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Hypo Vorarlberg Bank Fined In Austria Over AML Lapses
The Austrian Financial Market Authority (FMA) has imposed a fine of €791,000 ($880,000) on Hypo Vorarlberg Bank AG for failing to meet due diligence obligations aimed at preventing money laundering and terrorist financing.
The penalty stems from breaches related to the Financial Market Money Laundering Act (FM-GwG), specifically in a correspondent banking relationship that involved fiduciary investments and payment processing.
The FMA found that the bank failed to adequately verify the origin of funds in investment accounts and did not apply risk-based continuous monitoring to payment accounts.
This is not the first time that the bank has faced controversy. Its CEO, Michael Grahammer, resigned in April 2016 after the bank was named in the Panama Papers leak.
However, an inquiry undertaken by the Vorarlberg state parliament into the bank's involvement in the international scandal’s transactions found no evidence of misconduct by the bank's leadership.
Irish Bank Introduces Voluntary Gambling Block To Aid Customers
AIB has launched a voluntary gambling block feature to support customers who may be struggling with gambling issues.
This new feature allows customers to request a block on debit and credit card transactions linked to gambling activities, applicable to both personal and business cards.
“We understand that when gambling becomes harmful it can affect not just the person involved, but their families and friends too,” said Geraldine Casey, AIB’s managing director of retail banking.
“It can damage relationships, finances, employment, and mental health. The financial services industry has a role to play in supporting customers as they combat any gambling difficulties they may have, and it’s important AIB does what we can to help them stop the harm.”
Dutch Central Bank Unveils Provisional Model For DORA Information Registers
The Dutch Central Bank (DNB) has released a draft standard model for the information registers required under the EU’s Digital Operational Resilience Act (DORA), which is set to take effect on January 17, 2025.
To comply with Article 28 of DORA, financial entities must maintain an information register for all ICT service agreements with third-party providers.
To ensure readiness for compliance with the incoming regulation, the regulator has published a new provisional format for these registers, which financial institutions will need to report by early 2025.
The DNB intends to align with the reporting standards used by the European supervisory authorities (ESAs) and anticipates adopting an xBRL-CSV format for data submission. However, the final format will be confirmed once the ESAs finalise their standards.
For institutions that are struggling to meet the new reporting requirements in time, the DNB will offer an alternative submission method using a predefined Excel template, which the central bank will convert to the required format. This template is expected to be available later this year.
The DNB emphasised that the final reporting standard will be communicated as soon as it is confirmed.
India’s Retail CBDC Pilot Boasts Of 5m Users
An ongoing pilot of retail central bank digital currency (CBDC) pilot has attracted more than 5m users, India’s central bank has said.
Shaktikanta Das, governor of the Reserve Bank of India (RBI), said in a speech on digital infrastructure and emerging technologies that the pilot also has 16 participating banks.
Launched in late 2022, the retail CBDC pilot has evolved from testing common payments use cases to features such as offline payments and programmability.
Das said that programmability could be a “key enabler” for financial inclusion, pointing to recent tests where programmable CBDC had been disbursed to farmers for the purchase of inputs and raw materials.
“Undoubtedly, CBDC has the potential to underpin the payment systems of the future, both for domestic payments and also cross-border payments,” he said.
