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 […]
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 […]
ANNA FIXes Tech Specs for OTC ISIN Allocation
If operations and IT managers of the biggest trading firms and trading platforms have been wondering exactly how they’ll get their hands on International Securities Identification Numbers (ISINs) for over-the-counter derivatives when they need them for transaction reporting under Europe’s Markets in Financial Instruments Directive (MiFID), they found part of the answer last week. […]
OTC Derivatives Players: The ISIN Engine Emerges (Updated)
Editor’s Note: On September 20, ANNA announced that the automated allocation engine for international securities identification numbers for OTC derivatives would also support the derivatives product taxonomy created by the FIX Trading Community as well as other open-standard product taxonomies. The mapping of the FIX taxonomy with the ISO taxonomy is set to be completed […]
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 […]
FATCA, GATCA Tax Patience of Relationship Managers
Relationship managers on the front-lines of interacting with investors or customers say that complying with the Foreign Account Tax Compliance Act (FATCA) and its global version Common Reporting Standards (CRS) is giving them plenty of angst. The requirement to identify the investor or customer for tax purposes may conflict with the equally important need to […]
Catching an Insider Data Thief
Ten percent of employees will never commit a crime, ten percent of employees will, while 80 percent will only do so if the opportunity arises, predict fraud experts. It is that opportunity which asset management firms need to prevent through a combination of compliance controls and technology, say panelists and attendees at a recent symposium […]
Asset Managers Attack Data Silos with Governance
Data governance isn’t just for megabanks anymore. Asset managers are gradually joining the crowd of believers, creating rulebooks for how data quality is ensured enterprisewide with business lines at the helm. That was the consensus of panelists and attendees at a TSAM North America fund management operations event last month where data management took center stage […]