Financial firms across the globe will likely have to think out of the box and pray they make the right AI governance strategy to comply with Europe’s Artificial Intelligence Act (AI Act) over the next two years. Embracing AI’s ability to reduce operating costs and increase efficiency the financial services industry is expected to spend up […]
Drug Cartels As Foreign Terrorists: AML Spotlight
US President Donald Trump’s decision in January to classify drug cartels as foreign terrorist organizations and specially designated global terrorists has put anti-money laundering compliance executives at US financial institutions doing business in Latin America on high alert when it comes to their AML programs. Based on the US Department of State including eight drug […]
SEC’s Take on Predictive Data Analytics: A Failed Prediction?
Mindboggling isn’t a word often used when discussing proposals issued by the US Securities and Exchange Commission, but the latest one for registered investment advisers and broker-dealers about addressing conflicts of interest when using predictive data analytics (PDA) and PDA-like technology appears to be a notable exception. If adopted as drafted, the SEC’s requirement would […]
Archegos Debacle Prompts Holistic Counterparty Risk Management
The recent implosion of family office Archegos Capital Management should renew interest in counterparty risk management and the need for a holistic program, say some broker-dealer risk management experts. By JP Morgan’s estimates the fallout may have cost some prominent prime brokers, such as combined as much as US$10 billion in trading losses. Archegos’ betting […]