Corona and new regulations have challenged Compliance in 2020. A summary of the TOP topics
While AI can have great contributions to the fight of financial crime, one of the biggest problems with AI at present is the comprehension of the decision-making process. Explainable AI serves as a transparency technique by providing an explanation of the output, while maintaining a high level of prediction accuracy. This helps banks and financial institutions to tread the fine line of decision making in compliance.
Cross-border payment transactions promote international trade and services. However, foreign transactions entail an increased risk of financial crime. Credit institutions prevent this risk with effective correspondent bank monitoring and systematic analysis of payment messages.
For decades, IBORs set the benchmark rate for a wide range of financial products such as derivatives, bonds, loans, structured products, and mortgages to determine interest rates and payment obligations. Since the financial crisis, regulatory authorities and working groups all over the world have been discussing alternative risk-free rates (RFRs). Since the RFRs are distinctly different in amount and volatility to the IBOR interest rates, the transition will require considerable transformation efforts from both financial service companies and market participants.
Peer-to-Peer (P2P) payments are increasingly popular for their simplicity, speed, and global reach. Unfortunately, this also attracts financial crime. But often the responsibilities to fight crime is vaguely split between banks and payment intermediaries. However, both parties are under constant pressure to improve. Not just to keep up with the criminals, but also to keep up with regulators. Overall, the use of P2P payments will most likely increase in the future and therefore trust is crucial for its success.
EMIL is supposed to be an average German searching for his online identity. Digital Identities can differ a lot from the analog world. What are the benefits and risks of matching the digital and the analog world?
The EU Whistleblower Directive came into force in December 2019 to increase the protection of whistleblowers. Now, companies and authorities are required to set up notification systems. Reporting is particularly important in the Corona crisis in order to avoid risks or liability cases and to counter illegal behavior.
While Germany, Spain and Greece were popular vacation destinations in 2018, bookings for North Africa and Turkey are on the rise this year. No matter where to: more and more trips are not booked through a travel agency, but by tourists themselves on online travel platforms. In Germany, 40 percent of bookings already in 2017 – trend rising. The Internet
The art market is confronted with a new law, which comes with additional requirements. The 5th EU money laundering directive has been converted into national law on January 10. Now, art dealers and art brokers are obliged to identify clients and to assess risks. Affected are transactions with a value of 10,000 euros or more – not only the cash business, but all other transactions.