Issue 1
August 2024
Welcome to the MBA's News Digest!
Dear readers,
The Mauritius Bankers Association is pleased to bring to you a curated selection of news and events from the banking & finance industries, across the globe.
We hope that this will be of utmost relevance to you, and your teams.
Subscribe directly from our website to receive the next issue in your inbox!
Best wishes,
The MBA team
The Bank of England’s approach to innovation in money and payments
30 July 2024
‘Over the past few years, the Bank has undertaken a number of initiatives in response to innovations in the payments and settlement landscape, including: our RTGS Renewal Programme and Future Roadmap for RTGS; our work with the FCA on the development of a Digital Securities Sandbox (DSS); our approach to new forms of private digital money such as tokenised deposits and stablecoins; and our exploration of a retail CBDC.’
What does rising compliance costs mean for the UK banking sector?
30 July 2024
‘All CDD processes in 2024 are at least two-thirds automated, with the average level at 80% and the biggest jump seen in internal investigations. This is a far cry from just two years ago when the FCA sent a warning to firms about a systemic over-reliance on labour-intensive manual processes and spreadsheets.’
Check for 'wilful default' in NPA accounts exceeding Rs 25 lakh: RBI to banks
30 July 2024
‘The RBI on Tuesday issued a Master Direction on the Treatment of Wilful Defaulters and Large Defaulters under which banks and NBFCs will have to examine the ‘wilful default’ aspect in all non-performing asset accounts with outstanding amounts of Rs 25 lakh and above…The bar on the additional credit facility to a wilful defaulter or any entity with which a wilful defaulter is associated would be effective for one year after the name of the wilful defaulter has been removed from the List of Wilful Defaulters (LWD) by the lender.’
Joint Advisory on Uptick in Government Official Impersonation Scam Variant Featuring Impersonation of Banks
27 July 2024
FinCEN issues guidance to help bank customers understand new BOI reporting rules
26 July 2024
‘The Financial Crimes Enforcement Network today issued a notice to financial institution customers about the new beneficial ownership information reporting rule requirements, explaining why certain customers must report directly to the agency in addition to giving information to their banks, which are subject to the customer due diligence rule. The notice also explains differences between the reporting rule, which applies to approximately 33 million small businesses, and the CDD rule, which applies to banks and other FIs.’
French Banks – Leaders in Sustainable Finance
26 July 2024
‘Faced with the climate emergency, French banks are taking widespread action to meet the challenges of the environmental transition. They are increasingly financing all their clients’ transition projects by rolling out appropriate banking solutions. They were also among the world leaders in renewable energy financing and green bond arrangement in 2023.’
Shut down: Time to face up to the UK’s problem with fraud
26 July 2024
‘In fact, BaFin, which is the German regulatory body overseeing and enforcing financial institutions’ compliance with AML and KYC regulations, does not currently permit the use of artificial intelligence and biometric-based verification that other regulators (including the UK) do….Up until recently, video identity verification methods were rarely used in countries outside of Germany due to expensive running costs. New versions of video identity verification solutions have changed the game, as they can be customised according to scale and risk appetite and are becoming increasingly popular outside of Germany, including the UK.’
AI in Banking – How Artificial Intelligence is Used in Banks
26 July 2024
‘The introduction of efficient, secure, and customer-friendly alternative solutions has been made possible by the introduction of Artificial Intelligence (AI) in the banking industry. Major areas where AI has been applied in banking comprise customer service, fraud detection, credit scoring, risk management, and process automation, among others including investment management and security as well. Here is how AI in banking works in different aspects.’
Revolut clinches UK banking license, ending three-year wait
25 July 2024
‘British fintech startup Revolut said on Thursday that it had received a banking license with restrictions from the U.K.’s Prudential Regulation Authority, bringing to an end a three-year wait…. A U.K. banking license will allow Revolut to take customer deposits and also issue products like loans and credit cards…. One of the key issues around the delay to receiving a banking license was Revolut’s share structure being inconsistent with the PRA’s rules. British regulators required the company to collapse its six classes of shares into ordinary shares.’
Why API governance is a necessary strategy
23 July 2024
‘API governance controls the technology, the process, and the people involved. It places guardrails for the API’s design (the technology), the business around the API (the process), and the users of the API (the people)… API governance offers controls that help your IT teams standardize API usage, ensure compliance, and support your broader banking strategy. Part of that strategy should boost the landscape value of your APIs, which is the sum of the value of all versions of a single API. Measuring and managing this well means your developers can update APIs without breaking older versions for users.’
Level 15, Newton Tower,
Sir William Newton Street,
Port Louis, Mauritius.
Tel: (230) 213 2390
Fax: (230) 213 0968
2024 © All Rights Reserved. Mauritius Bankers Association Limited