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- US Under Fire For Lack Of Financial Transparency In New Study
- Canada's Largest Bank Sets Aside Additional $2.6bn For US AML Penalties
- Israeli Payment Systems Now Open To Non-Banks, Including Revolut
- Pix Arrives In Europe Following Wipay, PagBrasil Partnership
- Registration Deadline Passes For UK PSPs Ahead Of APP Fraud Reimbursement Rules
- CSSF Launches DORA Readiness Survey For Luxembourg Financial Entities
- Investment Fraud Attempts Up 76 Percent In 2024, Says Bank of Ireland
- Ripple Begins Testing US Dollar Stablecoin On XRP Ledger Mainnet
US Under Fire For Lack Of Financial Transparency In New Study
A new study by researchers at the University of Sussex has found that the US is falling behind other developed economies in terms of financial transparency.
After analysing data from 70 jurisdictions over four decades, the researchers found that the US has fallen behind in curbing financial secrecy, and has now taken over from Switzerland as the “international banking centre of choice for corrupt transactions”.
Meanwhile, the UK has ceased to be a leading destination for financial interests looking to avoid sanctions, as a result of years of reforms, the researchers said.
However, Hong Kong and Dubai have become more important as offshore tax havens and money laundering hubs.
According to the study, this is due to their legal systems and their close connections to emerging markets that generate significant amounts of both licit and illicit funds.
Canada's Largest Bank Sets Aside Additional $2.6bn For US AML Penalties
TD Bank Group has allocated an additional $2.6bn to cover potential penalties related to US regulatory investigations into deficiencies in its anti-money laundering (AML) programme, according to media reports.
This brings the bank’s total provisions for the issue to more than $3bn, as it expects to reach a global resolution by the end of the year, which will include both monetary and non-monetary penalties.
To mitigate the financial impact, TD Bank will sell 40.5m shares of Charles Schwab, reducing its stake in the US brokerage from 12 percent to 10 percent.
The investigations focus on allegations that Chinese drug traffickers laundered at least $650m through TD Bank between 2016 and 2021, with the involvement of a corrupt employee.
"We recognise the seriousness of our US AML program deficiencies and the work required to meet our obligations and responsibilities is of paramount importance," said Bharat Masrani, the bank's CEO.
"Our remediation program is well underway. TD has strengthened its US AML program."
Israeli Payment Systems Now Open To Non-Banks, Including Revolut
The Bank of Israel has opened up its payments systems to non-bank entities for the first time, with Revolut among the first handful of non-banks to gain access.
In addition to Revolut, Grow Payments, Global Remit - Currency Services and Ofek Cooperative Credit Society have been granted authorisation to connect directly with Israel’s payment systems.
Oded Salomi, director of the payment systems and clearing department at the Bank of Israel, said that opening up to non-banks — both foreign and domestic — will benefit the country’s payment ecosystem.
"These entities have the potential to develop advanced and innovative payment solutions, increase competition and optimise business processes and services for the benefit of consumers and businesses," he said.
Pix Arrives In Europe Following Wipay, PagBrasil Partnership
Spanish payments firm Wipay has partnered with PagBrasil in a move that will bring Brazil’s Pix instant payment system to Europe for the first time.
The collaboration will allow Brazilians to pay using Pix while travelling in Spain or Portugal.
The partnership will begin with a pilot scheme at Barcelona Airport, where visitors will be able to make Pix transactions by scanning a merchant QR code.
Subsequently, the two partners plan to export the collaboration to other markets in Europe.
“Our vision is that any Brazilian who comes to visit can enjoy the same convenience and security in payments as they do in their country,” said Jugatx Ansotegui, director of international business development at Wipay.
Registration Deadline Passes For UK PSPs Ahead Of APP Fraud Reimbursement Rules
The deadline has now passed for in-scope payment service providers (PSPs) to register with Pay.UK ahead of new rules on mandatory reimbursement of authorised push payment (APP) fraud.
In July, the Payment Systems Regulator (PSR) confirmed the deadline of August 20 for firms to register themselves under the Faster Payments System (FPS) Reimbursement Directory.
Under the new rules that go live on October 7, in-scope PSPs will be required to reimburse APP fraud victims within five working days, and receiving PSPs will be required to share the cost of the fraud loss with the sending PSP.
“The key benefit of the policy is improved experience and protection for end users, and the increased focus on the implementation of best-in-class fraud detection and prevention solutions across the industry,” said Pay.UK.
CSSF Launches DORA Readiness Survey For Luxembourg Financial Entities
The Commission de Surveillance du Secteur Financier (CSSF), Luxembourg's financial regulator, has initiated a DORA Readiness Survey aimed at assessing the preparedness of financial entities for the Digital Operational Resilience Act (DORA).
This survey comes as the implementation deadline for DORA, set for January 17, 2025, approaches.
The survey, which consists of ten closed questions, seeks to gauge the readiness levels of financial entities and identify any challenges they are facing.
Additionally, the CSSF hopes to raise awareness among entities that may be lagging in their preparations.
Entities licensed in Luxembourg, including those under direct European Central Bank (ECB) supervision, will receive invitations to participate via email.
Although participation is not mandatory, the CSSF strongly encourages it, with responses open until September 15.
Investment Fraud Attempts Up 76 Percent In 2024, Says Bank of Ireland
A new report from the Bank of Ireland has found that attempts at investment fraud targeting its customers rose 76 percent in H1 2024 compared with the same period last year.
The bank said the majority of cases begin on social media and eventually lead to phone calls and messages between the scammer and the target.
“The growth in investment fraud attempts is the most concerning trend we are seeing at the moment,” said Nicola Sadlier, head of fraud at Bank of Ireland. “The level of personalised targeting of consumers continues to grow year on year.”
The bank also found that 94 percent of customers surveyed have been targeted by a fraudster within the past 12 months.
The practice of “re-targeting” customers — whereby scammers contact someone who has already been scammed with fraudulent offers to recover their losses — is also on the rise.
Ripple Begins Testing US Dollar Stablecoin On XRP Ledger Mainnet
Ripple has announced that it has begun testing its Ripple USD stablecoin on the XRP Ledger (XRPL) and Ethereum Mainnet.
The company said that Ripple USD is currently in its beta phase and is being “rigorously tested” by its enterprise partners.
“This phase is crucial for ensuring that the stablecoin meets the highest standards of security, efficiency and reliability before it becomes widely available after receipt of regulatory approval,” it said.
“Consequently, Ripple USD is not available for purchase or trading at this time.”
Ripple, which revealed its stablecoin plans in April this year, warned investors to be aware of crypto scams that purport to offer early access to Ripple USD.
