The SOMI Foundation has sued TikTok on June 2, 2021 for violating privacy laws through a mass claim on behalf of parents whose children have used TikTok. The claim amount can reach more than € 1.4 billion. According to the foundation, TikTok is negligent when it comes to ensuring the safety and privacy of children on the platform. Internationally, this has already led to multiple deaths among minors. According to the foundation, it is therefore necessary to “intervene as soon as possible”. Continue reading…

Whistleblowers are the primary source of information, leading to successful policing on economic crime. Detecting organisational misbehaviour is challenging, especially when those that witness wrongdoings do not have sufficient knowledge and incentives on how, and whether, to disclose. The webinar series “Whistleblowing Demystified,” which was held on Tuesday, May 25th 2021 was aimed at giving confidence and guidance to companies to treat those speaking out with respect and dignity, whilst at the same time protecting the organisation from malicious accusations. There are many pressing ethical and legal questions related to whistleblowing that might affect the effectiveness of disclosure. The webinar was moderated by Elina Karpacheva from the European Compliance Center, and featured Ian Ross as the guest speaker of the morning. This event was also jointly organised by the European Compliance Center and the Risk & Compliance Platform Europe and endorsed by VUZF University in Bulgaria. This is part two. Continue reading…

by Frank Staelens

The priority of European business owners today is fighting the effects of the pandemic, understandably, but as a result, a creeping danger remains hidden under the radar. We are in whistleblower alert phase one! The transposition of the new EU whistleblower rules by the EU Member States into national law is expected by December 17, 2021. Immediately thereafter, it is expected that these rules will apply to private and public organisations with more than 250 employees. Organisations with fewer than 250 employees will have two additional years of grace, but they will also be subject to the new regulations, with some exceptions for small businesses with fewer than 50 employees. Continue reading…

Whistleblowers are the primary source of information, leading to successful policing on economic crime. Detecting organisational misbehaviour is challenging, especially when those that witness wrongdoings do not have sufficient knowledge and incentives on how, and whether, to disclose. The webinar series “Whistleblowing Demystified,” which was held on Tuesday, May 25th 2021 was aimed at giving confidence and guidance to companies to treat those speaking out with respect and dignity, whilst at the same time protecting the organisation from malicious accusations. There are many pressing ethical and legal questions related to whistleblowing that might affect the effectiveness of disclosure. The webinar was moderated by Elina Karpacheva from the European Compliance Center, and featured Ian Ross as the guest speaker of the morning. This event was also jointly organised by the European Compliance Center and the Risk & Compliance Platform Europe and endorsed by VUZF University in Bulgaria. This is part one. Continue reading…

The Commission recently published its guidance on how the Code of Practice on Disinformation, the first of its kind worldwide, should be strengthened to become a more effective tool for countering disinformation. It sets out Commission expectations, calls for stronger commitments by the signatories and foresees a broader participation to the Code. Based on a robust monitoring framework and clear performance indicators, signatories should reduce financial incentives to disinformation, empower users to take an active role in preventing its spread, better cooperate with fact-checkers across EU Member States and languages, and provide a framework for access to data for researchers. Continue reading…

The stark rise in the production of synthetic drugs such as (meth-)amphetamines poses increasing challenges for prosecutors across Europe. By rapidly changing the composition of chemicals used for these drugs – as, for instance, red phosphorus, MAPA and APAA – or creating new substances, producers try to exploit legal gaps and avoid prosecution. Also, due to legal uncertainties, it is often difficult to prove suppliers are deliberately selling illegal drugs or substances. Furthermore, the sale of synthetic drugs via online marketplaces, particularly on the darknet, is an obstacle for prosecutions and seriously harms public health. These are some of the main conclusions of the new Eurojust Report on Drug Trafficking. Illicit drug trafficking across the EU is generally growing strongly, with an estimated value of at least EUR 30 billion. The report gives further recommendations to increase financial investigations, asset recovery and judicial cooperation, including with third countries. Continue reading…

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, recently published a call for evidence on digital finance. The call for evidence aims to gather relevant information on particular issues including value chains, platforms and groups’ provision of financial and non-financial services. The feedback will contribute to ESMA’s technical advice to the European Commission. Digital transformation and the application of innovative technologies in the EU financial sector bring a host of opportunities, including better financial services to a wider range of businesses and investors, possibly at a lower cost.
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by Frank Staelens

Although the global amount spent on combating financial crime went above $1,3 billion, 2020 saw a record number of enforcement actions in numerous global jurisdictions. Furthermore, estimates suggest between $800 billion and $2 trillion of criminal money flows went through the financial system in 2020, while an overwhelming majority of it remained undetected. In other words, the Financial Crime combat status at the average financial institution today is too high in spending, and too low on results. Although regulators around the world always allowed for financial institutions to design their own risk based approach, review procedures are often copied from one institution to another and/or are standardised by using fixed checklists and risk weights. For instance, the risk weight for involvement with real estate activities is usually the same for all clients, while the specifics around the nature of the real estate activities (professional/private person, renting/promotion/project development, number of transactions and amounts concerned, the regions of activity, risk mitigating factors …) are best taken into account to avoid either over- or under qualification of risks. 
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The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Europe held a virtual meeting recently to discuss global and regional macroeconomic and financial market developments, and their potential impact on European economies. The group exchanged views on financial stability issues during the recovery from the COVID-19 pandemic, including potential threats to regional financial stability arising from the pandemic. Members also discussed authorities’ considerations in exiting from temporary public support measures, when conditions allow. Continue reading…