The Central Bank of Ireland announced that the Virtual Asset Service Providers (VASPs) in Ireland are now required to comply with the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) obligations. This follows as the Fifth Anti-Money Laundering Directive (5AMLD) of EU has been transposed into Irish law by way of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021. VASPs are required to register with the Central Bank for AML/CFT purposes and have three months to apply to the Central Bank for registration. Additionally, the Central Bank of Ireland proposed the guidance on operational resilience of all regulated financial service providers, with the consultation period ending on July 09, 2021.
The proposed guidance on operational resilience is intended to enhance operational resilience and recognize the interconnections and interdependencies, within the financial system, that result from the complex and dynamic environment in which firms operate. The guidance is built on the three pillars of operational resilience—Identify and Prepare, Respond and Adapt, and Recover and Learn. These pillars support a holistic approach to the management of operational resilience and related risks and create a feedback loop that fosters the perpetual embedding of lessons learned into a firm’s preparation for operational disruptions. The guidance:
- Communicates to the boards and senior management of regulated financial service providers, the Central Bank’s expectations with respect to the design and management of operational resilience
- Emphasizes board and senior management responsibilities when considering operational resilience as part of their risk management and investment decisions
- Requires that the boards and senior management take appropriate action to ensure that their operational resilience frameworks are well-designed, are operating effectively, and are sufficiently robust, in an effort to ensure that risks to the firm’s operational continuity do not transmit into the financial markets
In developing these proposals the Central Bank considered the responses to an operational resilience maturity assessment conducted across a sample of financial services firms in the fourth quarter of 2020. These self-assessments were designed to gain an understanding of firms’ views of their level of operational resilience preparedness. The assessment indicated that firms need to build on existing business continuity management approaches to take an end-to-end business services approach to the operational resilience of critical or important business services. The objective of this consultation exercise is to understand the views and experiences of stakeholders in advance of finalizing the guidance to industry on how to prepare for, respond to, and recover and learn from an operational disruption that affects the delivery of critical or important business services.
Comment Due Date: July 09, 2021
Keywords: Europe, Ireland, Banking, Operational Resilience, AML/CFT, Virtual Asset Service Providers, Operational Risk, Business Continuity, Governance, Central Bank of Ireland
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.