They want what? Compliance, legal and IT departments have good reason to be alarmed when a subpoena, regulatory request, or internal investigation triggers an e-discovery process. The answers to questions about possible criminal or other illegal activity are hidden in a mountain of institutional data, say panelists and attendees at a recent Legalweek event hosted […]
Variation Margin: Facing the Countdown to March 1
With less than three weeks left until posting variation margin for uncleared swap transactions becomes mandatory, it’s do or die for fund managers still scrambling to be ready by March 1. As FinOps Report went to press, the US Commodity Futures Trading Commission (CFTC) said in a no-action letter that it would not take any […]
New York Raises Bar on AML and Sanctions Programs
Some US and foreign banks with New York offices will soon face the challenge of proving that their transaction monitoring and sanctions filtering programs for catching criminal activity really work. The New York Department of Financial Services (DFS) believes that although banks and banking-regulated institutions may already have AML programs, there are still too many illegal […]
RegTech 2017: Taking FinTech the Extra Mile
Those who think that RegTech is only about technology geared to meeting regulatory requirements should think again. The term, say operations consultants and IT specialists, also represents a new state of mind, oriented toward maximizing the use of current applications, eliminating unnecessary ones, and reducing data discrepancies. “Whereas financial technology, or FinTech for short, focuses strictly […]
Cybersecurity and AML: How the Twain Must Meet?
What is the connection between a bank’s cybersecurity breach or event and money laundering? The same criminal. says the US Treasury’s Financial Crimes Enforcement Network. That’s why FinCEN wants financial firms to include information on cybersecurity events or breaches on their suspicious activity reports (SARs). Doing so will ensure that the financial firm is on […]
Europe’s PRIIPs: When Being Clear Isn’t All That Easy
Fund managers, banks and insurance firms can now breathe a collective sigh of relief, but not for long. The European Commission has just announced that it has postponed by one year the implementation date for new legislation requiring financial firms to more clearly explain the risks and rewards of some investment products that fall under […]
Swing Pricing for US Funds: Has the SEC Gone Far Enough?
Like it or not, fund managers will have to make peace with the Securities and Exchange Commission’s new investment company reporting modernization program and liquidity management guidelines. They’re going to have to accept doing more to curb their liquidity risk and disclose more about their investment composition. Oddly, it’s a voluntary aspect of the new SEC […]
Equity Derivatives Withholding Tax Remains Taxing (Updated)
(Editor’s Note: On November 14, 2016 SIFMA asked the US Treasury to postpone the implementation date of IRS Section 871(m) from January 1, 2017 so that it can resolve a difference of opinion with G5 countries. The UK, Germany, Spain, France, and Italy have told the Treasury that dividend equivalent payments made outside the US […]
Artificial Intelligence: The Next Frontier in AML Compliance
Concerned about potential regulatory fines and skyrocketing costs, the world’s largest banks are turning to artificial intelligence to improve their compliance with know-your-customer and anti-money laundering regulations. “The value proposition for AI solutions is highest for large banks with significant volumes, complexity, multiple lines of business and geographical reach as these banks are affected most […]
Northern Trust Minds the Corporate Actions Gap
A successful investment strategy is about more than just buying and selling the right stocks at the right price at the right time. It also depends on picking the best option when it comes to voluntary corporate actions or being able to recognize a bad decision after the fact. Northern Trust is helping its asset […]