Nos derniers articles

This paper discusses the efficiency, effectiveness, and costs of #denmark's #antimoneylaundering (#aml) #compliance standards. Although the country has caught up with international standards, the current global AML compliance system is ineffective in deterring #moneylaundering by professional actors. The system imposes significant costs on #banks and society, while spending too much time on minor infractions. To improve the system, the author argues for a #risk-based approach that automates large portions of the compliance process and allows compliance staff to focus on investigations.

As more #laws and #legal norms are introduced to enforce #esg standards, directors are required to ensure that their corporation complies with these standards. This encroaches on the #fiduciary relationship between directors and the corporation and weakens the Business Judgment Rule (#bjr) as directors must operate within the law and implement #compliance systems to keep up with the growing #esggoals.

"... model uncertainty is a vital component of the current challenges in risk measurement, and therefore the regulator should design risk measures encouraging well-understood prudent decisions over (less understood) risky ones. From this perspective robust regulation should be a desirable goal. To achieve such an objective, simple – but not simpler – rules are needed."

"This architecture will improve board of directors’ decision-making, strengthen compliance and risk management protocols, empower gatekeepers such as lawyers and accountants to better monitor, and enhance the social contract between business and society. "

"... compares two industries where legislative requirements differ, but it finds the same pattern: the ideals of enterprise risk management are being not implemented in practice."

"This implementation in France provides a new framework for non-financial information and marks a major turning point towards greater potential responsibilities for members of the management bodies of the large corporations in question, in particular with the description of diversity policy: non-financial reporting is reviewed via an overall analysis guided by the materiality principle and genuine sustainable compliance based on a prior and relevant risk assessment."

"... I consider the effectiveness of the Compliance role within the organisational structure and how far the demarcation of the function and its assigned duties are achieving an enterprise-wide culture of good governance and compliance. I posit that, although the delineation of clear responsibilities is important, the benefits of ostensible independence brought about by the departmentalisation of compliance may not be the definite answer to the complex, if not esoteric, challenges faced by organisations in matters of compliance."

" Predictive machine learning algorithms used in banking environments, especially in risk and control functions, are generally subject to regulatory and technical constraints limiting their complexity. Knowledge distillation gives the opportunity to improve the performances of simple models without burdening their application, using the results of other - generally more complex and better-performing - models."

"... there is a risk that the EU’s Network and Information Systems Directive (‘NIS Directive’) might lead to only incremental improvements in the cybersecurity of Europe’s critical infrastructure and digital services, while generating substantial compliance activity, aimed at placating regulators and reassuring the general public."

"... requirement releases are more effective for banks with a low capital headroom over requirements and do not trigger additional risk-taking. These findings provide key insights on how to design effective bank capital requirement releases in crisis time."