FSIReview: Issue 18

Over the last six months, technology and innovation continue to dominate regulatory discourse across Southeast Asia. In Malaysia and Singapore, the evolution of payments in response to new technologies is a subject of interest for industry players. Financial institutions and regulators understand the impact of artificial intelligence, blockchain and other new technologies, which have the potential to fundamentally change how financial institutions run their businesses and how their customers borrow, save, pay, invest or insure.

Banks, insurers and investment management firms have begun harnessing exciting new digital technologies to improve efficiency and better service their clients. However, the use of these technologies come with a price: generating risk at multiple levels, which will require adapted response and control. Our first article looks at blockchain and discusses the possible risks that come with embracing these technologies.

Cyber threats and attacks are growing in both number and complexity. Implementing a cyber risk management plan is paramount to protecting a financial institution’s business. How do these firms measure success with cyber security? We take a closer look at a recent Deloitte survey examining how firms develop and deploy best practices.

Trade finance has regularly been seen as a “higher risk” business for money laundering, terrorist financing and potential breach of sanctions. Next, we explore the challenges faced by financial institutions in balancing trade-based money laundering compliance and business growth. We cap things off with an article exploring the scope of the legislation on benchmark administrators based outside of the EU and the options available for them to ensure their benchmarks can continue to be used after 1 January 2020.