Earlier this year, FICO reported a startling fact about fraud on UK debit cards. Cross-border fraud had risen 25% in 2014 over 2013. But the real eye-opener was this: 47% of the cross-border fraudulent transactions were taking place in the US.
The relationship between money laundering and reporting entities and the fourth money laundering directive - A critical reflection
‘The relationship between money laundering and reporting entities and the fourth money laundering directive - A critical reflection’
The resolution of financial institution groups dispersed over several member states has been a persistent challenge. The Bank Recovery and Resolution Directive (BRRD) which seeks to establish a harmonised regime to manage distressed financial institutions, and the Directive on the Reorganisation and Winding-Up of Credit Institutions (WUD), which seeks to determine the jurisdiction in a reorganisation or liquidation procedure, seem to only partially ameliorate this challenge. Recent decisions in Goldman Sachs International v Novo Banco SA (Novo Banco) (Queen’s Bench) and Bayerische Landesbank v Hypo Alpe Adria Bank International AG (HAA) (Regional Court (Landgericht) of Munich) suggest that (English and German) courts take a narrow view on the application of the measures set out in the BRRD and WUD. The failure to strictly apply the provisions set out in the BRRD and WUD will result in the resolution measure not being recognised in another member state. The article will explore the motivation of the decision and options to alleviate the problem of cross-border recognition.
Dispute settlement in international investment agreements and the rules of an Indian model bilateral investment treaty
Coverage and procedures for dispute settlement in international agreements on investment and trade are proving increasingly controversial. The current controversy reflects contentious issues in two ongoing plurilateral negotiations, on the TPP (Trans Pacific Partnership) and TTIP (Transatlantic Trade and Investment Partnership). The targets of contention include provisions designed to achieve regulatory convergence among the participants in negotiations regarding subjects such as environmental regulation and intellectual property rights. Moreover, the rules agreed under these agreements will increase the scope for private investors to bring suits against governments for future losses imputed to changes in regulation and other official actions under the procedure known as Investor-State Dispute Settlement (ISDS).
Andrew Tyrie MP, the chairman of the Treasury select committee who is leading attempts to reform banking, is one of the latest high-profile figures to warn of the risks posed by high-frequency trading (HFT) in equity markets.
Strengthening internal governance for banks and insurers is an issue for European and Dutch bank and insurance supervisory authorities.
Since its report of June 2012 (prepared in collaboration with the IMF and the World Bank) the Financial Stability Board (FSB) has monitored the consequences for emerging market and developing economies (EMDEs) of the reforms agreed as part of the international reform agenda. An important objective of this monitoring is to check whether the consequences have been those intended by the agenda’s framers (FSB, 2012; FSB, 2013; and FSB, 2014a).
New security guidelines come into effect on 1 August 2015 for most European countries, excluding the UK, Slovakia and Estonia.
The arrests in May 2015, of some of the senior officials within FIFA (Dept. Of Justice, 2015) not only provides content for the media, it also provides financial practitioners and academics with an opportunity to study some of the emerging insights of crime within global enterprises. This includes a deeper understanding of the alleged levels of bribery, money laundering and corruption within one of the largest sporting organisations in the world (Phillips, Hills & Graham, 2015). It also provides an opportunity to review again the processes by which the formal financial services sector has been used as a conduit for moving illicit funds. This paper explores some of the developments and mechanisms behind the money laundering accusations and considers the impact for the banking and financial services sector.
Government borrowing – through the issuance of bonds on capital markets – default and debt restructuring has been a constant feature of the global economy for centuries.
Banks have already ‘paid the price’ for market manipulation in so far as they have paid billions of fines in British pounds and US dollars to regulators. However, none of those fines have made their way back to customers. As a result, we are now seeing a wave of civil claims being brought against banks seeking to recover losses. In the main, claimants are corporates, institutional investors such as hedge or pension funds, high-net-worth individuals and local authorities. London is a natural starting point, as English law concepts relating to implied terms or representations, conspiracy and breach of fiduciary duty are sufficient to mount claims.
The rapidly evolving regulatory landscape is forcing Financial Institutions (FIs) to implement significant structural changes regarding capital adequacy, stress testing, model risk management, governance, compliance and data quality. FICO recently partnered with Chartis Research to survey more than 100 risk management professionals around the world to understand how the global banking industry is progressing with these changes.
Legal and practical risks of submitting SARs on ML– A comparative analysis of the UK and UAE regimes
A suspicious activity report contains information on a specific, suspicious transaction or activity related to money laundering or proceeds from criminal activities.
The legal ruling against Crédit Agricole in May 2015, which was filed for failing to report a suspicious transaction, is one of a number of anti-money laundering compliance-related cases to be taken against a major bank.
The relationship between money laundering and reporting entities and the fourth money laundering directive – A critical reflection
The aim of this paper is to critically consider the appropriateness and effectiveness of the UK’s anti-money laundering reporting obligations under the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007.