Global Trustee and Fiduciary Services Bite-Sized Issue 8 2024

19 QUICK LINKS AIFMD CBDC CRYPTOASSETS CSDR FINTECH FSB FUND LIQUIDITY MAR MIFID II/MIFIR OPERATIONAL RESILIENCE REMUNERATION SUSTAINABLE FINANCE/ ESG UCITS ASIA PACIFIC EUROPE IRELAND NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2024 However, the review also highlighted the need for targeted improvements in process consistency across firms of different sizes which are operating in different financial sectors. The recommendations focus on three areas: clarity of supervisory expectations, governance of the process, and the fairness, efficiency and transparency of the process. The review identified a number of areas in which the operation of the F&P regime could be improved including the creation of a new unit to bring together all F&P work. The Central Bank stated that the recommendations of the review will be implemented over the coming months and should be in place by the end of the year. Link to the Review here NORTH AMERICA Federal Bank Regulatory Agencies Seek Comment on Interagency Effort to Reduce Regulatory Burden On 25 July 2024, the federal bank regulatory agencies announced their second notice requesting comment to reduce regulatory burden. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 requires the Federal Financial Institutions Examination Council and federal bank regulatory agencies to review their regulations every 10 years to identify outdated or otherwise unnecessary regulatory requirements for their supervised institutions. To facilitate this review, the agencies divided their regulations into 12 categories and are now soliciting comments on their regulations in three categories: Consumer Protection; Directors, Officers, and Employees; and Money Laundering. The public has 90 days from publication in the Federal Register to comment on the relevant regulations. Over the next two years, the agencies will request comment on regulations in the remaining categories, asking the public to identify the regulations they believe are outdated, unnecessary, or unduly burdensome. The agencies will hold a series of outreach meetings where interested parties may comment on applicable regulatory requirements directly to the agencies. Information about the outreach meetings will be publicised as details are finalised. Link to the Economic Growth and Regulatory Paperwork Reduction Act Website here Agencies Request Comment on Anti-Money Laundering/Countering the Financing of Terrorism Proposed Rule On 19 July 2024, four federal financial institution regulatory agencies (Federal Deposit Insurance Corporation, Federal Reserve Board, National Credit Union Administration, and Office of the Comptroller of the Currency) requested comment on a proposal to update their requirements for supervised institutions to establish, implement, and maintain effective, risk-based, and reasonably designed anti-money laundering and countering the financing of terrorism (AML/CFT) programs. The amendments are intended to align with changes concurrently proposed by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), most of which result from the Anti-Money Laundering Act of 2020 (AML Act). The proposed amendments would require supervised institutions to identify, evaluate, and document the regulated institution’s money laundering, terrorist financing, and other illicit finance activity risks, as well as consider, as appropriate, FinCEN’s published national AML/CFT priorities. Additionally, and consistent with the AML Act, the proposal would mandate that the duty to establish, maintain, and enforce the AML/CFT program remain the responsibility of, and be performed by, persons in the United States who are accessible to, and subject to the oversight and supervision by, the relevant agency. The proposal also supports institutions’ consideration of innovative approaches to meet compliance obligations. Comments on the proposal are due 60 days after the date of publication in the Federal Register. Link to Federal Register Notice here Link to Interagency Statement here Link to Statement by Governor Michelle W. Bowman here