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- Tokenisation And Programmability Project A Success, Says UK Finance
- Latvijas Banka Issues Warning To SIA Transact Pro Over Capital Requirement Breach
- Hungary Sees Surge In Instant Credit Transfers In Q2 2024
- Chinese-Language Money Service Business Hit By AML Fine In Canada
- OCC Takes Enforcement Action Against Wells Fargo Over AML Deficiencies
- Cypriot Authorities Issue New Digital Onboarding Guidelines
Tokenisation And Programmability Project A Success, Says UK Finance
UK Finance has announced the successful completion of the Regulated Liability Network (RLN) Experimentation Phase.
This new financial market infrastructure, designed to enhance payments and settlement systems, promises capabilities such as tokenisation and programmability.
Since April 2024, UK Finance has partnered with Barclays, HSBC, Visa, Mastercard and technology firms such as R3 and Quant, exploring use cases and potential benefits such as fraud reduction, increased home-buying efficiency and lower costs for failed payments.
Key findings highlight that the RLN, in collaboration with initiatives such as open banking, could spur market innovation, offering programmable payments and a platform for new firms to engage with established institutions.
According to UK Finance, the legal framework in the UK is flexible enough to support such advancements, paving the way for ongoing industry and regulatory collaboration.
With this phase completed, UK Finance encourages further engagement as the industry moves forward in transforming the UK payments landscape.
Latvijas Banka Issues Warning To SIA Transact Pro Over Capital Requirement Breach
SIA Transact Pro, a Latvia-based licensed provider of payment card issuing, acquiring and online payment acceptance tailored services, has been censured by the local financial regulator for compliance failures.
Latvijas Banka's Supervision Committee has issued a formal warning to the e-money institution for failing to meet capital requirements outlined in the Law on Payment Services and Electronic Money.
The central bank has also mandated that the company revise its internal control systems within three months to enhance its management information processes and improve the planning of its own funds.
In response, SIA Transact Pro is currently taking corrective actions, the regulator noted.
Hungary Sees Surge In Instant Credit Transfers In Q2 2024
The total value of instant credit transfers in Hungary increased 28.4 percent year-on-year in Q2 2024, according to data released by the country’s central bank, Magyar Nemzeti Bank.
The proportion of household accounts initiating mobile credit transfers also rose sharply, with 38 percent of accounts using this method during the quarter. And more than 5,000 new card acceptance points came online, contributing to a 4.6 percent increase in POS terminals.
Although the number of cash withdrawals dropped by 4 percent, their total value fell by 12.1 percent, signalling a shift towards digital payments, especially as payment service providers' revenues grew by 11.1 percent.
The number of card-related fraud incidents fell by 8.9 percent from the previous quarter, although the total value of fraud increased by 2 percent.
Phishing, psychological manipulation and unauthorised access to payment methods were the most common fraud tactics. Fraud in non-card transactions also decreased in value by 6 percent, as providers enhanced fraud prevention measures.
Chinese-Language Money Service Business Hit By AML Fine In Canada
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has fined Canada Changjiang Management, a money service business that caters to Chinese-speaking clients, C$315,000 ($230,000) due to anti-money laundering (AML) failures.
In a statement, the regulator said the fine relates to conduct observed in 2022.
Following a compliance examination, Canada Changjiang Management was found to have failed to submit suspicious transaction reports where there were “reasonable grounds” to suspect money laundering or terrorist financing activity.
The company also failed to report large cash transactions and electronic funds transfers of C$10,000 ($7,350) or more, and failed to maintain written compliance policies and procedures.
FINTRAC noted that the administrative penalty has been paid and the proceedings have now ended.
OCC Takes Enforcement Action Against Wells Fargo Over AML Deficiencies
The Office of the Comptroller of the Currency (OCC) has come to a formal agreement with Wells Fargo Bank, having uncovered significant deficiencies in the bank’s anti-money laundering (AML) controls and financial crime risk management practices.
The enforcement action highlights issues in areas such as suspicious activity and currency transaction reporting, customer due diligence and the bank’s customer identification and beneficial ownership programs.
Wells Fargo, which is one of the US’ largest financial institutions, has committed to take corrective actions to enhance its compliance with the Bank Secrecy Act and AML and sanctions rules.
Cypriot Authorities Issue New Digital Onboarding Guidelines
The Cyprus Securities and Exchange Commission (CySEC) has released a new policy statement aimed at enhancing non-face-to-face (NFTF) customer onboarding using electronic methods.
Published on September 6, 2024, the policy targets entities such as crypto-asset service providers (CASPs) and aims to ensure compliance with anti-money laundering (AML) regulations under the Prevention and Suppression of Money Laundering Activities Law of 2007.
The policy outlines how firms should implement the suggestions from the earlier consultation paper (CP-02-2020), particularly regarding remote customer onboarding solutions (RCOS).
It mandates a comprehensive risk assessment before adopting specific technologies and provides guidelines to ensure that onboarding processes meet regulatory standards, while also aligning with the European Banking Authority’s guidelines.
Entities must notify CySEC before employing these methods, although prior authorisation to do so is not required.
