsterdam and is open to anyone who has the right education and experience, mainly Directors, Compliance Officers / Managers, Senior Risk & Compliance Professionals and Lawyers. The lecturers have a wide array of professional experience in their dedicated field, with courses including practical workshops and theory. 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
Knowledge Base

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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Stronger rules to fight corruption in the EU and worldwide

04 May 2023
Knowledge Base

Yesterday, the Commission has taken decisive action to fight corruption in the EU and worldwide, delivering on the commitment made by President von der Leyen in her 2022 State of the Union address. The anti-corruption proposals presented yesterday represent a milestone in the fight against corruption at national and EU level. The Commission will step up its action: building on measures in place, strengthening efforts to integrate the prevention of corruption into the design of EU policies and programmes, and actively supporting Member States’ work to put in place strong anti-corruption policies and legislation. Through its annual Rule of Law Report cycle, the Commission also monitors anti-corruption developments at national level, identifies challenges and issues of recommendations to Member states.
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Strike against organised crime group that defrauded thousands of companies

03 May 2023
Knowledge Base

Judicial and law enforcement authorities in Germany, Estonia and Latvia have carried out a coordinated action against an organised crime group suspected of defrauding thousands of German companies. During a joint action day in all three countries, three suspects were arrested and 17 places searched. Investigators seized cash, illegal drugs and additional pieces of evidence. Moreover, over 300 bank accounts were frozen.

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