EU and UK authorities target AML compliance in crypto-currency sector
British and EU authorities are planning to regulate the fast-growing crypto-currency sector in order to counter money laundering and other financial crimes. Both the UK Treasury and the European Commission are expected to draft legislation over the coming months that would require crypto-currency exchanges to comply with know-your-customer rules, obliging users to disclose their identity and ensuring firms operating in the industry are overseen by national regulators.
Banks patch major mobile app vulnerability uncovered by academics
Banks have patched a security flaw in their mobile banking apps that could have enabled hackers to gain access to personal information and accounts. The vulnerability, identified by researchers at the University of Birmingham, affected at least 10 UK banks over a period of up to eight months, but it is unclear whether it had been exploited by cyber-criminals before being discovered.
Lithuania’s ambition to become fintech hub boosted by Brexit
Lithuania has seen a threefold increase in foreign financial technology firms seeking licences since 2015, with the pace of applications increasing since Britain’s vote to leave the EU last year. The Lithuanian central bank says it has granted licences to 18 companies this year and a further 16 applications are under review as the country aims to establish itself as a European fintech hub.
UK Treasury offers £2m for rent payment data-sharing solution
The UK Treasury is launching the Rent Recognition Challenge to identify promising financial technology solutions that could enable tenants to record and share their rent payment data, helping to improve their credit scores and their chances of getting a mortgage loan. Successful projects will be provided with £2m to develop a solution that could benefit the around 11 million people in the UK who rent their homes.
Peer2Peer Finance News
Credit Suisse says data analytics and AI are cutting compliance costs
Credit Suisse says it has managed to reverse years of rising compliance costs by implementing advanced data analytics and artificial intelligence to assist its monitoring and reporting processes. Since deploying the technology, the Swiss bank has recorded a 45-fold increase in the number of actionable alerts from predictive monitoring of transactions, while those alerts are being resolved 60% faster despite the larger volume of data.