Swiss Banking Watchdog Who Warned Credit Suisse Is Stepping Down
Hirschi, who was born in 1975, has led the watchdog's banks division since 2022 and the supervision of asset managers before that. He will depart on Aug. 31, Finma said in a statement on Tuesday.
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Crypto exchanges should block users from cashing out tokens with low ‘compliance scores,' BIS researchers say
In a new paper, researchers at the Bank for International Settlements proposed a solution to a problem that has long bedeviled the crypto industry: how to enforce money laundering regulations on permissionless blockchains. Blockchains' key attribute — their permissionless nature — has long been their greatest weakness, according to sceptics in public policy circles. Just like surfing the web, transacting on a blockchain is open to anyone with an internet connection, no signup required. Blockchains promise to level the financial playing field and 'bank the unbanked.' But they have also frightened lawmakers who believe the absence of regulated middlemen will turbocharge money laundering. In a paper published Wednesday, BIS researchers proposed scoring individuals' crypto holdings based on their transfer history. The BIS is the Switzerland-based global forum of central banks, and it has often looked askance at crypto, warning it could undermine financial stability and regulators' attempts to police financial markets. Crypto that had passed through the wallets of suspected criminals or through protocols often used to launder stolen funds could receive a lower score. Each country could set a threshold score that would determine whether the user could convert that crypto into fiat currency. The paper's authors called their proposal 'an alternative approach to AML compliance in permissionless blockchains which utilises the very features that make them impervious to traditional approaches.' While the paper seeks to find a middle ground that satisfies lawmakers while preserving the very features that make blockchains special, it is likely to receive a cool reception from many in the libertarian-leaning industry, who chafe at the notion that governments should impose any restrictions on financial transactions. 'BIS doesn't grok why [we're interested in] crypto,' Kathleen Tyson, a former attorney at the Federal Reserve Bank of New York, wrote on X. 'No one ever asked for KYC/AML/CTF state surveillance.' AML compliance scores In traditional finance, anti-money laundering efforts fall on intermediaries, such as banks. And regulators have been keen to turn some crypto developers into intermediaries, by forcing them to collect user information and monitor user accounts. But there are clear limits to this approach, according to the paper's authors. In most blockchains, the 'intermediary' — the person or people responsible for updating account balances — is a distributed network of computers known as validators. This creates a problem for regulators who want to impose on blockchains traditional methods of combatting money laundering: No single validator can be held accountable for account updates. Moreover, most blockchains are permissionless by design. That is, they are open networks accessible by anyone with an internet connection. But there's a hitch: most people use intermediaries to access blockchains, namely crypto exchanges such as Coinbase and Binance. These on- and off-ramps could form the basis of a novel anti-money laundering paradigm, according to BIS researchers. 'As the full history of transactions on the blockchain is publicly available, it could inform an assessment of how closely a particular unit of a cryptoasset is associated with past or current illicit activity,' they write. 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Australian lender ANZ reports third-quarter rise in deposits, loans
(Reuters) -Australia's ANZ Group said on Friday its customer deposits and net loans and advances rose in the third quarter, while credit risk-weighted assets edged higher due to growth in home lending at its domestic retail division. ANZ, Australia's fourth-largest bank in terms of market value, said its common equity tier 1 ratio, a key metric of spare cash, rose by 16 basis points since March to 11.9%. This reflected the effect of higher lending growth in both Australia retail and institutional segments. Mortgage payments in Australia past their due date for 90 or more days rose 4 bps to 88 bps as compared to last year, the banking group said in a limited quarterly trading update, which did not disclose its quarterly cash profit figure. The firm reported a growth of A$19 billion ($12.35 billion) in customer deposits in the quarter. Its net loans and advances grew 2%. ($1 = 1.5389 Australian dollars) Sign in to access your portfolio
