Regulatory update March 2022

AML

Recycling cases related to the COVID-19 emergency

UIF

UIF has published no.18 volume of the "Anti-money laundering notebooks" series entitled "Money laundering cases linked to the COVID-19 emergency" which highlights the risks of fraud to the detriment of individuals and public bodies, of possible manipulative conduct in the IPR trade, corruption, especially in the healthcare sector, abuse or improper use of public interventions to support liquidity.

Anti-money laundering statistics: II semester 2021

UIF

In the second half of 2021, the UIF records an increase in suspicious transactions (+ 15.2% compared to 2020), as well as an increase in reports of 23.3% compared to the previous year. The increase is mainly attributable to the reports made by the obliged subjects falling into the categories of IP and IMEL. The incidence of the non-financial sector increased above all due to the contributions of the reporting agents falling into the categories of gaming service providers, notaries and subjects who carry out custody and transport of valuables.

The financial profile of companies infiltrated by organized crime in Italy

UIF

UIF has published No. 17 in the "Anti-Money Laundering Notebooks" series entitled "The financial profile of companies infiltrated by org

anized crime in Italy".

New global framework of fiscal transparency of crypto-assets

OCSE

The OECD, at the request of the G20, has proposed a new global fiscal transparency framework in order to introduce reporting and information exchange obligations in relation to crypto-assets and some proposals for amendments to the Common Reporting Standard (CRS) regarding automatic exchange of information. Specifically, on the basis of this amendment, the tax administrations should transmit fiscally relevant data relating to the persons who carry out certain transactions using the crypto-assets held by them without the intervention of ordinary financial intermediaries.

Obligations to notify the freezing measures applied to designated subjects

BANK OF ITALY (BOI)

Obligations to notify the freezing measures applied to designated subjects ". The European Union, in recent days, has adopted restrictive measures relating to actions that compromise or threaten the territorial integrity, sovereignty and independence of Ukraine, in particular providing for the "freezing" of funds and economic resources against individuals designated. In this regard, the FIU requires operators to communicate to it the freezing measures applied as soon as possible.

Suspicious Transaction Reports. New reporting methods in the remittance sector

UIF

Some intermediaries have implemented platforms through which customers arrange online money remittances. To ensure correct fulfillment of the reporting obligations of suspicious transactions, the FIU has defined new reporting methods for this sector

Transmission of information on Russian and Belarusian deposits to the UIF

BANK OF ITALY (BOI)

Credit institutions are required to submit information on Russian and Belarusian deposits to the UIF

• The list of deposits which, as of February 25, 2022, are of an amount exceeding 100,000 euros held by Russian / Belarusian citizens or natural persons residing in Russia / Belarus, or by legal persons, entities or bodies established in Russia / Belarus. This communication must be sent annually, by 27 May.
• information on deposits which, on the last day of the month, are of an amount exceeding 100,000 euros held by Russian / Belarusian citizens or natural persons residing in Russia / Belarus who have acquired citizenship of a Member State or obtained residence rights in a State member through an investor citizenship program or investor residence program (communication pursuant to letter b) of the Regulations). This communication must be sent on a monthly basis, by the 27th day of the month following the reference month.

Supervision of banks in matters of AML / CFT

EBA

EBA has published the results of its assessment of the approaches of the competent authorities to the supervision of banks in the field of anti-money laundering and countering the financing of terrorism (AML / CFT).

the EBA highlights the difficulties in:

• identify the risks of money laundering and terrorist financing in the banking sector and in individual banks;
• translating the assessments of the risk of money laundering and terrorist financing into risk-based supervisory strategies;
• make effective use of available resources, including by ensuring sufficiently invasive on-site and off-site surveillance;
• take proportionate and sufficiently dissuasive enforcement measures to correct compliance deficiencies in the area of money laundering and terrorist financing.

Decree-law 30 December 2021, n. 228

CABINET

A sentence of 2 to 6 years is established for anyone who unlawfully discloses the identity of the whistleblower or the information reported if suitable for allowing the identification of the whistleblower

 

Banking Services

Implementation of the Guidelines of the European Banking Authority "Guidelines on the delineation and reporting of available financial means of deposit guarantee systems"

BANK OF ITALY (BOI)

The Bank of Italy has declared to the European Banking Authority (EBA) compliance with the EBA Guidelines "Guidelines on the delineation and reporting of available financial means of deposit guarantee systems” (DGS) (EBA / GL / 2021 / 17).

The Guidelines apply to DGSs for the purpose of quantifying the financial envelope useful for achieving the target level. The Guidelines are applicable from 30 March 2022.

ECB publishes its assessment of the 2022 macro-financial scenario

ASSOCIAZIONE BANCARIA ITALIANA (ABI)

ECB has published an updated assessment of the progress made by European banks in disclosing climate and environmental risks, as already outlined in the ECB's guidance of November 2020. Although there have been improvements since the ECB's first assessment at the end of 2020, no bank fully satisfies supervisory expectations

Countercyclical capital buffer (CCyB) ratio

BANK OF ITALY (BOI)

The Bank of Italy has announced that the countercyclical capital buffer (CCyB) ratio for the second quarter of 2022 is set at zero percent.

ESMA's considerations and recommendations on the European Commission's MiFIR review proposal

ESMA

ESMA has published its assessment of the main elements of the European Commission's (EC) MiFIR revision proposal. The document focuses on the establishment of the consolidated tape provider (CTP), but also includes elements such as equity and non-equity transparency, reporting and payment for order flow.

Impact of the war in Ukraine on inside information and financial reporting

CONSOB

CONSOB draws the attention of supervised issuers to the impact of the war in Ukraine with regard to privileged information and financial reporting

Notes on financial stability and supervision no. 28 - Survey on the management of unlikely to pay

BANK OF ITALY (BOI)

GDP growth has been revised down for the short term due to the conflict.

Inflation continued to turn out to be higher than expected due to unexpectedly high energy costs. The baseline scenario outlined for inflation in the new expert projections has therefore undergone a significant upward revision.

Any adjustment to the key ECB interest rates will occur after the end of the net purchases under the APP and will be gradual.

The key ECB interest rate profile will continue to be determined by the Governing Council's forward guidance and its strategic commitment to stabilize inflation at 2% over the medium term.

The Green Paper has been presented to initiate cost-free reforms in the Italian financial markets and to support growth and investments

MEF

The MEF presented the Green Paper to initiate cost-free reforms in the Italian financial markets and to support growth and investments

Presentation of information for the purposes of resolution plans for credit institutions and investment firms

EUROPEAN COMMISSION

The EU Regulation has been published that establishes implementing technical standards regarding the procedures and standard forms and models for the presentation of information for the purposes of the resolution plans for credit institutions and investment firms pursuant to Directive 2014/59 / EU of European Parliament and the Council

RTS project for PD and LGD estimation

EBA

EBA has published the final draft Regulatory Technical Standards (RTS) on probability of default (PDs) and losses on default (LGDs) for the risk of default model for institutions using the new Internal Model Approach (IMA) as part of the Fundamental Review of the Trading Book (FRTB). These final draft RTSs specify the requirements for estimating PD and LGD using an institution's internal methodology or external sources and are part of the findings included in the roadmap for new approaches to market and counterparty credit risk

Recommendations based on the EIOPA 2021 Insurance Stress Test

EIOPA

After analyzing the results of the stress test, EIOPA has defined a series of recommendations.

• Need to reduce the dependence of enterprises on transitional measures.
• To address other vulnerabilities, national competent authorities (NCAs) should assess whether the risks that have caused a significant drop in the SCRs of (re) insurers are adequately managed.
• National competent authorities should also verify that firms allocate sufficient resources to adequately assess risks not covered by the Solvency II reporting framework.
• EIOPA recommends NCAs to investigate why some entities have chosen not to evaluate potential management actions,
• For the insurers who have evaluated them, the Authority suggests a more in-depth analysis of the feasibility and reported impact of the management actions applied.
• National supervisors should also assess how the decision-making processes, the ability to gather relevant information and the models used would enable them to respond quickly to adverse developments.

Consob report on corporate governance of Italian listed companies

CONSOB

The Report provides, with reference to the year 2021, an overview of ownership structures, corporate bodies, shareholders' meetings and transactions with related parties. The report highlights, among other things, a lowering of the average age of the board thanks to a gender diversity policy which has led to a 41% increase in the female figure among the management positions of the companies.

2021 Annual Report on the performance and risks of Eurozone banks

ASSOCIAZIONE BANCARIA ITALIANA (ABI)

With this document, the ECB provides a report on the activities and performance of the banks in the Eurozone with reference to the year 2021.

Risks of crypto-assets for consumers

ESMA

ESA has published a press release entitled "EU financial sector regulators warn consumers about the risks of crypto-assets".

Review of the Guidelines on common procedures and methodologies for the SREP and stress testing

EBA

EBA has modified the Guidelines for the SREP. In particular with regard to the following aspects:

the. analysis of the business model;

• the assessment of internal governance and control mechanisms at the institutional level;
• the assessment of capital risks and the adequacy of the capital to cover these risks;
• the assessment of liquidity and financing risks and the adequacy of liquidity resources to cover these risks.

 

Cards & Payments Services

Brexit: online the audio guide on what changes for payments and investments for the ABI and UICI initiative

ABI

The audio guide developed by ABI - Italian Banking Association and UICI - Italian Union of the Blind and Visually Impaired Onlus APS is online, in collaboration with the UICI National Spoken Book Center, useful for understanding what changes for banking and payment services with United Kingdom exit from the European Union

Provision of 22 February 2022. Supervisory provisions for payment institutions and electronic money institutions

BANK OF ITALY (BOI)

"The provision amending the" Supervisory provisions for payment institutions and electronic money institutions "has been published.

The amendments are aimed at introducing a new Chapter XII bis "Macroprudential measures based on the characteristics of customers or loans". "

Cross-Currency Settlement of Instant Payments in a Cross-Platform Context: A Proof of Concept

BANK OF ITALY (BOI)

The work of the Bank of Italy illustrates the results of a joint experiment involving the Bank of Italy and the Arab Regional Payments Clearing and Settlement Organization (ARPSCO), focused on the settlement of instant cross-currency payments, i.e. payments in which the account of the debtor and the creditor are denominated in distinct currencies between two different technical platforms

Study on new digital payment methods

ASSOCIAZIONE BANCARIA ITALIANA (ABI)

This Report aims to provide the ECB with an account of the current payment habits of Eurozone citizens with particular attention to digital payment methods in order to investigate the possibility of adopting a "digital euro", ie an ad hoc digital currency for the 'Eurosystem, and a “digital wallet” ie a digital wallet.

 

ESG

Application of the Regulation on sustainable financial reporting (SFDR)

ESA

The European Supervisory Authorities (ESAs) recommend that national competent authorities and market participants use the current transitional period from 10 March 2021 to 1 January 2023 to prepare for the application of the next Commission Delegated Regulation containing technical standards for regulation (RTS), also applying the relevant measures of the SFDR and the Taxonomy Regulation according to the relevant application dates indicated in the supervisory declaration

ESG factors in the financial system: the role of supervision

BANK OF ITALY (BOI)

The Bank of Italy has published a document entitled “ESG factors in the financial system: the role of supervision”. The document in question mainly presents the challenges and opportunities of ESG integration, by intermediaries, in investment processes, in credit decisions and in dialogue with customers. Furthermore, the function of supervisory controls aimed at ensuring that intermediaries manage the related risks in compliance with the principles of sound and prudent management is analyzed.

 

ICT & Cybersecurity

Banks: the priorities of investments between innovation and IT security at the ABI Lab 2022 Forum

ABI

The study was conducted on a representative sample of 25 banks.

The study showed that the banking world is accelerating on innovation and security, with investment programs and strategies even more tailored to the customer, in particular:

the. The enhancement of the services offered through cloud computing;

1. The paths of modernization of the infrastructures and the protection of the remote channels used by the clientele.

About half of the groups interviewed plan to increase their investments in technology (48%), while almost a third plan to keep the budget constant compared to 2021 (about 28%).

Cyber resilience for the continuity of service of the financial system

BANK OF ITALY (BOI)

The Bank of Italy has published No. 18 in the "Markets, infrastructures, payment systems" series entitled "Cyber resilience for the continuity of service of the financial system".

Cybersecurity: Phishing campaign aimed at Ukrainian institutions

Computer Security Incident Response Team - Italia (CSIRT)

The CSIRT, a center established at the National Cybersecurity Agency, has detected a massive campaign for the distribution of malicious e-mails, on behalf of state bodies and destined for several similar Ukrainian institutions, containing false instructions relating to the increase in the level of security of your organization

The Italian Association for Information Security has published the 2022 Report

Associazione italiana per la Sicurezza Informatica

The Italian Association for Information Security (CLUSIT), on 25 March 2022, published the document entitled Clusit 2022 Report - March 2022 Edition ".

 

Insurance Services

Periodic communication on complaints received by the companies referred to in art. 9 of ISVAP Regulation no. 24/2008 - New protocol for the exchange of information

ISVAP

IVASS, as part of the process of standardization and optimization of the procedures used for information exchanges with insurance companies, has prepared a new procedure, based on the Infostat platform, which concerns all communications on complaints received by companies, to be sent to the IVASS on a six-monthly basis

Only for the report referring to the first half of 2022, to be sent within 60 days of the deadline, the transmission to the Institute of the data in question is required both via (PEC) and through the new collection system (operational parallel). From the second half of 2022, the report will have to be sent only on the new collection system and the use of the current reporting format and PEC transmission channel will no longer be required.

Consultation on the Regulation scheme on linked products

IVASS

Schema di regolamento IVASS recante disposizioni in materia di contratti di assicurazione di cui all’art. 41, commi 1 e 2 del Decreto Legislativo 7 settembre 2005, n. 209 recante il codice delle assicurazioni private e successive modificazioni e integrazioni

Consultation document no. 4/2022 on the use of external agents for the mystery shopping activity for consumer protection

IVASS

The document contains the draft Regulation on the use of external agents for the purposes of mystery shopping activities for the protection of consumers pursuant to art. 144-bis of Legislative Decree 6 September 2005, n. 206 (Consumer Code ).

With this Regulation scheme it is intended to regulate the procedures for carrying out mystery shopping activities, with particular regard to the requirements and tasks of the external appointees which IVASS can use for the execution of these activities, in implementation of the provisions set out in to art. 144-bis of the Consumer Code.

Future regulatory interventions on life products

IVASS

IVASS has published the document entitled "Preliminary considerations for future regulatory interventions by IVASS in the field of life products".

Submission of supervisory reports from companies to IVASS

IVASS

A letter has been published by IVASS which aims to summarize the main requirements for sending Supervisory reports to IVASS with a reference date of 2022 or to be transmitted in 2022, including the methods of transmission via Infostat and the related deadlines

Consumer protection in the insurance market

IVASS

The Institute for Insurance Supervision (IVASS) published, on March 9, 2022, the Hearing of the Director of IVASS Prof. Riccardo Cesari entitled "Consumer protection in the insurance market".

Modeling of market risk and credit risk in internal models

EIOPA

EIOPA today released the results of its annual study on market and credit risk modeling in internal models. The study was conducted by a joint group of national competent authorities and EIOPA, and provides an updated overview of modeling approaches, including an overview of the alleged causes of dispersion in the model results.

RUI Open Data - IVASS makes available in an editable format the data relating to those registered in the Single Register of Intermediaries

IVASS

IVASS starts the publication of information relating to those registered in the Single Register of Intermediaries (RUI) in an "open" format that can be processed massively.

Settlement scheme on the New Estimate

IVASS

Regulation scheme containing provisions concerning the creation of an online comparison system between insurance companies operating in Italy in the motor liability insurance sector, referred to in articles 132-bis and 136, paragraph 3-bis, of the Legislative Decree of 7 September 2005, 209 - Code of Private Insurance

This is an electronic comparison system of the premiums of the basic contract" offered by insurance companies operating in Italy in the civil liability auto insurance (PREVENTIVASS)

 

Investment Services

Hearing of President Paolo Savona at the Parliamentary Commission of Inquiry on the protection of consumers and users

CONSOB

Hearing of President Paolo Savona at the Parliamentary Commission of Inquiry on the protection of consumers and users. Main topics:

- financial illegality

- risks related to crypto-assets

 

Privacy

The Guarantor has published the information video on cookies

Garante per la Protezione dei Dati Personali (GPDP)

The Privacy Guarantor has published the “Cookies and privacy: news for users. The informative video on the Guarantor's Youtube channel ".

Guidelines on Codes of Conduct for the transfer of data abroad

EUROPEAN DATA PROTECTION BODY (EDPB)

The objective of these guidelines is to specify the application of article 40-3 of the GDPR relating to codes of conduct as adequate guarantees for transfers of personal data to third countries pursuant to article 46-2-e) of the GDPR. . They also aim to provide practical information on the content of such codes of conduct, on their adoption process and on the actors involved, as well as on the requirements to be met and on the guarantees that must be provided by a code of conduct for transfers.

Information page on the Phishing technique

Garante per la Protezione dei Dati Personali (GPDP)

An information page on the Phishing technique has been published by the Guarantor

https://www.gpdp.it/temi/cybersecurity/phishing

 

Other Topics

Supervision of Intermediaries - Establishment of an effective dialogue between the Bank of Italy and external auditors

BANK OF ITALY (BOI)

Bank of Italy, with this Communication informs that it wishes to comply with the EBA Guidelines (EBA / GL / 2016/05), which provides for an effective dialogue to be established between the Supervisory Authorities (hereinafter, also AdVs), to be one side, and the auditors and auditors of such intermediaries (hereinafter, the auditors)

Newsletter on artificial intelligence and machine learning

BASEL COMMITTEE (BCBS)

The newsletter published by the Basel Committee aims to provide more details on its internal discussions regarding artificial intelligence and machine learning.

The document is for information purposes only and does not constitute a new guidance or supervisory expectation.