The EBA launched a consultation on four draft Regulatory Technical Standards for the EU's new AML/CFT regime, running until June 6, 2025. The RTSs cover AMLA's supervision criteria, ML/TF risk assessment methodology, customer due diligence requirements, and sanctions/administrative measures. These standards aim to harmonize and strengthen AML/CFT compliance across the EU.
This study finds that corporate digital transformation (CDT) reduces revenue volatility while enhancing financial stability, governance, and ESG performance. Smaller firms benefit more, but excessive digital investments increase operating risks. Stronger infrastructure, IP protection, and digital taxation improve CDT’s effectiveness, ensuring risk reduction without compromising performance or growth potential.
This study analyzes financial risk management in digital-only banking using quantitative methods. Phishing (35%) and ransomware (20%) cause major financial losses. Basel III compliance reduces fraud risks, while AI-driven fraud monitoring has inefficiencies. Regulatory enforcement improves fraud prevention by 1.90%, highlighting the need for stronger cybersecurity and regulatory measures.
This work presents a framework for constructing elicitable risk measures with properties like monotonicity, translation invariance, and convexity using multiplicative scoring functions. It defines necessary conditions for these properties and provides a method for developing new elicitable functionals, with applications in finance, statistics, and machine learning.
The European Commission’s new proposals aim to simplify EU rules, reduce administrative burdens by 25% (35% for SMEs), and boost competitiveness. Targeting sustainable finance, due diligence, and carbon mechanisms, they could save €6.3 billion annually and unlock €50 billion in investments, fostering growth while supporting climate goals.
La Banque de France et l’ACPR soutiennent la relance du marché européen de la titrisation pour financer les transitions écologique et digitale. Elles appellent à une simplification réglementaire tout en maintenant la sécurité. Un cadre optimisé libérerait des financements bancaires et élargirait les opportunités d’investissement, favorisant une croissance durable.
« Le règlement européen sur la résilience opérationnelle numérique du secteur financier (DORA) établit un cadre commun pour la gestion des risques liés aux technologies de l'information et de la communication (TIC). Il définit des règles en matière de cyber-sécurité et de gestion des risques informatiques qui s’appliquent à un grand nombre d’entités financières. »
This paper examines the Solvency II correlation matrix used in Solvency Capital Requirement (SCR) calculations. It warns against misinterpreting null correlations as independence and highlights the matrix's limitations without a well-defined probabilistic model. It also critiques the flawed practice of arbitrarily increasing correlations to inflate capital requirements conservatively.
This paper analyzes cyber risk severity and tail risk using three databases. Malicious cyber incidents show increased severity since 2018, while negligent incidents decline. Cyber loss distributions are extremely heavy-tailed. Findings highlight the need for dynamic, category-specific risk management and insurance pricing.
This paper tackles corporate fraud detection using real-world Chinese stock market data. It highlights challenges like information overload and hidden fraud. The proposed KeGCNR model enhances detection with knowledge graph embeddings and robust training. Experiments show superior performance. Future research should address class imbalance and IND noise. Public datasets are provided.