For the vast majority of organisations, both corporate and government agencies, compliance requirements are a painfully complex and expensive area to manage. And the challenge is only getting greater. Virtually every sector faces an ever-growing and ever-changing number of regulations with which they need to comply. Every organisation also faces the risks of failing to comply with its own internal corporate policies and controls, spanning multiple financial and operational systems. We know that businesses and government entities alike struggle to manage compliance requirements. Many have put up with challenges for so long—often with limited resources—that they no longer see how problematic the situation has become. The good news is that there is a solution to a big part of the problem. There are practical things that you can do to transform your compliance processes, so they become far more efficient, and far less expensive and cumbersome to maintain. It’s all about optimising the interactions of people, processes, and technology around regulatory compliance requirements across the organisation.

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At the request of the German authorities, Eurojust and Europol have assisted in bringing four different online investment scams to a halt, which defrauded thousands of victims for an estimated amount of approximately EUR 30 million. During a joint action day, six suspects have been arrested for organising a fake trading scheme in high-risk options and cryptocurrencies, using manipulated software to project victims’ alleged capital gains. The operation was rolled out on the ground in Bulgaria, Poland, Sweden, Latvia, Spain, North Macedonia and Israel. Continue reading…

The private sector working group on euro risk-free rates has recently published its recommendations addressing events that would trigger fallbacks in EURIBOR-related contracts, as well as €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered). While there is currently no plan to discontinue EURIBOR, the development of more robust fallback language addresses the risk of a potential permanent discontinuation and is in line with the EU Benchmarks Regulation (BMR). The valuable feedback from the two market-wide consultations on the draft recommendations has been taken into account in the final recommendations. Continue reading…

In a new major operation against international drug trafficking and money laundering, Eurojust and Europol have supported the competent Italian and German authorities with the arrest of 31 suspects in both countries, alleged to be part of the ‘Ndrangheta mafia’, operating in different regions of Italy and abroad. Further to this, in the context of a joint investigation team (JIT) between Italy and Germany, 65 other suspects have been identified and their places were searched during a large-scale action, for which around 800 police officers and tax officials were deployed in both countries. Continue reading…

The European Banking Authority (EBA) recently published three regulatory instruments to address de-risking practices based on evidence gathered in its call for input. The instruments clarify that compliance with anti-money and countering terrorist financing (AML/CTF) obligations in EU law does not require financial institutions to refuse, or terminate, business relationships with entire categories of customers that they consider to present a higher ML/TF risk. In these documents the EBA also set out steps that financial institutions and competent authorities should take to manage risks associated with individual business relationships in an effective manner. Continue reading…

by Alex Movchan

2020 was a year full of unexpected and unknown, when countries and businesses had to deal with new risks and adjust their business strategies and operations to be successful in the new environment. But while leaders around the world were trying to find ways to keep businesses profitable and prevent people from losing their jobs, corrupt government officials and fraudsters were actively exploring new vulnerabilities and using those for their personal, illegal gain. In these circumstances, the work of risk management and fraud prevention professionals to secure their organisations became even more important than ever before. Continue reading…

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, recently published the results of the 2020 Common Supervisory Action (CSA) on UCITS liquidity risk management (LRM). The CSA showed that the overall level of compliance with the applicable rules is satisfactory in most cases, but there is scope for improvement in liquidity management for some UCITS analysed. The exercise also highlighted areas where ESMA will work to further promote convergence across National Competent Authorities (NCAs). This exercise was launched on 30 January 2020. Its purpose was for all NCAs to conduct coordinated supervisory activities to assess whether UCITS managers comply with their LRM obligations. The CSA was also an opportunity to strengthen the ongoing exchange of supervisory knowledge and experience among NCAs. Continue reading…

Mr. Gent Sejko, Governor of the Bank of Albania, recently gave a keynote speech at the Conference on “New normal: Challenges & Opportunities” at the European University of Tirana, Tirana on 30 April 2021. It is a great pleasure for me to greet the proceedings of this Conference on the “New normal”. This topic is both an emergent and unresolved issue of the current economic debate. We altogether: policy makers; academics; and operators in the private sector, are aware that a new reality lies ahead in the post-pandemic world. “What would be the contours of this new reality?”; “What challenges and opportunities lie ahead of the private sector?” and “Which will be the objectives and instruments of the monetary policy”. These questions still lack a thorough answer. Continue reading…

The European Commission has recently welcomed the entry into force of the EU4Health programme on 26 March. This follows the Council adoption on 17 March and the vote on the programme by the European Parliament on 9 March. It marks the final step towards making €5.1 billion available to strengthen the resilience of health systems and promote innovation in the health sector. EU4Health will make a significant contribution to the post-COVID-19 recovery by making the EU population healthier, supporting the fight against cross-border health threats and boosting the EU’s preparedness and capability to respond effectively to future health crisis, as part of a future strong European Health Union. Continue reading…

Following feedback to its Call for Input (CFI) on Consumer Investments, the Financial Conduct Authority (FCA) has recently published proposals to strengthen its financial promotion rules for high-risk investments to help retail investors make more effective decisions. The discussion paper (DP) seeks views on three areas where changes could be made to address harm to consumers from investing in inappropriate high-risk investments. The three areas of focus are the classification of high-risk investments, the segmentation of the high-risk investment market and the responsibilities of firms which approve financial promotions. The feedback to this DP will help shape the rules the FCA plans to consult on later in the year, ensure they are feasible for firms to implement and that they have the intended impact. Continue reading…