Systemic Risk Exposure: £300M+ Liability and Regulatory Failures

An ex-Societe Generale SA banker, along with a group of traders, has been ordered to face a criminal trial in France for allegedly profiting approximately €18 million ($21.1 million) from insider information related to a U.S. stock nearly a decade ago. This case underscores the importance of ethical conduct in finance and the ongoing scrutiny within the industry. via Bloomberg BNA #LegalNews #riskmanagement #risk #trading https://lnkd.in/gdNZXZy6

Thresholds, Timelines, and Regulatory Gaps ➡️ Discuss the challenges for North American bank issuers given the absence of published thresholds like those in the EU’s STS framework. ➡️ What methods are issuers implementing to navigate and how does this impact the deal timeline? ➡️ Analyze the regulatory expectations regarding retained risk, deal size, and risk transfer thresholds. Are there inconsistencies between the Fed, OCC, and FDIC? ➡️ How can regulators strike a balance between enabling innovation and managing risks? ➡️ Basel III Endgame: - What factors have contributed to the implementation delay and how would this impact U.S. banks’ capital planning and stress tests? - With the U.S., EU, and UK on different timelines, how will this affect risk modeling and capital allocation for globally active banks? - How might a reconfigured regulatory landscape affect megabanks versus regional banks? ➡️ Regulatory interplay for regionals – is this the same as G-SIBS or are local Feds less supportive? 🔹 Christopher Horn (Moderator), Partner | Cadwalader, Wickersham & Taft LLP 🔹 David Lucking, Partner | Linklaters LLP 🔹 Devi Aurora, Managing Director & Head, Financial Institutions & Alternative Funds Ra | S&P Global Ratings 🔹 Jennifer Bearden, Senior Director | International Association of Credit Portfolio Managers (IACPM) 🔹 Matthew Bisanz, Partner | Mayer Brown LLP SRT 2025 | Significant Risk Transfer 🗓️ October 6, 2025 📍 New York Marriott Downtown, NY, U.S. 🔗 Learn more and secure your conference ticket: https://hubs.ly/Q03LGbLn0 #SRT #GetDealsDone #Structuredfinance #DealCatalyst

The Risk-Based Approach is designed to strengthen financial crime compliance, yet when misapplied it can expose banks to regulatory sanctions and reputational damage. Our latest piece examines how recent FCA cases show the dangers of treating RBA as flexibility rather than accountability. https://wix.to/Mxegn0f #FinancialCrime #AML #Risk #RBA #RiskManagement #Compliance #Banking #Regulation

The Risk-Based Approach is designed to strengthen financial crime compliance, yet when misapplied it can expose banks to regulatory sanctions and reputational damage. Our latest piece examines how recent FCA cases show the dangers of treating RBA as flexibility rather than accountability. https://wix.to/Mxegn0f #FinancialCrime #AML #Risk #RBA #RiskManagement #Compliance #Banking #Regulation

As regulatory pressure intensifies, financial crime reform in the UK is entering a new phase. Our latest article explores how upcoming legislative changes will reshape expectations for firms operating across financial services, private wealth, asset management, and beyond. Key highlights include: • The new “failure to prevent fraud” offence under the ECCTA (effective 1 September 2025) • Enhanced requirements under the Money Laundering Regulations (MLRs) • Clarification of UK domestic PEP rules and evolving FCA guidance • Practical steps firms should take now to prepare Read the full analysis by Andrew Wingfield, John Verwey, Anna Maleva-Otto, Sulaiman Malik and Michael Singh for deeper insights and practical guidance: https://lnkd.in/grNmiP8h #Proskauer #FinancialRegulation #FinancialServices #RegulatoryMergersandAcquisitions

Basel Endgame SRT carve outs unlikely, but industry need not despair... Top structured finance lawyers, Matthew Bisanz, Stuart Litwin and David Lucking, spoke about the prospects of SRT-specific relief in upcoming US regulatory changes at DealCatalyst's recent conference. While they do not expect major carve outs in the upcoming Basel Endgame re-proposal, some improvements are still expected for the industry. They also discussed some emerging visibility on the position of the other US banking regulators beyond the Fed: the OCC and FDIC, regarding their view of SRTs. Lobbyists have been working towards industry-wide relief on the commodity pool operator issue, which is a complex but key obstacle in the US market. (I encourage you read both my pieces on the matter/ DM me with questions). Discussions proved particularly interesting, highlighting that there may be multiple avenues to solving this issue, including leaning on the work of other, larger industry groups. Though the environment in Washington is viewed as industry-favorable, securitization may not be top priority and thus getting improvements for the SRT market will need to accompany broader efforts. Unfunded insurance participation is not expected to be permitted on US SRT deals anytime soon despite movement on this both in Europe and the UK. https://lnkd.in/dEkkWd9V https://lnkd.in/eWPi7Hft #SRT #Basel #Regulation #Securitization

The Financial Action Task Force (FATF)'s new guidance will force countries to strike a better balance between #AML / #CFT compliance and financial inclusion, writes Nathan Lynch. https://lnkd.in/d9Q7U598

🌍🔹 𝐃𝐚𝐲 𝟑 | 𝐓𝐡𝐞 𝐓𝐡𝐫𝐞𝐞 𝐒𝐭𝐚𝐠𝐞𝐬 𝐨𝐟 𝐌𝐨𝐧𝐞𝐲 𝐋𝐚𝐮𝐧𝐝𝐞𝐫𝐢𝐧𝐠 💸 Money laundering is not just a financial crime it’s a global threat that fuels corruption, terrorism, and organized crime. To effectively combat it, we must understand its three key stages: 🔹 Placement - Introducing illegal funds into the financial system (e.g., cash deposits, buying assets). 🔹 Layering - Moving the money through complex transactions to obscure its origin (e.g., multiple transfers, offshore accounts). 🔹 Integration - Reintroducing “cleaned” money back into the economy as legitimate funds (e.g., investments, businesses). 👉 By recognizing these stages, financial institutions, regulators, and professionals like us can detect red flags earlier and disrupt criminal networks. 💡 Awareness is the first step in the fight against financial crime. #AML #Compliance #FinancialCrime #RiskManagement #AntiMoneyLaundering

I’m excited to announce that I was quoted twice as a financial crime expert on the cover story in the October issue of The Banker, including the final word in their cover story on the 50 fastest-growing global banks. The article examines how brand growth and reputational risk are becoming deeply intertwined, particularly for fast-scaling institutions where scrutiny intensifies as growth accelerates. My closing comment focused on the reputational compounding effect of repeated control failures: “Customers don’t expect perfection, but they do expect honesty. If banks own their failures, work with regulators, and show progress, trust follows.” This quote wasn’t about headlines. It was about pattern recognition, and the long-term consequences when governance becomes reactive instead of preventive. Thank you to The Banker’s team for the opportunity to contribute to this conversation at the global level. #FinancialCrime #Compliance #London #UnitedKingdom #AML

Financial crime is a systemic risk to trust, innovation and growth. In a recent speech at the 1LoD Financial Crime Summit, Steve Smart, FCA's Executive Director of Enforcement, made it clear that tackling financial crime is critical. He believes that financial crime is still being seen as a lesser offence, despite its power to fuel serious infractions like terrorism and damage consumer spending habits. "Financial crime doesn’t just steal money - it also steals confidence. When people lose money to fraud, they understandably become more cautious. They lose trust in the system. That has consequences. Without it, fewer people invest. Innovation slows and markets suffer. Capital doesn’t flow where it’s needed. If we want a confident, competitive economy, tackling financial crime isn’t optional – it’s a prerequisite for growth." At Brighter Consultancy, we couldn't agree more. We're helping clients across financial services to: ➡️ Detect vulnerabilities earlier ➡️ Strengthen controls across all three lines ➡️ Collaborate with regulators and partners ➡️ Prepare for growing scrutiny under the Economic Crime Plan and ECCTA Now is the time for firms to move from reactive to proactive. The cost of inaction isn't just compliance risk, it's lost capital, lost confidence and lost ground. Read more on the speech here: https://lnkd.in/ezaJ_Vbx Talk to us about your next steps today. #FinancialCrime #EconomicCrime #Governance #AML #RiskManagement