Greg Kilminster
Head of Product - Content
Singapore publishes Environmental Crimes Money Laundering National Risk Assessment
The Monetary Authority of Singapore (MAS) in conjunction with the Ministry of Finance and the Ministry of Home Affairs, has published an Environmental Crimes Money Laundering (ML) National Risk Assessment (NRA) which identifies the key threats and vulnerabilities in environmental crimes ML to which Singapore is exposed, and outlines mitigation measures which government agencies, financial institutions and Designated Non-Financial Businesses and Professionals can develop to address the risks.
The NRA reports that, In July 2021, the Financial Action Task Force (FATF) noted that environmental crimes generate around US$110 billion to US$281 billion in criminal gains every year. The NRA’s key findings are as follows:
- Singapore is a transit country for environmental crimes ML.
- Singapore is particularly exposed to Env Crimes ML threats from Illegal Wildlife Trade, Illegal Logging and Waste Trafficking
- Banks and cross-border payment service providers (or Remittance Agents) are at greatest risk of being exploited for environmental crimes s ML
The report concludes with Singapore's commitment to continually assess and review its risk exposure and legislative framework to combat environmental crimes-related ML effectively, protecting its reputation as a trusted financial and trading hub.
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ESMA reminds firms of rules around pre-close calls
The European Securities and Markets Authority (ESMA) has issued a statement to remind issuers of the legislative framework applicable to “pre-close calls” and good practices to follow during these calls.
Some context
“Pre-close calls” are communication sessions between an issuer and an analyst or group of analysts who provide research, forecasts, and recommendations regarding the issuer’s financial instruments for their clients. These calls typically occur just before the periods preceding an interim or year-end financial report, during which issuers refrain from providing additional information or updates.
“Pre-close calls” can influence market expectations and instrument prices. ESMA and national competent authorities (NCAs) have observed instances of high volatility in EU share prices, some of which occurred shortly after “pre-close calls” between issuers and selected analysts. The media have linked these calls to subsequent volatility, raising suspicions about possible unlawful disclosure of inside information.
Key takeaways
To address concerns related to pre-close calls, ESMA recommends several good practices, including:
- Conducting an assessment of the information intended for disclosure prior to a “pre-close call” to ensure it does not constitute inside information according to Article 17 of the Market Abuse Regulation (MAR1).
- Informing the public about upcoming “pre-close calls” on the issuer’s website, highlighting relevant details such as date, place, topics, and participants.
- Making the material and documents used during the calls simultaneously available on the issuer’s website.
ESMA also notes that NCAs are responsible for analysing specific episodes and identifying potential MAR breaches.
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European Commission launches AI office to lead in trustworthy artificial intelligence
The European Commission has confirmed the establishment of the AI Office, a dedicated entity within the Commission designed to oversee the development and implementation of Artificial Intelligence (AI) technologies across the EU. The move aims to promote innovation while ensuring that AI deployment is safe, ethical, and beneficial to society and the economy.
The AI Office is structured into several specialised units, each with a distinct focus:
- Regulation and compliance unit: Ensures uniform application and enforcement of the AI Act across EU member states, investigates potential infringements, and administers sanctions.
- AI safety unit: Identifies systemic risks associated with advanced general-purpose AI models and devises mitigation strategies.
- Excellence in AI and robotics unit: Supports and funds research, fostering an ecosystem of excellence through initiatives like GenAI4EU.
- AI for societal good unit: Engages in projects aimed at using AI for beneficial purposes, such as improving weather modelling and cancer diagnosis.
- AI innovation and policy coordination unit: Monitors trends, stimulates AI adoption through innovation hubs, and supports regulatory sandboxes and real-world testing environments.
The AI Office will be managed by a Head of the AI Office, supported by a Lead Scientific Adviser to ensure scientific integrity, and an Adviser for International Affairs to maintain global cooperation on trustworthy AI.
Operational scope and responsibilities
The team of more than 140 experts, including technologists, lawyers, economists, and policy specialists, is tasked with:
- Enforcing the AI Act and ensuring compliance across the EU.
- Collaborating with AI developers, scientists, and stakeholders to develop best practices and state-of-the-art codes of practice.
- Evaluating and testing general-purpose AI models and administering necessary sanctions.
- Facilitating the integration of AI models into practical applications, thereby stimulating investment and innovation.
- The AI Office will also play a pivotal role in fostering an innovative AI ecosystem within the EU by:
- Advising on best practices and providing access to AI sandboxes and real-world testing environments.
- Supporting AI and robotics research and development.
- Implementing initiatives to ensure that EU-made AI models are integrated into diverse applications.
Next steps
The organisational changes will take effect on 16 June, with the first AI Board meeting scheduled for the end of June. The AI Office is preparing guidelines on AI system definitions and prohibitions, expected six months after the AI Act comes into force, with codes of practice for general-purpose AI models due nine months after the Act's implementation.
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PSR revises specific directions for card-acquiring services
The Payment Systems Regulator (PSR) has published policy statement (PS) 24/1 reflecting the outcome of its recent consultation paper (CP) 24/1 on proposals to revise Specific Directions 14,15 and 16 associated with card-acquiring services.
Some context
Specific Directions 14, 15 and 16 were issued in 2022 to the 14 most significant providers of card-acquiring services to enhance services and choices for businesses receiving card payments.
In 2023, the PSR issued CP24/1 to gather feedback on proposed revisions to ensure that the appropriate firms are covered.
Key takeaways
After considering the feedback received, the PSR is updating the list of directed firms and introducing a new streamlined method of making changes going forward.
The PSR also consulted on whether to add Checkout Ltd to the list, but based on feedback received, has decided not to direct Checkout Ltd at this time. The
PSR will keep the list of directed firms under review.
Next steps
The PSR will continue to monitor and review the list of directed firms.
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