Compliance Resources to Help you Stay Current

The Email Privacy Act

Designed to reform and update the Electronic Communications Privacy Act (ECPA), the Email Privacy Act has been hailed as a much needed directive to restructure the ECPA regulations that came into being in 1986, well before the existence of the World Wide Web. Add to that the melee of the current presidential reforms, the passing of the Email Privacy Act has now become an urgent requisite than a reform.

Eurozone's Unemployment Rate Falls Below 10%

For the first time since 2011, unemployment rates dropped below 10 percent in the eurozone. Eurostat, an EU statistics agency, recorded the lowest rate in seven years - 9.9% in September, and a further dip from 9.8% in October.

The eurozone, also called the euro area, is a monetary union of 19 EU member states. This includes Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

Topping the global regulators' list of systemically important banks are Citi and JP Morgan, with HSBC vanquishing its spot to Citi and slipping down to accompany BNP Paribas, Deutsche Bank, and Bank of America.

Credit risk, market risk, operational risk, counterparty credit risk, interest rate risk, and capital floors – a list of things on the itinerary for Basel IV. While yet adjusting to the requirements of Basel III, the newer legislation will hit the financial market soon enough, bringing with it a flurry of rules to mitigate any signs of a financial crisis akin to the 2007-2009 collapse.

Basel IV reaches up and sets the bar higher for capital adequacy – a move that has caused much discomfort in the EU financial industry. While the initially discussed model sought to increase the capital requirements of European banks by around 90 percent, talks are on for a number between 30 and 50 percent – a percentile still too high for comfort.

On the agenda:

• With effect from 1 January 2017, updated haircut schedules for assets used as collateral in monetary policy operations
• Additional adjustments to haircut schedules to take effect by the end of 2017
• Measures aimed at maintaining adequate risk protection and improving consistency of the framework with a general minimal effect on aggregate collateral amount

With the view to ensure adequate risk protection, the ECB (European Central Bank) constantly reviews and makes adjustments to its collateral eligibility rules and its risk control measures applied while accepting collateral in the Eurosystem monetary policy operations. The Eurosystem refers to the monetary authority of the Eurozone - the EU member states that have adopted the euro as their official currency.

Corruption at a major sporting event takes away something from the integrity of the game. On an organizational front, corruption takes away from business integrity too. Consequently, committees have been set up, stringent laws have been enforced, and staggering penalties have been levied – but has the lesson hit home?

The laws that champion the cause are many, but here’s a look at a few global game changers.

Code Name Prometheus aka The Panama Papers

It has all the trappings of a spy thriller – an offshore corporation that creates shell companies for wealthy investors to evade tax, the big names involved, and a band of journalists hot on their trail for over a year. Pushing past WikiLeaks and Edward Snowden, the Panama Papers now leads as the biggest whistleblower in history – with over 2.6 terabytes of data to quantify it.

The Thing About Bitcoin

Are they risky or can they be the decentralized wonder currency that can make monetary transactions just that much easier? The question abounds shortly after Hollywood Presbyterian Medical Center paid a ransomware to regain control over their IT systems after an 11-day battle with hackers. The payment mode? 40 bitcoins worth about $17000.

Banking and Marijuana: Unlikely Partners in Fighting Crime?

Conflicting federal and state laws often set the stage for interesting and pressing debates. While the arguments over legalizing marijuana rages on, nothing really can be done to stop where this is headed. With one half of the US legalizing the use of marijuana in one form or the other, read medical or recreational, and four states and D.C. legalizing possession for recreational use, it’s no longer about the debates, it’s about creating a robust ecosystem to strengthen the legal parameters.

HSBC and Money Laundering: A Constant Battle

HSBC Holdings plc, the world's third largest bank by assets, has been in the news recently for money laundering in Geneva. HSBC has agreed to pay 40 million Swiss francs, the biggest financial penalty ever imposed by the Geneva authorities. The Swiss unit of the bank came into limelight when HSBC’s former IT worker Herve Falciani leaked details about clients involved in alleged tax avoidance to the French government. The French authorities later handed the information to tax authorities around the world. Geneva authorities raided HSBC offices in February 2015 after several media organizations published details of how HSBC’s Swiss unit allegedly helped wealthy clients avoid taxes. The U.S., French and Belgian authorities are still investigating tax evasion at the bank.

These guidelines set out the principles which the APRA uses to decide whether to authorize general insurers applying to conduct insurance business in Australia. It covers the - authorization process; minimum criteria to be addressed by applicants; and necessary information and documents to be submitted with an application. The overall licensing process takes 3 to 12 months.

This Prudential Standard specifies certain assets that are excluded from being treated as ‘assets in Australia’ by a general insurer. There are specific provisions applying to locally incorporated insurers and to Category C insurers.

The Financial Transaction Reports Act in South Korea was enforced to prevent criminal and money laundering activities through financial transactions by stipulating provisions for establishment of a sound and transparent financial system.

The Philippines formulated these guidelines for establishing banks in the country using the following core principles:

• Suitable shareholders
• Adequate financial strength
• Legal structure in line with its operational structure
• Management with sufficient expertise and integrity

The Philippines’ government enacted this anti-money laundering law in 2001 and it defines the crime of money laundering, details penalties for violating these rules and also provides guidelines for financial institutions on how to ensure compliance with the law. The Bangko Sentral ng Pilipinas (BSP) oversees the enforcement of this Act.

The guidelines, issued in the Philippines, cover the following:

A. Strengthening Corporate Governance
B. Risk Management Practices in Trust, other fiduciary business and investment management activities
 

This Prudential Standard specifies certain assets that are excluded from being treated as ‘assets in Australia’ by a general insurer. There are specific provisions applying to locally incorporated insurers and to Category C insurers.

These guidelines set out the principles which the APRA uses to decide whether to authorize general insurers applying to conduct insurance business in Australia. It covers the - authorization process; minimum criteria to be addressed by applicants; and necessary information and documents to be submitted with an application. The overall licensing process takes 3 to 12 months.

These Guidelines set out the fit and proper criteria applicable to all relevant persons associated with carrying out of any activity regulated by the Monetary Authority of Singapore (MAS).

• The objective of this Guideline is to ensure that the relevant person performs the regulated activities efficiently, honestly, fairly and acts in the best interests of its or his stakeholders and customers.

This Australian Prudential Standard aims at maintaining a specific reinsurance management framework to manage the risks arising from the regulated institution’s reinsurance arrangements. It applies to insurers and Level 2 insurance group. The ultimate responsibility for the reinsurance management framework of a general insurer rests with its Board of directors; and in the case of a Level 2 insurance group, with the Board of directors of its parent entity.