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- US Senators Warn That Iran Is Mining Bitcoin To Evade Sanctions
- Reserve Bank Of India Publishes Updated Guidance On Operational Risk Management
- Spanish AML Regulator Launches New Money Mule System
- Indian Regulator Opens New Market Study On AI And Competition
- DBS Bank To Resume Non-Essential Activities Following Six-Month Pause
- RuPay JCB Debit, Credit Cardholders Offered 25 Percent Cashback
- EU Calls Out France, Ireland, Latvia Over AMLD Transpositions
- Hong Kong Regulator Looks To Promote Fintech Adoption
- FCA Consults On Financial Crime Updates
- RBI Shuts Down Unauthorised Prepaid Wallet Provider
US Senators Warn That Iran Is Mining Bitcoin To Evade Sanctions
US Senators Elizabeth Warren (D-MA) and Angus King (I-ME) have written to the Biden administration to demand action against Iran’s mining of Bitcoin to evade sanctions and fund terrorism.
In a letter addressed to Treasury Secretary Janet Yellen, defence secretary Lloyd Austin and national security advisor Jake Sullivan, the two senators noted that since Iran legalised Bitcoin mining in 2019, it has become one of the world’s largest producers.
“In the five years since, Iran has raised millions of dollars through mining crypto — a steady revenue source that allows it to purchase imports, move funds domestically and internationally, and fund Hamas and other terrorist organizations,” they said.
“This ongoing activity by the Iranian government threatens our national security.”
In 2021, Iran is estimated to have mined about 7 percent of the global Bitcoin supply. Research indicates that Iran’s energy grid is frequently “strained” by Bitcoin mining operations, which were blamed for several “massive blackouts” in 2021.
The senators asked for further information on how the Biden Administration is addressing the threat posed to US national security by Iran’s Bitcoin mining activities.
Reserve Bank Of India Publishes Updated Guidance On Operational Risk Management
The Reserve Bank of India (RBI) has updated its Guidance Note on Operational Risk, first published in 2005.
Until recently, as noted by the RBI, the predominant operational risks faced by regulated entities stemmed from vulnerabilities related to rapid adoption of financial service and intermediation technology.
However, the financial sector’s growing reliance on third-party providers has highlighted the increasing importance of operational risk management and operational resilience.
Dependencies on third parties have accelerated due to the COVID-19 pandemic, the RBI noted, as businesses have increasingly turned to virtual working arrangements.
As such, the updated guidance seeks to assist regulated entities in using “strong internal controls” to minimise operational disruptions and continue to deliver critical operations.
Spanish AML Regulator Launches New Money Mule System
Spain's Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offences has launched a new system for making suspicious transaction reports (STRs) concerning mule accounts.
Entities that are obliged to use the system include payments and e-money institutions and crypto-asset service providers.
The new system will allow obligated entities to group information on several mule accounts into a single STR instead of submitting individual STRs for each detected and analysed mule account.
Until September 2024, reports will be made using the general format. Subsequently, reports will need to be made using the new system on a mandatory basis.
Indian Regulator Opens New Market Study On AI And Competition
The Competition Commission of India (CCI) has announced the launch of a new market study on AI and its effects on competition.
The proposed study will serve as a knowledge building exercise to develop an in-depth understanding of the emerging competition dynamics in the development of AI systems and applications.
The aims of the study are to understand key AI systems, ecosystems, value chains and market structures, and to understand the existing and evolving legal and regulatory frameworks governing AI systems.
The study will also consider the scope and nature of AI applications and use cases and assess their associated risks and opportunities from a competition perspective.
Firms are invited to take part in the study and have until June 3, 2024 to submit proposals to the CCI.
DBS Bank To Resume Non-Essential Activities Following Six-Month Pause
The Monetary Authority of Singapore (MAS) has announced that DBS Bank may resume non-essential activities following a six-month pause ordered by the regulator due to systems outages.
The six-month pause was designed to ensure that the bank kept a “sharp focus” on restoring the resilience of its digital banking services, said the MAS.
Although full implementation of a remediation plan is still ongoing, the MAS notes that DBS Bank has made substantive “progress” to address the shortcomings identified from service disruptions experienced by its customers in 2023.
“Improvements have been made to its technology risk governance, system resilience, change management, and incident management,” said the MAS.
“DBS Bank has committed to prioritise resources and dedicate management attention to complete the outstanding remediation measures.”
RuPay JCB Debit, Credit Cardholders Offered 25 Percent Cashback
The National Payments Corporation of India (NPCI) has announced that RuPay JCB debit and credit cardholders are eligible for 25 percent when spending abroad over the next three months.
During the offer period, customers using a RuPay JCB card will receive 25 percent cashback on in-store purchases in Indonesia, Malaysia, Singapore, Spain, Sri Lanka, Thailand, the US and Vietnam.
The maximum cashback amount per transaction will be ₹3,000 ($35), with an overall cap of ₹15,000 ($180) per card during the offer period.
RuPay and JCB said the cashback initiative is part of a broader strategy to expand their global network, noting that incentivising international spending remains a “top priority”.
EU Calls Out France, Ireland, Latvia Over AMLD Transpositions
The European Commission has decided to open an infringement procedure by sending letters of formal notice to Ireland and France and an additional letter of formal notice to Latvia for having incorrectly transposed the 4th and 5th Anti-Money Laundering Directives.
These member states had notified a complete transposition of the amended directive. Nevertheless, the commission has identified several instances of incorrect transposition (non-conformity) of the directive into national law.
France and Ireland’s failings are linked to beneficial ownership rules, while in the case of Latvia, incorrect transposition is affecting the functioning of its financial intelligence unit (FIU) by limiting its obligation to exchange information with other FIUs.
The three member states now have two months to respond and address the shortcomings raised by the commission, and in the absence of a satisfactory response, the commission may decide to take further action.
Hong Kong Regulator Looks To Promote Fintech Adoption
The Hong Kong Monetary Authority (HKMA) started this week by launching its FiNETech series, gathering around 100 financial and technology firms to explore collaboration opportunities in areas such as AI and distributed ledger technology (DLT).
FiNETech is supported by financial regulators, industry associations representing the banking and fintech ecosystem, as well as technology companies and market experts.
In the next six to 12 months, the HKMA will expand joint efforts in fintech areas through the FiNETech series. This initiative will focus on delving deeper into topics like AI, including generative AI, as well as DLT and greentech through additional FiNETech sessions.
The objective is to drive substantial advancements in fintech adoption by banks and other financial institutions, while also facilitating the exploration of innovative use cases and best industry practices.
Additionally, the HKMA aims to provide further practical guidance on priority themes, drawing from global developments and international experiences as appropriate.
FCA Consults On Financial Crime Updates
The UK's Financial Conduct Authority (FCA) has opened a new consultation focused on financial crime guide updates that targets all FCA-supervised firms.
The consultation aims to gather feedback on proposed amendments to the FCA's Financial Crime Guide, and covers areas such as sanctions, proliferation financing and transaction monitoring.
Additionally, the FCA intends to incorporate references to crypto-assets and its flagship Consumer Duty policy.
Stakeholders have until June 27 to respond and can do so via written form, email or an online form.
RBI Shuts Down Unauthorised Prepaid Wallet Provider
The Reserve Bank of India (RBI) has requested that TalkCharge Technologies discontinue its prepaid wallet service due to lack of authorisation from the central bank.
The RBI initially demanded that TalkCharge shut down its wallet within 15 days of receiving a cease and desist order, but this was extended to 45 days as per TalkCharge’s request. The RBI also demanded that all balances are returned to customers.
TalkCharge should have applied for and obtained a Prepaid Payment Instruments (PPI) licence from the RBI to offer the digital wallet product.
The central bank is urging Indian consumers to check its list of authorised providers before signing up to a new PPI service.
