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 Financial Stability Board (FSB) recently published a discussion paper for public consultation, on Regulatory and Supervisory Issues Relating to Outsourcing and Third-Party Relationships. The discussion paper draws on findings from a survey conducted among the FSB members. Financial institutions have relied on outsourcing and other third-party relationships for decades. However, in recent years, the extent and nature of interactions with a broad and diverse ecosystem of third parties has evolved, particularly in the area of technology. The financial sector’s recent response to COVID-19 highlights the benefits as well as the challenges of managing the risks of financial institutions’ interactions with third parties. The pandemic may have also accelerated the trend towards greater reliance on certain third-party technologies. Continue reading…

The European Central Bank (ECB) recently published the European System of Central Banks’ (ESCB) input into a European Banking Authority (EBA) feasibility report on reducing the reporting burden for the European banking industry. Under Article 430c of the Capital Requirements Regulation (CRR), the European Parliament and the Council of the European Union mandated the EBA to carry out a feasibility study and requested that input from the ESCB be taken into account. Continue reading…

ING announced today that Ljiljana Čortan will be appointed Chief Risk Officer of ING. Ljiljana Čortan until recently served as chief risk officer of HypoVereinsbank – UniCredit Bank (HVB) in Germany. She will succeed Steven van Rijswijk, who was appointed CEO of ING effective 1 July 2020. Ljiljana Čortan will be appointed as Chief Risk Officer and member of the Management Board Banking effective 1 January 2021. The Supervisory Board will propose to shareholders to appoint her as member of the Executive Board and Chief Risk Officer of ING Group at the Annual General Meeting in April 2021. 
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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 report about market developments and financial stability implications from the provision of financial services by BigTech firms in emerging market and developing economies (EMDEs). The report is being delivered to G20 Finance Ministers and Central Bank Governors for their virtual meeting on 14 October. The report finds that the expansion of BigTech firms in financial services in EMDEs has generally been more rapid and broad-based than that in advanced economies. Lower levels of financial inclusion in EMDEs create a source of demand for BigTech firms’ services, particularly amongst low-income populations and in rural areas where populations are under-served by traditional financial institutions. Continue reading…

The 21st International Conference of Banking Supervisors (ICBS), hosted virtually by the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada, was held on 19-22 October 2020. Approximately 450 senior banking supervisors and central bankers representing close to 100 countries took part. Delegates discussed a wide range of issues related to the future of banking supervision in a changing world. The discussions covered the digitalisation of finance and the evolution of banking models, operational resilience, climate-related financial risks and remote working arrangements. Participants also exchanged views on the challenges for central banks and bank supervisors in advanced and emerging market economies during the Covid-19 pandemic, as well as adapting to the changing operating environment for central banks and supervisors. Continue reading…

The Financial Conduct Authority (FCA) has been recently urging consumers struggling to make repayments due to the impact of coronavirus (Covid-19), to speak to their lenders about options available to them. The FCA has put in place a package of support for people in difficulty to ensure help is available after 31 October. A survey of more than 7,000 people, conducted by the FCA during the coronavirus pandemic, found 12 million people in the UK had low financial resilience, meaning they may struggle with bills or loan repayments. The data shows 2 million of those who are not financially resilient have become so since February. Continue reading…

A phenomenal degree of capital markets funding upheld businesses in the first semester of 2020. As such, bond issuance has risen, with growth of social bonds solidifying Europe’s ESG administration. However, an undeveloped equities market implies SMEs keep on depending on loans from banks, limiting their chances to develop. Securitisation volumes kept on falling, impeding the banks’ ability to extend their loaning. Capital market unions required like never before to help long haul recuperation. European capital business markets provided gave record funding amounts to help businesses and economies this year. However, the absence of progress on the Capital Markets Union could stifle Europe’s economic recovery, as per a report published on October 28th by the Association of Financial Markets in Europe in a joint effort with 10 other international and European organisations. Continue reading…