Global Trustee and Fiduciary Services Bite-Sized Issue 6 2023

AIFMD ESMA Updates Q&As On 26 May 2023 the European Securities and Markets Authority (ESMA) published an update to its Q&As on the application of the AIFMD. The update introduces Section XVII on Marketing, confirming that non-EU AIFMs are not permitted to carry out pre-marketing activities under Article 30a of the AIFMD, although national regulators may permit pre-marketing solely in their respective jurisdictions. Link to Updated Q&As here ANTI-MONEY LAUNDERING BIS Concludes Project Aurora On 31 May 2023 the Bank for International Settlements (BIS) announced that its Innovation Hub’s Nordic Centre had successfully concluded Project Aurora, a proof of concept that explores new ways of combating money laundering with a combination of payments data, privacy-enhancing technologies, artificial intelligence (AI) and enhanced cooperation across institutions and borders. The project was initiated with the aim of addressing the most pressing limitations in the battle against money laundering. The payments systems landscape involves a complex interplay of private and public entities, including commercial banks, payment services providers, fintech companies, central banks and regulatory authorities. This complexity often results in fragmentation, which criminals exploit. Project Aurora started by leveraging a comprehensive synthetic data set that represents real-world domestic and international payments data. To ensure the protection of sensitive information, advanced privacy-enhancing technologies were employed, drawing on machine learning and other advanced analytical tools while the data remains encrypted. Subsequently, algorithms were trained on this synthetic data set to detect various patterns, known as “typologies,” associated with money laundering activities across institutions and countries. The project involved exploring different views on the synthetic data to represent various monitoring scenarios, including siloed, national and cross-border. Additionally, different approaches to collaborative analysis, including centralised, decentralised and hybrid models, were considered at both national and cross-border levels. CONTENTS AIFMD ANTI-MONEY LAUNDERING CMU — RETAIL INVESTMENT PACKAGE CBDC COSTS & CHARGES CRYPTOASSETS ELTIF IFD/IFR LIBOR TRANSITION MIFID II/MIFIR MONEY MARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG WHISTLEBLOWING AUSTRALIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Securities Services Global Trustee and Fiduciary Services | 2023 Issue 6