Ever wondered about the intel the large team of SMEs inside RegPlatform Intel might be sharing? Here's an amuse bouche from this week: It is a sign of the extraordinary times in which we live that #moneylaundering reporting officers are mulling the possibility that a US administration will roll back sanctions against Russia. Putin and many others are under a variety of international sanctions but recent statements by the Trump administration suggest a possible divergence between (one time) allies over economic strategies. Any US weakening of sanctions will leave financial institutions in an invidious position; European countries have said they will not lift sanctions. The US administration has not explicitly said it is contemplating such a move but that a recent big sanctions conference in London discussed the option epitomises these uncertain times. Could divergence be a trigger point for EU/UK to stiffen #sanctions to keep up pressure? How might this be translated into action, for example in the form of greater enforcement in the UK/EU than in the US? Would divergence weaken the impact of EU/UK sanctions, perhaps fatally? How might companies and financial institutions respond to much talk of divergence, and would it affect those with US parent companies more seriously than those with EU/UK HQs? RegPlatform Intel reporters and experts are watching for signs of this in the coming weeks. The Bank of England’s FPC is monitoring the gyrations in global markets due to Trump's import tariffs and the UK is exposed to the fallout. Financial markets seemed to be functioning in an orderly way, but the Committee has said it would pay particular attention to firms using highly leveraged trading strategies in core markets and risks in the private equity market from slower growth. The FPC is also worried about the risk of reduced global co-operation which could make the financial system less resilient. This will play out in the coming weeks and months as firms dust down lessons learnt and revisit reforms passed in the aftermath of the 2008-9 financial crisis. The Financial Crimes Enforcement Network, US Treasury Network has been promising to issue a third Corporate Transparency Act rule — reporting and access were numbers 1 and 2 — that would harmonise beneficial ownership reporting with financial institutions' existing customer due diligence rule obligations. FinCEN has gutted the legislation as the Trump administration makes major changes, begging the question of whether a third rule is even necessary or logical. That will be something to watch this week. Paul Atkins, President Trump’s pick to lead the #SEC, has pledged to stop pushing for #ESG, #DEI and other considerations when in post at the agency; he was confirmed on 9 April. The SEC has also voted to stop defending the climate rule. It is unclear if Democrat states will step in to defend it or adopt copycat rules of their own with equally high requirements.
