Dr. Ruth Wandhöfer

The SRB today publishes its Operational Guidance for Banks on Resolvability Self-Assessment, a key step in implementing the SRM Vision 2028 This new guidance supports a consistent, comparable, and transparent approach to resolvability self-assessments across the banking sector. It reflects lessons learnt from past crises and incorporates valuable feedback from the industry from the recent public consultation held from December 2024 to February 2025 Key improvements include: ✅ A simplified and standardised self-assessment template ✅ A 20% reduction in resolvability capabilities ✅ Biennial reporting and a less granular structure for testing activities The guidance helps banks document their progress in meeting the Expectations for Banks and test the effectiveness of their capabilities in practice The first self-assessment report, reflecting the situation as of 31 December 2025, is expected by 31 January 2026 📄 Read more here: https://lnkd.in/eKaX-ajp #SRB #Resolvability #BankResolution #SRMVision2028 #EUfinancialstability #BankingUnion #EfB

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EBA report: Areas of increased ML/TF risk in CASPs The European Banking Authority (EBA) recently published a report focusing on how supervisors can tackle money laundering and terrorist financing risks in crypto-asset service providers (CASPs). The report highlights specific areas where certain firms may be more vulnerable to financial crime risks particularly when internal controls are still developing. Two risk areas drew my attention: 1️⃣ 𝗦𝗮𝗻𝗰𝘁𝗶𝗼𝗻𝘀 𝗲𝘅𝗽𝗼𝘀𝘂𝗿𝗲 According to the EBA, where sanctions-screening tools are not sufficiently effective - and where internal processes for reviewing alerts are limited - firms may face challenges in identifying true matches against sanctions lists. This increases the likelihood of transactions involving sanctioned individuals or jurisdictions being processed unknowingly. 𝗥𝗲𝗺𝗲𝗺𝗯𝗲𝗿: Non-compliance with sanctions requirements can lead to serious regulatory, legal, and reputational consequences. 2️⃣ 𝗚𝗮𝗽𝘀 𝗶𝗻 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗧𝗿𝗮𝘃𝗲𝗹 𝗥𝘂𝗹𝗲 The report highlights that where the Travel Rule is not properly implemented, CASPs are unable to transmit required information about the originator and beneficiary of cross-border transactions. Without this information, it becomes difficult to establish who is behind a transaction, which increases the risk that illicit actors can move funds anonymously - without being identified or linked to suspicious activity. 𝗥𝗲𝗺𝗲𝗺𝗯𝗲𝗿: Failure to comply with the Travel Rule eliminates the ability to identify the individuals behind transactions, which is essential for detecting and preventing money laundering, terrorist financing, and sanctions evasion. The message from supervisors is clear: where AML/CFT frameworks are still evolving, risks are more likely to become a reality. 𝗗𝗼 𝘆𝗼𝘂 𝗵𝗮𝘃𝗲 𝗲𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝗰𝗼𝗻𝘁𝗿𝗼𝗹𝘀 𝗶𝗻 𝗽𝗹𝗮𝗰𝗲? If yes, well done. Ensure that, as a CASP, you can demonstrate that you -> have implemented effective controls and that -> they work in practice. The report provides timely guidance - not only for supervisors, but also for compliance professionals seeking to strengthen their frameworks. Are your systems designed with these risks in mind?

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🛡️ The FCA has sharpened its focus on consumer protection with planned changes to safeguarding rules for payment and e-money firms, aiming to prevent shortfalls in customer funds. Get up-to-date on this week's top stories: https://lnkd.in/eMw75hHP #FCA #Finance #Regulation

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Banking & Payments Federation Ireland has responded to the European Banking Authority (EBA)'s draft Guidelines on the sound management of third-party risk.   Our members fully support the EBA’s objective of enhancing governance, operational resilience, and supervisory convergence across the EU financial sector. However, the proposed expansion from traditional outsourcing to all third-party arrangements represents a significant broadening of the regulatory perimeter. While aligned in spirit with evolving third-party risk management (TPRM) practices, this framework will only succeed if it is proportionate, harmonised and operationally feasible.   BPFI’s key recommendations include: • Embed stronger proportionality – Ensure requirements reflect the nature, scale and complexity of firms and services. Proportionality must be central to rules on contracts, due diligence, intragroup arrangements and the Register of Information. • Ensure full alignment with DORA – Mirror DORA definitions and remove legacy elements from the 2019 outsourcing framework to avoid dual CIF regimes and duplication. • Focus on materiality and scope – Apply the Guidelines to arrangements that materially impact operational risk or resilience, and confine subcontracting rules to material subcontractors. • Promote consistent implementation – Encourage faithful and harmonised adoption by NCAs to avoid national gold-plating. • Adjust transitional timelines – Introduce a realistic implementation phase: a 9-month window post-publication, and remediation by the next contract renewal or two years from application, whichever is later.   👉 Read more about our key recommendations and full submission here - https://lnkd.in/e3RemqzY   #regulation #DORA #operationalresience #risk #EUfinancialsector #BPFI

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📢 The European Payments Council has published today a new list of standard test cases to support the implementation of the Verification of Payee (VOP) scheme. The release includes: ✅ Reference IBANs ✅ IBAN-prefixes ✅ Corresponding Account Holding BICs Read more here 👉 https://lnkd.in/evsTtNPM

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We were delighted to host a DFSA Outreach session, following the publication of a Thematic Review on Fund Management Self-Custody. The report examined Fund Managers’ effectiveness and compliance with relevant DFSA Rules and Laws, recognised good practice and identified areas for improvement that merit wider adoption. It also identified outliers and instances of material non-compliance for further action. Thank you to every one who joined us at this DFSA Outreach session – we encourage Firms to continue to proactively engage with us on this important topic. Access the full report here: https://lnkd.in/giZpYANA #DFSA #DIFC #Dubai #UAE #Regulation #Regulator #ThematicReview #FundManagement 

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AUTHORITIES say they are going to engage with the banking sector to review bank charges in order to encourage people to use banking services. This comes as Cabinet has approved the review and reduction of bank charges, transfer fees to promote banking and licences, in the retail and wholesale sectors in line with business reforms in 12 sectors of the economy.>https:// tinyurl.com/43rbjurz

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A long-awaited clarification from the European Banking Authority has failed to resolve a divide among EU banks over the capital burden of long-tenor trade finance products. Lenders had hoped that a technical document published by the EBA last month would clear up confusion over whether they need to double capital buffers on trade finance products with a maturity of more than one year.

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Our Head of Investment Services Supervision, Ian Meli, recently participated in a Harvard Law School Executive Education programme organised in partnership with the Program on International Financial Systems (PIFS) focused on “𝐓𝐡𝐞 𝐄𝐯𝐨𝐥𝐯𝐢𝐧𝐠 𝐑𝐨𝐥𝐞 𝐨𝐟 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐆𝐥𝐨𝐛𝐚𝐥 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐒𝐲𝐬𝐭𝐞𝐦.” From blockchain foundations to digital assets in financial services and new approaches to cybersecurity, the programme highlighted just how fast the financial world.

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📢EBA ML/TF Risks Opinion: “Significant change” in the ML/TF risk landscape has been noted by the European Banking Authority’s 2025 Opinion on money laundering and terrorist financing risks affecting the EU’s financial sector. The Opinion found that new ML/TF vulnerabilities are emerging in a context of important geopolitical developments, legislative reforms and digitalisation. The European Banking Authority (EBA)’s assessment has highlighted the following observations: ·        FinTech: 70% of competent authorities report high or rising ML/TF risks in the financial sector. They point to weak AML/CFT controls and poor governance, as firms appear to prioritise growth over compliance. ·        RegTech: over half of serious compliance failures reported to the EBA’s EuReCA database involved the improper use of RegTech tools. Despite its potential to enhance compliance, RegTech is often poorly implemented due to lack of expertise and oversight. ·        Crypto Assets: this remains a high-risk sector, with a 2.5-fold increase in authorised crypto-asset service providers (CASPs) between 2022 and 2024. Many CASPs lack effective AML/CFT systems, and some attempt to bypass regulatory oversight. ·        Fraud and AI: criminals are increasingly using AI to automate laundering schemes, forge documents, and evade detection. Financial institutions struggle to keep pace with these sophisticated threats, highlighting the need for responsible AI use and robust monitoring. ·        Restrictive Measures: the complexity of EU sanctions regimes poses compliance challenges. Institutions often lack adequate systems to implement sanctions effectively. The EBA’s new Guidelines, applicable from end-2025, aim to harmonise standards across the EU. Read the opinion here: https://lnkd.in/dPVDMZTc #ML/TF #AML #EBA #AntiMoneyLaundering

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