Supervisory Statement on Governance and Risk Appetite

21. November 2016 in Kategorie AufsichtsEnglisch

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Jan Peter Buchholz
Partner CASIS Wirtschaftsprüfung
Mathias Golks
Bankspezialist CASIS Wirtschaftsprüfung


Die Übersetzung finden Sie hier


On 21 June 2016, the European Central Bank (ECB) published its statement and expectations on the thematic review on the board governance and their risk appetite frameworks (RAF). An in-depth assessment of the institutions’ management bodies and their RAFs was conducted in 2015 across all significant institutions (SIs) in the euro area through a thematic review. Exercising Single Supervisory Mechanism (SSM), ECB performed deep and granular assessments of banks’ management bodies in charge of supervisory and management functions.

The report conveys some lessons from the thematic review, describes good practices observed and sets out supervisory expectations regarding a bank’s board and risk appetite framework. The report was not intended to give a new exhaustive guidance on effective governance and risk appetite framework. There are no immediate effects on the institutions. From a national, German point of view, it appears challenging to derive immediate need for action from the published general principles – at least for those banks that comply with regulations of the German Banking Act (KWG) on particular organisational duties for risk management (including MaRisk), management and supervisory board. „Management bodies“ as delineated in the review refer, when transferred to the national two tier system, to the supervisory board (Art. 4 Abs. 10 CRR, § 25d KWG). Weiter lesen.. »

ECB’s new features in monetary and financial statistics

27. Juni 2016 in Kategorie AufsichtsEnglisch

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Miro Nikolov
MBA, Co-founder, Envenure Ltd.


The ECB has recently distributed significantly improved fiscal and financial statistics, with the strategic aim to strengthen the set of various monetary and financial statistics types. These statistics are collected with the sole intent of acquiring a comprehensive and meticulous description of euro area financial sectors so that the ECB’s monetary policy and macro-prudential functions are supported.

The upgrades were activated by two principal elements in overall financial markets. In the first place, as financial innovation has changed the financial scenery in Europe, policy-makers have made extra requests for data gathering processes.

Second, new prerequisites have emerged from the implementation of the European System of Accounts 2010 (ESA 2010), a refit of the statistical standards, which constitute the methodological structure for the monetary and non-financial accounts in Europe. Weiter lesen.. »

Can Risk Management and Compliance be digitalized?

15. Juni 2016 in Kategorie AufsichtsEnglisch

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Karl Viertel
CEO, Alyne


Digitalization is a seemingly new buzz word on the agenda in many organizations as well as in pitch decks of savvy consultants. It describes the introduction of digital technology to an organizational process to make existing activities more effective or deliver a new service to the organization. Avoiding manual steps, human intervention and any unnecessary interfaces are commonly a focus point. Over the past decades, the term has been used in various contexts, from actually transforming physical processes like type setting to digital printing or using computer aided design instead of pencil and paper. However, in today’s practice, businesses usually mean leveraging X-as-a-Service offerings to apply flexible and scalable technology to optimize a specific business outcome when talking about digitalization.

What does digitalization mean for Risk Management and Compliance?

You could argue that Risk Management and Compliance are already largely digital domains and digitalized. However, it is worth taking a second look when you consider the following characteristics you may encounter in these functions in companies around the world:

  • Lots of manual interaction
    • Many Risk Management and Compliance processes in organizations involve multiple separate spreadsheets, feedback and additions being sent back and forth via emails, spreadsheet outcomes pasted into slide decks and probably still some printouts with a busy executive’s hand-written comments.
  • Labor intensive processes
    • Compliance reporting and Risk Management requirements have developed so rapidly that especially highly regulated companies as banks have solved an immediate need by hiring more people. Compliance and Risk Management departments have grown to enormous dimensions.
  • Generic and outdated toolsets
    • While digital tools are used in Risk Management and Compliance, these tools are often generic tools, such as spreadsheets or outdated solutions, like many GRC tools currently on the market. Processes are not necessarily streamlined and the quality of the output is highly dependent on the structuring and content of the user, as little guidance or content is provided.

Weiter lesen.. »

Application of customer due diligence measures to customers who are asylum seekers from higher-risk third countries or territories

3. Juni 2016 in Kategorie AufsichtsEnglisch

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Dr. Antje Buchholz
Projektleiterin CASIS Wirtschaftsprüfung


The scale of the current migrant movement creates compliance challenges for credit institutions when supplying financial inclusion of asylum seekers. This is due to the fact that institutions are under an ongoing legal obligation to comply with Anti-Money Laundering/Terrorist Financing (AML/CFT) and financial sanctions legislation. Asylum seekers from higher-risk third countries or territories first applying for access to financial products and services may cause challenges for institutions where the identity of these customers cannot be verified on the basis of „traditional“ forms of identification.

On April 12 2016, the European Banking Authority (EBA) published its Opinion on the application of Customer Due Diligence measures to customers who are asylum seekers from higher-risk third countries or territories. In this Opinion, the EBA sets out how credit institutions can strike the right balance between providing financial inclusion to asylum seekers from higher-risk third countries and territories on the one hand, and complying with AML/ CFT requirements on the other hand.

EBA points out that providing asylum seekers with access to at least basic financial products and services is an important element in ML/CFT-prevention, since lack of access can drive financial transactions underground, substantially complicating the detection of suspicious transactions. EBA believes that European legal framework regarding AML/CFT does not conflict with demands for the financial inclusion of asylum seekers and effective ML/TF risk management. However, achieving this will require weaker forms of customer identification and at the same time applicable and effective AML/ CFT control.

The BaFin already responded to the migrant movement prior to publication of the EBA Opinion. In her announcement as of August 21 2015, the BaFin allowed credit institutions to apply simplified customer due diligence procedures. EBA suggests that institutions’ ML/TF risk mitigation measures should include setting up stricter monitoring controls and offering a more limited range of services. Weiter lesen.. »

FCH-Neuerscheinung: AufsichtsEnglisch, 2. Auflage

12. April 2016 in Kategorie AufsichtsEnglisch, Buchneuerscheinung, FCH News

Cover_AufsichtsEnglisch2Auflage_978-3-95725-047-6

Bill Child
AufsichtsEnglisch, 2. Auflage
Praxiswörterbuch mit Facherläuterungen

Stand: 01.03.2016
Erscheinungstermin: 15.04.2016
Umfang: ca. 291 Seiten
Preis: € 119,-
ISBN: 978-3-95725-047-6
Hier erhalten Sie weitere Infos zum Buch und die Möglichkeit zur Bestellung im Online-Shop

In einem immer komplexer regulierten Branchenumfeld müssen sich die Institute weiterhin zunehmend mit Schreiben der Aufsicht auf Englisch sowie englischsprachig veröffentlichten Standards, Leitlinien, Konsultationspapieren oder anderen Dokumenten beispielsweise von der Europäischen Bankenaufsichtsbehörde (EBA), der Europäischen Zentralbank-Banken­aufsicht (EZB-Bankenaufsicht) oder dem Basler Ausschuss für Bankenaufsicht (BCBS) direkt auseinandersetzen. Weiter lesen.. »