Vanquis tripped a terror sanctions wire — over an £8.99 purchase.

US banks line up their crypto playbooks after a key compliance shift.

Modern slavery — why it should be treated as an economic crime.

Read these stories and more at Bankingriskandregulation.com a service from the Financial Times.

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Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

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The top stories this week. The UK moves to ease tough due-diligence rules. Also. Inside a fraud lab taking on KYC injection attacks and deepfakes. And finally. The FCA says some wholesale firms are over-doing Consumer Duty.

The UK’s due-diligence regime is set for a rethink.Independent expert Caleb Hogg says planned changes could narrow when firms must treat clients as high risk — shifting how Enhanced Due Diligence is applied in practice.

Fraudsters are probing your KYC stack. We go inside Entrust’s lab where analysts test “injection attacks” — exploits that hijack capture flows and help deepfakes slip through. The takeaway: tighten liveness checks, watch sub-process handoffs, and stress-test with synthetic media.

A reality check from the FCA. Lucy McNulty reports that some wholesale firms have over-interpreted Consumer Duty — piling on cost and complexity without clear benefit. The signal: sharpen “fair value” evidence, but don’t gold-plate.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

This week, the UK’s new fraud law raises the stakes for boards. Francesca Washtell tracks how fines are surging across compliance hotspots, with crypto in the crosshairs. And Eden Harris explores whether Donald Trump could really sack Fed chair Jay Powell.

• Failure to prevent fraud: six steps to stay ahead — Ted Datta explains what boards must do to comply with the UK’s new fraud offence, from targeted risk assessments to evidence of “reasonable procedures”. With unlimited fines at stake, senior leaders cannot afford complacency.

• Regulatory fines skyrocket 400% — Francesca Washtell shows how crypto exchanges and fast-growing payment firms are now paying the price for weak controls. Regulators are punishing failures on KYC, suspicious activity reporting, and sanctions — while workloads soar and headcount lags.

• Lisa Cook case may determine if Trump can remove Jay Powell — Eden Harris reports on a legal battle with global consequences. If Trump succeeds in reshaping the Fed’s leadership, analysts warn of higher inflation, rising rates, and a direct hit to central bank independence.
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The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

This week, the American Bankers Association quietly drops DEI from its public messaging. Victor Smart tracks how US lenders are rebranding or scaling back diversity efforts under legal and political pressure. With regulatory risks rising, “workplace excellence” is the new euphemism — and compliance, not values, is setting the tone.

In a new book reviewed by Jennifer Geary, The Dark Pattern lays out the red flags behind some of the biggest corporate scandals of our time. From Wells Fargo to Theranos, it’s not rogue actors but broken cultures that pave the way to crisis. The fix? Clear goals, ethical incentives, and leaders who listen.

And finally, south-east Asia’s scam centres are evolving faster than our defences. Silvija Krupena argues that fragmented oversight is failing victims — and social media platforms must take responsibility. She calls for global, tech-powered coordination to stop what she calls a “criminal machine.”

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

This week, email is finally being pushed out of the back office. Diederik Geeraerts warns that City banks relying on inboxes to resolve trade failures are heading for operational chaos. With shorter settlement cycles on the horizon, automation is freeing up time — but many firms are still clinging to a system that belongs in 1985.

Around the world, some regulators are getting tougher, not looser. Farah Khalique reports that India is consolidating its rulebook, Bangladesh is liquidating lenders, and China is building financial giants to weather future shocks. Switzerland, still scarred by Credit Suisse, is pushing for stricter capital rules — while the UK continues to delay its Basel rollout.

And in Arizona, a sacred Apache site is testing lenders’ ESG commitments. Francesca Washtell reports on Oak Flat, where mining plans by Rio Tinto and BHP are colliding with indigenous rights. With investors from BlackRock to Norges Bank under scrutiny, the risks for banks include reputation, litigation, and community backlash.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

This week, Bangladesh’s central bank is pushing for full independence following the collapse of the Hasina regime. In an exclusive interview, governor Ahsan Mansur tells BRR that sweeping reforms — including forced mergers, liquidations, and a stolen asset recovery drive — are already underway to rescue a system burdened by up to 98% non-performing loans.

In the UK, a landmark court ruling has cleared the way for a £18bn car finance redress scheme. Caroline Wayman says lenders need to act fast — the FCA’s consultation closes soon, and most customers are due less than £950 each. Firms must be ready to calculate redress the moment the regulator’s new tools go live.

And the FCA’s sandbox revolution is entering its live phase. Jon Relleen says the Digital Securities Sandbox is poised for early 2026 trading, while applications for the AI sandbox — developed with Nvidia — close this month. The message from the regulator: move fast or fall behind.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

This week, Lloyds Banking Group completes a digital milestone that could reshape global finance. John Crowley reports on a real-time, on-chain interest rate swap settled with central bank digital money—an experiment backed by the Bank of England that shows programmable, real-time FX settlement is now a working reality.

In the US, Ken Westbrook warns that cyber scams are now a national security threat—and the country is falling behind. Drawing lessons from the war on drugs and child protection, he calls for a White House-led crackdown on transnational fraud, including a national fusion centre to tackle the threat.

And in the UK, AI-fuelled fraud is escalating fast. Francesca Washtell reports more than 217,000 fraud cases in just six months, with synthetic IDs, insider threats, and mobile account scams on the rise. Cifas calls it a national emergency—and warns the threat is outpacing traditional controls.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

This week, Europe’s top banking regulator is calling out banks for sloppy use of regulatory technology. David Whitehouse reports on how weak oversight, unchecked automation, and lack of internal expertise are fuelling a new wave of money laundering vulnerabilities — and why the EBA wants better controls in place.

UK company directors are under pressure as Companies House reforms approach. Francesca Washtell reveals that most firms are still unprepared for mandatory ID checks — and from September 1st, new rules mean banks could face criminal liability if third parties commit fraud on their behalf.

And with enforcement on the rise, Nick Ephgrave at the Serious Fraud Office has a warning: “We’re coming after them.” Victor Smart reports on why the SFO believes the financial sector needs tighter fraud controls — across suppliers, platforms, and anyone acting in a firm’s name.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

This week, UK banks have been told exactly where to focus their AML resources. Francesca Washtell reports on the National Crime Agency’s first-ever list of priority threats — from crypto scams to corrupt PEPs designed to help firms cut through the noise.

Europe’s cloud conundrum is deepening, as legal tensions between the EU and US leave banks stranded between compliance risk and innovation pressure. Kari McMahon unpacks how rigid contracts and diverging data laws are fuelling what insiders call “FOMU”, fear of messing up.

And finally, fintech darlings Monzo and Starling are learning hard lessons in risk management. Caleb Hogg explains how rapid growth, weak governance, and culture gaps triggered multi-million-pound fines.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

This week, Hawala, an ancient money transfer system, has made a comeback with a crypto twist. Giovanni Legorano reports on how law enforcement agencies are grappling with the rise of hawala networks repurposed for the digital age, as criminals exploit blockchain technology to launder money.

UK chancellor Rachel Reeves' Mansion House speech delivered what some are calling a regulatory reset. Anita Hawser and Aliya Shibli break down what’s in and what’s still up for consultation. And while ministers talk tech, one crypto insider says the real problem is speed. Laura Navaratnam argues the FCA has the tools to regulate digital assets now, it just isn’t using them.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

This week, Sweta Roy's exclusive interview with SEBI chair Tuhin Kanta Pandey as India's regulator cracks down on misconduct. From banning Jane Street to scaling up investor literacy, SEBI is ramping up both surveillance tech and ethical expectations.

Could the UK learn something from Singapore? John Crowley explores how the Monetary Authority of Singapore blends strict oversight with collaborative innovation – a "concierge" style praised by firms like Ripple and DBS. Also, The US 2025 tax bill may have opened the door to a new financial crisis. Patrick Boyle explains how non-bank lending now mirrors pre-2008 risks – with opacity, liquidity mismatches, and hidden bank exposure.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

In the news you need to know this week, security expert Heather Lowrie warns CEOs to brace for deepfake disinformation campaigns designed to tank share prices. With generative AI scams surging, Lowrie says trust is the new battleground.

A silent deadline is looming for third-country banks, as from early 2027, core banking services in the EU need to be booked through a local branch or subsidiary. Also, IBM’s Anne Leslie says boards pulling back on investment for cyber resilience are gambling with trust. Read the article here.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

In this episode; Banks face a new front in cyber warfare, inside their SaaS platforms. Third-party breaches are rising fast and some are calling for critical vendors to meet bank-grade protections. Read JPMorgan Chase's security chief, Patrick Opet discuss the situation.

In an opinion piece, Dea Markova says the new US GENIUS Act has flipped the script on stablecoins, giving dollar-backed tokens full legal backing, as well as a global edge. 

Also in this week's update, hear how The Financial Ombudsman Service is under fire for going beyond its brief. Critics say FOS rulings are acting like new regulation, overriding Financial Conduct Authority rules and clouding compliance.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

In the updates you need to know about this week; big changes are coming to US banking oversight. Michelle Bowman, the Fed’s new vice-chair for supervision, is proposing a regulatory reset - from capital rules to stress testing but critics warn a “tailored” approach may open the door to regulatory backsliding. Also, hear about CUBE's latest regtech acquisition. CEO Ben Richmond is betting big on collective intelligence, persuading banks like Citi and JPMorgan to share anonymised data in a new AI-powered compliance hub.

Our other big story this week is in AI, as Chantelle Obatolu, a compliance expert, warns that that staff are uploading sensitive data, misjudging matches - and trusting AI too much as the rush to roll out Copilot continues.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

In this episode; tariffs are wrecking your AI-models. And bank margins. That’s the warning from Emre Kazim, co-founder of Holistic AI. As volatile markets hit in 2025, Emre has revealed a prevailing weakness in banks’ AI-systems. Find out more on Banking Risk and Regulation.

In other tech news, Dr Jason Nurse from CybSafe says cyber security training cannot be a one-size-fits-all, with his research showing that younger staff want quick-hit how-to videos – while older members of teams want structured, written documentation.The other big story of the week; the UK might be seeing a breakthrough in open banking. Helen Child, CEO of Open Banking Excellence, is rallying insurers to underwrite a new liability model for the sector.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

In this episode, financial institutions have overcome their initial scepticism about GenAI to embrace platforms like ChatGPT, but they are growing increasingly concerned about how to handle customer data and the penalties for misuse and falling foul of GDPR. In other AI news, compliance and legal teams are being asked to evaluate technologies that evolve much faster than the processes designed to review them.

Josephine Robinson and Rebecca McKenzie say the question now is whether compliance will lead this change or be left reacting to it. Elsewhere on Banking Risk and Regulation, John Crowley looks at how an update to the Single Euro Payments Area rulebook means banks across the EU will need to receive and send euro-denominated instant payments in 10 seconds or less, around the clock, every day of the year.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

In this episode; India’s central bank says senior bank leaders who breach rules, or fail to enforce them. will face consequences. India correspondent Sweta Roy interviews deputy governor, M. Rajeshwar Rao, following a series of compliance failures, including misreporting and embezzlement, at co-op banks. New India Co-operative Bank has collapsed and the RBI is monitoring IndusInd Bank.

Also, editor Farah Khalique breaks down how the US, UK, and EU are rewriting the rules and trying to claim digital dominance. From the UK’s slow burn to the EU’s rigid MiCA regime, all eyes are now on the US, where regulators are clearing the runway for Wall Street. Our other top story this week; Esma chief Verena Ross talks to Lucy McNulty about softening the rules for banks in the EU.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team. Please share your feedback on The Brief using our short survey.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

In this episode; The US Office of the Comptroller of the Currency says banks can now offer crypto custody and trading, reversing earlier restrictions. Peter Marton from Fireblocks explains how the shift puts banks on firmer regulatory ground but warns that crypto-specific risks demand urgent attention. Also, margin calls are rising and many banks aren’t ready. Helen Adair says outdated back-office systems are slowing down dispute resolution and putting liquidity at risk. And Francesca Washtell highlights five frauds hitting banks in 2025 from cloned investment manager sites to deepfakes of Goldman Sachs execs.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

In this episode; SaaS is creating single points of failure that could crash global finance. That’s the warning from JPMorgan’s chief information security officer, Patrick Opet. The EU’s AI Act is now in force — and banks are scrambling to keep up. Alex Tsepaev asks if this is a regulatory straightjacket, or a much-needed framework for trust? And, the cost of cyberattacks isn’t just financial — it’s human. John McLoughlin says frontline cyber workers are suffering panic attacks, insomnia, and burnout. New research shows some are even contemplating self-harm — and barely anyone’s offering support.

The Banking Risk and Regulation Brief was developed using artificial intelligence and reviewed by our editorial team.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.

Farah Khalique, editor of Banking Risk and Regulation, introduces our new tool and asks for feedback.

Banking Risk and Regulation, a service from FT Specialist, provides actionable analysis for professionals working across the three lines of defence. We help financial institutions navigate the latest risks, regulations and compliance challenges and safeguard themselves at a time of increasing regulatory scrutiny and geopolitical instability.

The Banking Risk and Regulation Brief is produced using AI tools, overseen by the editorial team of Banking Risk and Regulation.

Hosted on Acast. See acast.com/privacy for more information.