Japan’s central bank and its financial regulator are teaming up to test major banks’ resilience to mounting risks. The joint stress tests by the Bank of Japan (BoJ) and the Financial Services Agency (FSA) will require five banks to measure their ability to withstand shocks such as a sharp economic slowdown, falling stock prices, and changes in interest rates. (Bloomberg Law) 3 mins
The Hong Kong Monetary Authority (HKMA) has issued a new supervisory policy manual on risk management of e-banking, following consultation with two industry associations. The supervisory policy manual seeks to strengthen risk management controls in electronic banking channels by providing more principle-based guidance. (Regulation Asia) 3 mins
Ravi Menon, managing director of the Monetary Authority of Singapore (MAS) has said that central banks need to respond to the challenge posed by Facebook’s attempt to create a faster and more affordable payments network via Libra. According to Menon, Libra shows that banks can do more. (Bloomberg Law) 2 mins
Compliance
An understanding of behavioural ethics can help strengthen a firm’s compliance programme, says compliance specialist Jeffrey Kaplan. Behavioural ethics is a field of social science that shows how, due to various cognitive biases, we are not as ethical as we believe we are. (FCPA) 3 mins
RegTech
ClauseMatch is collaborating with Aberdeen Standard Investments (ASI) in Singapore for the Investment Management Association of Singapore’s (IMAS) Digital Acceleration Program (DAP) to pilot a solution for the industry. The collaboration has allowed ClauseMatch to deepen its understanding of the challenges faced by the asset management industry. (Finextra) 2 mins
Last week saw the launch of ‘The REGTECH Book’ at Level 39 in Canary Wharf. The first of its kind, the book provides a comprehensive and invaluable source of information for corporates, regulators, compliance professionals, start-ups and policy makers. (Eventbrite) 1 min
You can find the book on Amazon right here.
RegTech is zooming in on the European Union’s Sixth Anti-Money Laundering Directive (6AMLD). This directive is due to take effect on 3rd December 2020, and carries substantial penalties for non-compliance. (Finextra) 2 mins
RegTech goes far beyond risk reduction and cost saving, according to this article in Planet Compliance. It can also add enormous business value by generating data insights and potentially transform the way a company operates. (Planet Compliance) 6 mins
Another recent article published by Planet Compliance analyses Innovation Hubs and Regulatory Sandboxes, comparing these two formats. (Planet Compliance) 12 mins
FinTech
The key challenge facing many FinTech players is that the regulators they deal with are not open enough, which can hinder their growth and expansion plans. This was one of the conclusions from the SCxSC Fintech Conference 2019 that took place in Malaysia recently. (TechinAsia) 3 mins
In Australia, the government has formed a Committee on FinTech and RegTech. The objective of the committee is to examine the size and scope of the opportunity for Australian consumers and business, the barriers to the uptake of new technologies in the financial sector, current practices and ways to strengthen them, as well as the effectiveness of current initiatives in promoting a positive environment for FinTech and RegTech firms. (ZDnet) 2 mins
Client Lifecycle Management firm Fenergo has revealed that slow and manual onboarding processes could lead to commercial and business banks individually losing $4.5 billion in revenue. The company says that commercial and business banks that rely on traditional processes to onboard new clients are in danger of becoming obsolete. (The FinTech Times) 2 mins
After a great deal of anticipation, Revolut has launched its services in Singapore. Customers can now open an account from their phones and start spending worldwide in over 150 currencies at the real exchange rate without hidden fees. (Finews.asia) 2 mins
UK challenger Starling Bank has raised £30 million in a new funding round. The capital will be used to strengthen its B2B offering and expand into European markets. Since launching its app in May 2017, Starling has opened 930,000 accounts. (Finextra) 2 mins
White Paper
What will compliance look like in 10 years? If you haven’t yet had a chance to read our new White paper the team at ClauseMatch prepared, you can do so by following this link (ClauseMatch website) appr. 1 hour
Technology
Finalists have been announced for the Banking Technology Awards. Revolut and ClauseMatch have been nominated in the Best Use of RegTech category. You can find the list of finalists in all categories here. (Banking Technology Awards) 2 mins
Financial institutions need to be more aware of how the data they provide to regulators is being used, says Herbert Smith Freehills in its 2019 Global Bank Review. Firms should be conscious that the information disclosed to one regulator could be disclosed to other regulators around the world. (Regulation Asia) 3 mins
AML
Dirty money has spread throughout the UK economy and is targeting prestige services such as private school education and luxury accommodation, according to Transparency International. The watchdog believes that up to £325 billion of dirty money comes in to the UK each year. (BBC) 2 mins
Countries should establish systems that use multiple methods to identify the beneficial ownership of an entity says the Financial Action Task Force (FATF). The intergovernmental body says that countries that rely on a single approach are less effective in obtaining accurate and timely information about the ownership of an entity. (The Wall Street Journal) 3 mins
Facebook’s relationship with banks could be threatened if it launches its digital currency Libra without fully addressing concerns over money laundering, according to a recent article in The Financial Times. ING CEO Ralph Hamers says that banks are the ‘gatekeeper’ to the financial system and they won’t bankroll companies that could put the financial system at risk. (Pymnts.com) 2 mins
