Issue 33
July 2025
Welcome to the MBA's News Digest!
Dear readers,
Crypto FOMO? German banking giant Sparkassen-Finanzgruppe sets sights on crypto trading services; aims to offer same to 50 million+ customers by mid-2026.
Stronger action required to safeguard the integrity of the international financial system, pleads the FATF in its sixth targeted update on the global implementation of AML/CFT.
India’s Central Bank revises instructions for unclaimed and inoperative deposit accounts, citing KYC concerns.
Best wishes,
The MBA team
“Innovation in banking is incremental, not radical”
26 June 2025
‘A large number of digital finance solutions that make our day-to-day lives easier have gradually established themselves in recent years: paying with TWINT, scanning invoices with a QR code or paying them directly via eBill, using virtual credit and debit cards with mobile wallets and even investing in digital Pillar 3a pensions are things that many clients already take for granted. However, that’s only one side of the coin. As a rule, innovation in banking is incremental, not radical. A lot of progress happens in the background, where clients don’t see it. The aim is often to optimise existing processes or improve system efficiency rather than create entirely new business models.’
SME banking study: Credit process to be simplified for SMEs
24 June 2025
‘Thousands of Small and Medium-sized Enterprises (SMEs) in Switzerland are reluctant to apply for credit despite their financing needs. The main reasons cited are the credit process, which is perceived as lengthy and cumbersome, and high interest costs. The “SME Banking” study published today by the Institute for Financial Services (IFZ) addresses the existing hurdles in the credit process and outlines solutions. To encourage as many SMEs with financing needs as possible to apply for credit, the study recommends that banks improve customer interaction by enhancing the customer journey and optimizing the entire credit process. The benefits include faster processing times and lower costs. As Swiss Banking explains in a guest article on the study, this strengthens the innovative power and competitiveness of SMEs and thus also the Swiss economy.’
Payment method fraud: French people are more vigilant, but the risk remains high
26 June 2025
‘According to the latest figures published by the OSMP, manipulation fraud (fraud on card payments with strong authentication and fraudulent online banking transfers) fell slightly in H1 2024 (-2% in amount compared to H1 2023 to €179 million). These are encouraging figures, but vigilance remains essential to contend with scams by fake advisers or financial sites and new threats related to generative artificial intelligence. To better understand these changes, the FBF published the results of its survey conducted with Harris Interactive on the French public’s perceptions and behaviour in terms of security. Although exposure remains high, the proportion of French people reporting that they have been victims of a scam attempt decreased for the first time. This edition highlights increasingly cautious behaviour in the face of fraud, particularly among seniors: 54% of French people say they have already been the victim of a bank data scam attempt (-3 pts vs. 2024) and 1 in 10 say they have been the victim of an actual scam. See the other figures in the survey at the end of the press release.’
Wero: a new step for sovereign payments in Europe
17 June 2025
‘The European Payments Initiative (EPI) has announced the onboarding of five Luxembourg banks – Spuerkeess, BGL BNP Paribas, Banque Internationale à Luxembourg (BIL), POST Luxembourg and Banque Raiffeisen – as members of its growing network. Together, they are preparing to launch Wero, a European digital wallet offering instant account-to-account (A2A) payments across borders. Set to go live in Luxembourg by June 2026, Wero is designed to simplify everyday transactions for individuals and merchants alike. From splitting bills with friends to paying in-store, online or by invoice, all within a single app.’
FATF urges stronger global action to address Illicit Finance Risks in Virtual Assets
26 June 2025
‘With virtual assets inherently borderless, regulatory failures in one jurisdiction can have global consequences. The report highlights emerging risks arising from the criminal exploitation of virtual assets including: The use of stablecoins by various illicit actors, including Democratic People’s Republic of Korea (DPRK) actors, terrorist financiers, and drug traffickers, has continued to increase since the 2024 Targeted Update, and most on-chain illicit activity now involves stablecoins (p. 20). Mass adoption of stablecoins or VAs more broadly could amplify illicit finance risks, particularly with uneven implementation of the FATF Standards for VAs/VASPs…’
FinCEN Permits Banks to Use Alternative Collection Method for Obtaining TIN Information
27 June 2025
‘FinCEN issued this order in coordination with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively, “the Agencies”). The order permits a bank subject to the jurisdiction of the Agencies to use an alternative collection method to obtain TIN information from a third-party rather than from the customer, provided that the bank otherwise complies with the Customer Identification Program (CIP) Rule. The CIP Rule requires written procedures that: (1) enable the bank to obtain TIN information prior to opening an account; (2) are based on the bank’s assessment of the relevant risks; and (3) are risk-based for the purpose of verifying the identity of each customer to the extent reasonable and practicable, enabling the bank to form a reasonable belief that it knows the true identity of each customer. The use of this exemption by banks is optional, and they are not required to use an alternative collection method for TIN information.’
India revises instructions for unclaimed and inoperative deposit accounts
18 June 2025
‘India’s central bank has revised instructions for bank deposit accounts that have not been operated or remained unclaimed for ten years or more. The credit balance of such accounts is required to be transferred by banks to the DEA fund maintained by the Reserve Bank of India (RBI), the central bank said in an online statement on 12 June 2025. Deposit accounts covered at those “which have not been operated upon for ten years or more”, or “any amount remaining unclaimed for ten years or more.” The RBI also updated paragraph 6.1 of the instructions, directing banks to make available a means to update the know your customer (KYC) for the activation of inoperative accounts and unclaimed deposits at all their branches, including non-home branches.’
Major German bank to offer crypto trading by 2026 amid bank ‘FOMO’
1 July 2025
‘Sparkassen executives previously ruled out any crypto-related services, citing volatility and risk concerns; the banking giant also blocked crypto purchases for all customers back in 2015. While there has been a shift in direction, the DSGV reportedly said its “position remains clear, cryptocurrencies are highly speculative investments,” adding that there will be no advertising for the new service, and customers will be informed about risks, including the “potential for total loss.” ’
Ethiopia Opens Banking Sector to Foreign Investors and Institutions
30 June 2025
‘Foreign investors will be allowed to set up subsidiaries, branches, or representative offices, in line with the “Banking Business Proclamation” passed by Parliament in December 2024. The law also permits foreign investors to acquire shares in local banks. However, safeguards have been introduced to protect national interests. Foreign ownership in local banks is limited to a maximum of 49%, with at least 51% of shares required to remain under Ethiopian control. The NBE expects that opening the banking sector to foreign players will “attract more capital, improve service quality, and enhance the efficiency and inclusiveness of the sector.” Ethiopia’s banking industry currently includes 32 institutions, dominated by the state-owned Commercial Bank of Ethiopia (CBE), which holds about 22% market share.’
CBI To Question Bank Staff In Rs 8.5 Lakh Mule Account Cyber Fraud Case
1 July 2025
‘The CBI will start questioning bank officials under scanner for allegedly facilitating the operations of 8.5 lakh mule accounts in a “pan India conspiracy” with cyber crime syndicates to launder crime proceeds, agency officials said. One crucial laxity detected by the CBI during its two-month-long inquiry was the systemic failure to generate Suspicious Transaction Reports (STR) despite countless mule accounts exhibiting transactions that rapidly exceeded prescribed monetary thresholds,” a clear indicator of suspicious activity, they said.’
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