Financial services

Financial Services Regulation and Compliance – General Cross-Sector October 2022


CBI Keynote on Managing Climate Risk in the Financial System at Climate Finance Week 2022

On October 18, Sharon Donnery, Deputy Governor, spoke at Climate Finance Week 2022. In her remarks, reference was made to the IMF and World Bank Annual Meetings in Washington held earlier. in October. The Deputy Governor emphasized that climate change was high on the agenda and that a sense of urgency was conveyed by all who debated the subject.

The Deputy Governor referred to the prioritization of climate risks at the CBI. The Deputy Governor also discussed CBI’s consultation paper on guidance for the insurance industry and expectations for governance structures, business strategy and risk management to manage climate change risks. The Deputy Governor notes that “the questions raised during our consultation may also apply to other sectors“.

CBI Launches Discussion Paper on Consumer Code Review

On October 3, 2022, the CBI launched a discussion paper on the review of the Consumer Protection Code. The Discussion Paper presents a discussion of ten themes:

  • availability and choice
  • companies acting in the interest of consumers
  • innovation and disruption
  • digitization
  • unregulated activities
  • pricing
  • inform effectively
  • vulnerability
  • financial literacy
  • climate issues The CBI will engage with key stakeholders on the following topics:

Proposed revisions will in turn be subject to formal public consultation on proposed changes to the Code.

The register of beneficial owners of certain financial vehicles has been updated to provide for the mandatory inclusion of PPS numbers or a CBI reference number, where applicable

On October 27, 2022, following the incoming requirement to collect PPS numbers for the purposes of verification of information issued to the registry, effective Friday November 11, 2022, the current reporting template was updated to provide for mandatory inclusion a PPS Number, or a Central Bank of Ireland (CBI) reference number, as applicable, for each beneficial owner. The updated template will be available from November 11, 2022. To allow for the CBI transition from the current template to the updated template, VFCs are requested not to submit beneficial ownership declarations on Thursday, November 10, 2022. For Beneficial Owners who do not hold a PPS number, or have not been previously approved in a Pre-Approval Controlled Function (PCF) role under the Suitability and Probity Regime, the process for verifying Identity (VOI) is now operational, allowing beneficial owners to obtain a Central Bank of Ireland Reference Number.

CBI Announces Changes to Fitness and Probity Application Process

On October 3, 2022, the CBI announced that the CBI portal will be enhanced to facilitate the submission of applications to become a pre-approved controlled office holder. Individual Questionnaires will no longer be submitted through the Online Reporting System (ONR) and will now be submitted through the CBI Portal. These changes will be implemented from the first quarter of 2023.


EBA – Speech – The future regulation of the European payments industry

On October 14, 2022, at the annual “Payments Tomorrow” conference, Jose Manuel Campa’s keynote covered the ongoing review of the Payment Services Directive (PSD2) and the opportunities and challenges of moving from open banking to open finance. The future impact of PSD3 and the framework on open finance was also discussed.

Earlier this year, the EBA published a response to the call for review of PSD2. With decreasing levels of fraud, the EBA is of the opinion that PSD2 has been successful in pursuing its objectives. The PSD3 should be adjusted to relate to:

  • strengthen security requirements and fight against new types of fraud
  • ensure that consumers are properly protected and their needs taken into account
  • strengthen enforcement of legal requirements and scope of oversight
  • streamlining and simplifying the legal framework by merging PSD2 and the e-money directive
  • ensure easy access to payment systems and avoid risk reduction practices

The European Commission needs to consider whether or not to propose PSD3 and/or a framework on open finance in the future.

European Commission Report on Open Finance

On October 24, 2022, the Open Finance Report was released. Part B of the report describes the key elements of an open finance ecosystem as perceived by the expert group and presents some conclusions in this regard. Part C of the report includes findings from an assessment of open finance challenges and opportunities. To achieve the goal of open finance, a condition of open finance is to protect consumers and businesses by addressing risks related to data access and use and reducing usage issues , including consumer risks, exclusion risks and operational risks.

The European Commission has published its final report on the assessment of the risk of money laundering and terrorist financing affecting the internal market and linked to cross-border activities

On 27 October 2022, the European Commission published its final report on the assessment of the risk of money laundering and terrorist financing affecting the internal market and linked to cross-border activities. The Commission has proposed that the AML/CFT Regulation expand the list of obliged entities to include all crypto-asset service providers, as recommended by the Financial Action Task Force (FATF), and streamline beneficial ownership requirements across the EU. It would also restrict cash transactions, setting a maximum cap of €10,000 for accepting or making cash payments by people trading in goods or providing services. Furthermore, it would harmonize the EU approach towards third countries with strategic gaps in their AML/CFT regimes. The Commission has proposed to entrust the AML/CFT Authority with direct supervisory powers and should be operational in 2024. The Authority should start exercising its supervisory powers once the AMLD6 law has been transposed and the new rules will start to apply.

The Commission will continue to monitor the implementation of the recommendations of this supranational risk assessment and will report again, in principle by 2024, in the light of any changes that may be introduced in the current EU regulatory framework. The review will also assess how European and national measures affect risk levels.

Sanctions imposed in response to the crisis in Ukraine

Since February, the EU has imposed a number of sanctions in response to the crisis in Ukraine. As the crisis develops and sanctions continue to evolve, the CBI is publishing details of new restrictive measures/sanctions adopted in this regard, along with any associated EU/UN guidance, on their dedicated webpage.

On October 6, the CBI announced that the EU had adopted a new sanctions package. These measures include:

  • Amendments to the existing sanctions regime – Russia regime (sectoral measures) (Council Regulation 2022/1904)

This introduces a derogation from the prohibition on providing technical assistance, brokerage services or financing or financial assistance related to the maritime transport to third countries of crude oil or petroleum products originating in or exported from Russia, purchased from an established pre-price cap price. It also extends the prohibition on any dealings with certain Russian legal persons, entities or bodies owned or controlled by the state by prohibiting EU nationals from holding positions on the governing bodies of such legal persons, entities or organisms. In addition, it removes the threshold of the existing ban on the provision of crypto-asset wallet, account or custody services to Russian persons and residents, thereby prohibiting the provision of such services regardless of the total value of such crypto. -assets.

  • Amendments to the existing sanctions regime – Ukrainian regime (territorial integrity) (Council Regulation 2022/1905 and Council Implementing Regulation 2022/1906)

Council Regulation 2022/1905 introduces an additional criterion for inclusion on the list of natural or legal persons, entities or bodies subject to the asset freeze and the prohibition on making funds and economic resources available to designated persons and entities. It also introduces new derogations from the asset freeze and the prohibition on making funds and economic resources available to certain listed entities, and introduces additional provisions regarding Member States’ obligations regarding the granting of derogations. Council Implementing Regulation 2022/1906 adds 30 persons and seven entities to the list of persons, entities and bodies subject to restrictive measures.

  • Amendments to the existing sanctions regime – Regime of Ukraine (Donetsk and Luhansk) (Council Regulation 2022/1903)

This changes the title of the regulation and extends the geographical scope of the restrictions it contains to cover all Ukrainian non-government controlled areas in the oblasts of Donetsk, Kherson, Luhansk and Zaporizhzhia.

European Commission work program 2023

On October 18, 2022, the European Commission published its 2023 work program which it adopted with annexes and factsheets. Annex I presents a comprehensive list of 43 new policy initiatives divided into six headline ambitions. Those related to financial services include a European Green Deal, a Europe fit for the digital age and an economy that works for people. Annex III lists priority legislation, including the proposal for a regulation amending Regulation (909/2014/EU) (CSDR) on central securities depositories (CSDs), a proposal for a regulation amending MiFID and a proposal for a regulation on EU Green Bonds.

The European Commission proposes to accelerate the roll-out of instant payments in euros

On October 26, 2022, the European Commission adopted a legislative proposal to make instant payment in euros accessible to all citizens and businesses with a bank account in the EU and in EEA countries. Instant payments allow people to transfer money at any time of the day in ten seconds.

Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a single market for digital services and amending Directive 2000/31/EC (Digital Services Act) has been published

The regulations were published on October 27, 2022. The regulations will come into effect on the 20th day following their publication (November 16, 2022). The regulation will apply from February 17, 2024 (although specific rules for “very large online platforms” are expected to come into force earlier). Key measures include due diligence and content moderation rules for all online intermediaries providing services in the EU. Online platforms and search engines that do not comply with the regulation can be fined up to 6% of their worldwide turnover.