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The Rhein-Main-Verkehrsbund Incident and SEPA Direct Debit 📖 An example of recent fraud was the Rhein-Main-Verkehrsbund incident, demonstrating how payment options like SEPA Direct Debit are not as safe as is often assumed. While customers purchased their Deutschland Tickets via the "RMVgo" app, there was an abuse of the integrity of IBAN numbers in which fraudsters input forged or stolen IBAN numbers to receive tickets immediately, leading to a drastic increase in payment defaults, a seven figure loss and negative publicity for the transport association. On top of resulting in immense administrative burdens and back-office costs for payees, even with the use of SEPA direct debit, this incident shows the risk of fraud is increased with inadequate security precautions. Consumers, on the other hand, require assurance that they can trust the systems in place to store their valuable financial information. Use of end-customer targeted robust digital solutions can come to the rescue, and reignite this loss of trust and integrity in large-scale organizations, such as RMV. Companies can therefore, in principle, still continue to use the necessary SEPA Direct Debit Scheme, but should invest in robust digital solutions offered by open banking experts to secure themselves, prevent fraud and retain their consumers' trust fully.  Want to find out more about this incident? Have a read of this insightful article: https://lnkd.in/gAWBGymY #Finance #SEPADirectDebit #CaseStudy

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Investing in anti-FinCrime tools and real-time transaction monitoring makes sense even if you are already in dispute with your regulator over gaps in your AML/CFT system. This is evidenced by the news that Germany's financial regulator, BaFin, has lifted growth restrictions on N26 after the digital bank made improvements to its AML/CFT program. BaFin had previously capped the number of new customers the neobank could add each month at 60,000, which, in view of their past growth, was quite a show stopper. What did N26 do to persuade the regulator to lift the restrictions? ☑ The bank says (link to the press release below 👇) it has invested more than €100 million in compliance and its infrastructure over the past two years. ☑ The bank's compliance teams were ready to "effectively combat money laundering and financial crime as it prepared to onboard a higher number of new customers". ☑ N26's new systems will "analyze the fraud potential of individual customers" and include real-time monitoring of transactions for potential fraud. Prior to the growth cap, N26 was onboarding 170,000 new customers per month and expected to reach monthly profitability in the second half of 2024, so the investment in AML/CFT systems directly contributed to the bank's faster growth. #N26 #BaFin #AML #CFT #ComplianceInvestments

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EPI launches Wero wallet in Germany The European Payments Initiative (EPI) has launched its mobile-first wallet and instant account-to-account payments system in Germany, with other counties set to follow in the coming months. German Sparkassen and Volksbanken, Raiffeisenbanken customers can now make instant money transfers from account to account between individuals, via their banking app. Deutsche Bank will launch wero later this year, starting with Postbank. Wero enables mobile payments from one phone to another. Unlike traditional transfers, Wero users do not need the recipient's 22-digit account number (IBAN). Instead, a mobile phone number or email address can be used for real-time money transfers. Next year, Wero will get the ability to pay any small professional from the wallet, and also pay merchants online and upon invoices via QR code. This includes the ability for consumers to manage recurring payments for subscriptions or installments, but also to pay in merchant apps at point of sale without going through the cashier. In-store payments at the cash register will also be added in 2026, along with other capabilities, such as BNPL, merchant loyalty, programme integration and expense sharing. https://lnkd.in/ev3nH8_Z

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Spotlight Powered by - AML Penalties Commerzbank AG is a global German universal bank headquartered at Commerzbank Tower in Frankfurt. The bank was founded in Hamburg in 1870 and is today among the largest credit institutions in Germany. The Federal Financial Supervisory Authority - BaFin has imposed a fine of USD 1,545,076 (EUR 1.45 Mn) on Commerzbank AG for breaching its anti-money laundering (AML) laws. The bank did not update customer data on time and did not provide proper security measures, which resulted in inadequate due diligence in three cases, thus violating its anti-money laundering obligations. To read more, please click: https://zurl.co/VFLw Subscribe to AML Penalties @ https://zurl.co/343z for more insights & updates. Visit our website: https://zurl.co/PWxy #antimoneylaundering #amlpenalties #aml #financialcrimes #moneylaundering #amlcompliancefailure #compliancefailure #bafin #germany #commerzbank #amlviolations #breach #law

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https://lnkd.in/dsDXe4As Hawala: Banking in the Shadow World There are more and more reports in the media about searches by law enforcement authorities in connection with so-called “hawala banking”. BaFin is also focusing more on these transfer systems when it comes to combating unauthorized transactions and preventing money laundering.

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📢 New CURENTIS Whitepaper "AML for Payment Service Providers" now available! 💼💳 Key insights: 🔒 Strengthening AML measures in digital payments 🧐 Effective risk management strategies 🤖 Leveraging AI for transaction monitoring 📊 Real-world case studies from BaFin Don't miss this essential guide for navigating AML challenges! 📚💡 The link to our news with further information on this whitepaper can be found in the comments #AML #PaymentProviders #FinancialCrime #CURENTIS #Whitepaper #FinTech

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It’s finally out 🤩 ! The Payments Association EU is delighted to launch its newest whitepaper on “#KYT best practices and more - How to plan and set up an efficient #AML control framework for payment services.” 🌐 ➡ Written in collaboration with Deloitte and Banking Circle, this report provides a strategic analysis on best practices in the fight against #FinancialCrime and countering financing of terrorism 💸. It explores, among other topics, ❗the definition and importance of Know Your Transaction (KYT), regulatory expectations, current market tools, challenges, and benchmarks for transaction filtering and monitoring, as well as the significance of data management and #AI in enhancing the efficiency of detecting suspicious activities.🕵‍♂️ ➡ A must-read for the payments industry ! 🔎 Download our report here : https://lnkd.in/eV52cdh6 David Dovale Maxime Heckel, CAMS Nicolas Marinier, CAMS Iain Armstrong Christian Møller Karsten David Chriqui Kholoud El Bouazzaoui Kévin Péricart Pascal Aerens LSEG (London Stock Exchange Group) ComplyAdvantage Fraudio #Regulation #Compliance

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Back to basics- Treasury management issues EACT - European Association of Corporate Treasurers Ziv Dekel Report: https://lnkd.in/gcsQgqkd #payments #treasury #banking #treasurymanagement #iso20022 #instantpayments

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Don't miss our Session with Dirk Haubrich of the European Banking Authority (EBA) on July 12th . register here ▶️ https://lnkd.in/d-eg-z4J We will discuss the following key topics: ➡️The EBA's role in the EU payments landscape, following the adoption of the PSD3/PSR package ➡️Product intervention powers by the EBA under the EU Law ➡️A sneak preview of new fraud data ➡️New types of Payments fraud

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💡 We, together with Electronic Money Association and European FinTech Association, as the European digital payments industry, have jointly drafted a letter to the European Commission to express our concerns over the unintended consequences of applying EU Regulation 2023/1542 - on batteries and waste batteries - to points of sale hardware (POS).   We are dedicated to collaborating on sustainable solutions that balance environmental goals and the unique challenges of the digital #payments sector.   Read the full position paper below 👇   #paymentseurope #digitaltransformation #EUregulation

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#news EBA updates validation rules. Earlier this month the European Banking Authority (EBA) issued a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting. This update highlights specific rules that have been deactivated due to incorrectness or IT issues. The EBA has advised Competent Authorities across the EU that data submitted in compliance with these ITSs should not be validated against the deactivated rules. This revision aims to enhance the accuracy and efficiency of supervisory reporting by ensuring that only correct and functional validation rules are applied. #EBA #ITS #standards #EU #xbrl https://lnkd.in/gcawMy_5

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🎙️ Get insider insights from Francis De Roeck, former EPC Payments Scheme Management Board member, in a riveting interview where he discusses European payments' past, present, and future 💡 Discover key highlights: - Evolution of #EPC from its inception to becoming a global authority in #ISO20022 #paymentschemes. - Recent game-changing developments like #SEPA Request-To-Pay and One-Leg Out Instant Credit Transfer. - The unstoppable wave of #digitaltransformation revolutionizing end-to-end #paymentprocesses. 🔮 Peek into the Future: - Real-time #payments are set to dominate, with possibilities like scheduling salary payments for specific times. - Integration of payments seamlessly into everyday activities, from car transactions to fridge reorders! 👉🏼Read the full interview here: https://lnkd.in/dkKRDa-3 🤩 Francis De Roeck will share his knowledge and critical insights on sanction, fraud, and transaction screening during our “Instant Payments - The Last Mile” conference on 10/09/24 in Brussels. Don't miss out on this invaluable opportunity to stay ahead in the payments game! Info & Registration ➡https://lnkd.in/d3sHhDdP #EuropeanPayments #InstantPayments #FutureofPayments #DigitalTransformation #paymentspack2024

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📣 EACB Comments on EBA Draft Technical Standards The EACB welcomes the chance to comment on the European Banking Authority (EBA) standards for calculating the Business Indicator under the Operational Risk framework. We commend the EBA for their clear outline of the BI components and see opportunities to further align several elements with the level 1 text. Additionally, providing the mapping to supervisory reporting in template 0R1 would be beneficial, and we look forward to insights on this. Our recommendations for further improvement include: ➡ Clarifying the asset and dividend components; ➡ Fine-tuning application within institutional protection schemes; ➡ Refining financial component calculations regarding accounting standards, prudential boundary, the group approaches, and the notification process; ➡ Ensuring accurate mapping to FINREP. Read more about how we can enhance the proposed standards for the benefit of all institutions https://lnkd.in/etx4iwQy #EACB #EBA #OperationalRisk #BusinessIndicator #FinancialRegulation #BankingStandards #RiskManagement

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Our members ask for EBA support with the payments and transaction banking topics on the top of their minds - and we deliver. Secretary General Thomas Egner reports on the progress we made on #instantpayments issues, #openfinance guidance, #cybersecurity awareness and more. Also: this progress report is the first entry on our new blog! Read it now and stay tuned for more https://lnkd.in/euVP3qSZ #banking #payments

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Few weeks ago, the European Banking Authority (EBA) has published its final Guidelines on the resubmission of historical data under the supervisory reporting framework. 🎯 The overall objective is to achieve more clarity, consistency and harmonisation when it comes to resubmissions of historical data after errors were detected in banks' comprehensive #COREP or #FINREP templates. Definitely a highly appreciated and long-awaited initiative! 👍 ⚠ However, the way to get there goes hand in hand with a set of new open questions and most likely the need for many banks to implement a standardised resubmission process that is able to reproduce high quality and consistent historical data over a long time horizon without paralysing the whole organisation. Reporting specialists know how painful this can be given the strong interconnectedness within EBA's Data Point Model... 💡 In our latest #regulatoryblog we outlined the key facts of the new EBA Guidelines and our view on potential impacts on banks' reporting practice. What are your thoughts on this? Feel free to contact us! 👏 Michael Schlembach Simon Blöchl Roman Seyfried https://lnkd.in/edJAVQwq

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Industry Insights (CAC23B) - DLT Pilot Regime: Behind the Scenes of BaFin & ESMA In their keynote, Dr. Carola Rathke and Dr. Anika Patz (both YPOG) provide a legal perspective on the DLT pilot regime and an insight into the workings of the BaFin and ESMA. They further delve into the existing challenges and points of discussion prior to the regulatory implementation. https://lnkd.in/ePFX9S8P #CAC23B #DLT

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🔍 Transforming the Financial Sector: The EU Digital Identity Wallet 🔍 The EU Digital Identity Wallet is set to revolutionize the financial sector, and banks are uniquely positioned to provide trusted identity wallets. To succeed, banks need to start preparing. Missed our live webinar? Don't worry! You can now watch the Nets-hosted session where top industry experts Kristian T. Sørensen, Oscar Santolalla and Viky Manaila explore the transformative impact of the EUDI Wallet on European financial institutions and discuss how banks can prepare for these changes. 👉 Watch the webinar recording here: https://lnkd.in/dcCJ537A #EUDIWallet #EUDIframework #DigitalIdentity #eIDSolutions #eIDAS2.0

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