Global Regulator & Central Bank News Roundup
Edition 442026Week of November 2
Global developments
The FATF has published a report examining the illicit financial flows behind scam compounds. The report traces how the criminal networks running these operations generate, launder and reinvest their proceeds, and identifies the main obstacles authorities and the private sector face in disrupting them. It sets out six principles for an effective response, calling on authorities to target the organisers and shared infrastructure of these networks rather than individual compounds, to act before stolen funds move beyond reach, and to protect both fraud victims and people trafficked into scam work.
The Financial Action Task Force (FATF) published a report on how scam compound networks generate, launder and reinvest criminal proceeds, together with six principles for disrupting them. The report treats scam compounds as nodes in transnational criminal ecosystems that combine fraud with trafficking in human beings, corruption and money laundering, and urges authorities to target the wider network rather than individual sites. It is the first step in the FATF's broader roadmap on fraud. Scam compounds have expanded rapidly since around 2020, with annual losses estimated in the tens of billions of USD and victims in more than 100 jurisdictions. Operations are fragmenting into smaller, mobile cells and spreading beyond Southeast Asia, while common controllers and financial infrastructure can remain in place. Thailand reports that funds can leave the financial system within three to five minutes, while victims take around 20 hours on average to realise they have been scammed. Detection therefore remains largely reactive, with most investigations triggered by victim reports rather than suspicious transaction reports. Jurisdictions should prioritise disrupting capabilities that are shared across operations or difficult to replace, building upstream action against the advertising, recruitment and telecommunications infrastructure behind scams while preserving downstream payment intervention and asset tracing. Because the first 24 to 72 hours are critical for recovery, rapid response arrangements should enable the financial institution or virtual asset service provider controlling the payment, account or wallet to act, supported by authorities through intelligence and formal powers. Trafficked workers should be protected from punishment for offences they were compelled to commit. Success should be measured by lasting damage to criminal business models rather than by arrests or takedowns. The findings will inform the next phase of the FATF's work on fraud.
The Egmont Group has issued guidance on implementing 18 requirements for FIU operational independence and autonomy, covering independent intelligence decisions, domestic and international cooperation, leadership appointments, resource control, confidentiality and accountability. It emphasises that effective independence requires safeguards against external interference in both legal frameworks and day-to-day operations, with assessments examining how governance arrangements function in practice.
The Egmont Group has published guidance on the interpretation and implementation of the 18 requirements for the operational independence and autonomy of financial intelligence units (FIUs). Grounded in Financial Action Task Force (FATF) Recommendation 29 and the Egmont Group Charter, the guidance sets out legal, governance and operational safeguards to protect FIUs from undue political, governmental and industry influence. It emphasises that FIUs must be able to independently determine their analytical priorities, request and disseminate financial intelligence, and cooperate with domestic and foreign counterparts, regardless of their institutional structure. The guidance addresses several interconnected safeguards, including merit-based appointments and objective dismissal procedures for FIU heads, their authority over staffing and recruitment, and adequate financial and technical resources that can be deployed without external interference. It also calls for clear separation of FIU functions and resources from those of host authorities, exclusive control over sensitive information and access to IT systems, and legal protection for personnel acting in good faith. These arrangements must be accompanied by accountability mechanisms covering legal compliance, financial management and overall performance, without allowing oversight bodies to influence individual operational decisions or access confidential intelligence. A central principle is that operational independence must be assessed both in law and in practice. The guidance recommends examining actual decision-making, administrative dependencies and potential external interference, rather than relying solely on formal governance structures. It provides practical implementation measures, indicators of shortcomings and assessment approaches to support FIU self-assessments, peer reviews and national authorities developing or revising FIU legislation and governance frameworks.
A BIS working paper examines four scenarios for the future of banking, projecting that emerging digital and platform-based models could account for 3–27% of banking-system assets over the next decade, while traditional banks retain roughly three-quarters of assets but face growing competition for customer relationships and revenues. Digitalisation could compress bank margins, increase earnings volatility and accelerate deposit outflows, while growing operational dependencies could amplify financial stability risks and shorten the interval between liquidity stress and solvency problems. The paper highlights supervisory priorities including reassessing liquidity assumptions, strengthening operational and third-party resilience, treating weak profitability as a solvency vulnerability and improving oversight of emerging business models and their links to traditional banks.
The Bank for International Settlements (BIS) published a working paper examining how technological change, regulation, consumer preferences and macro-financial conditions could reshape banking business models and financial stability over the next decade. Drawing on approximately 9,000 banks across more than 150 jurisdictions, the study develops four illustrative scenarios in which emerging models, including digital-only banks, platform and embedded finance providers, and decentralised finance, reach between 3% and 27% of banking-system assets, compared with approximately 3.5% under a trend baseline. Traditional banks retain at least roughly three-quarters of assets across the scenarios, but technology-based providers could contest around 40% of the banking revenue pool as customer relationships, credit origination and distribution increasingly shift away from institutions that retain the underlying exposures. The study identifies growing pressure on bank profitability, liquidity and solvency, with the effects varying across scenarios. Under accelerated digitalisation and platform expansion, competition for deposits and customer relationships compresses net interest margins, potentially by 20–40 basis points in the platform expansion scenario, while greater reliance on fee and platform income increases earnings volatility. Digital channels also reduce deposit stability and accelerate withdrawals across both traditional and emerging models, potentially shortening the interval between liquidity stress and capital impairment from weeks to days or hours. Meanwhile, operational dependencies, concentrated technology providers and data-driven credit assessment create additional channels for risk transmission. Mid-sized retail and commercial banks face particular competitive pressure, while political uncertainty presents the highest system-wide risk despite limiting the growth of emerging models, as weaker earnings, deteriorating asset quality and funding stress affect institutions across all business models. The authors identify four supervisory priorities applicable across scenarios: reassessing digital deposit outflow assumptions underlying liquidity requirements, strengthening operational and third-party resilience, treating weak profitability as a solvency vulnerability, and improving supervisory data on emerging business models and bank–non-bank interconnections. Additional measures depend on how the sector evolves, including reassessing the regulatory perimeter for platform providers, strengthening oversight of credit origination and partner-bank dependencies, preparing recovery and resolution arrangements for providers operating outside traditional bank structures, and monitoring stablecoin exposures and cross-border funding vulnerabilities.
"The World Federation of Exchanges has published two papers warning that the growing shift from multilateral exchanges to bilateral trading can weaken the market conditions needed for effective investor protection, including transparent price formation and accessible liquidity. It urges policymakers to prioritise genuine intraday market depth over headline trading volumes, scrutinise the impact of fragmented trading on investor costs and best execution, and require newer markets to demonstrate investor protection standards comparable to regulated exchanges.
The World Federation of Exchanges (WFE) has published two papers examining the role of market design in protecting investors as trading increasingly shifts away from multilateral exchanges towards private, bilateral execution. The papers argue that investor protection depends not only on rules governing financial intermediaries, but also on transparent and accessible markets that enable those rules to be enforced. The WFE warns that growing fragmentation can undermine these conditions by reducing the liquidity genuinely available to investors, weakening public price formation and making it harder to assess whether intermediaries achieve best execution. Against this backdrop, it calls on policymakers to look beyond headline trading volumes and give greater weight to accessible market depth, transparent price discovery and effective oversight of market participants. Notably, the WFE argues that exchanges support investor protection through transparent, rules-based trading, fair market access and market surveillance. By contrast, private bilateral execution can draw on exchange-generated prices without contributing to public price discovery, while fragmented trading and fleeting quotes make it harder for market makers to manage risk and maintain liquidity. Although approximately USD 650 billion in shares trades daily on regulated markets worldwide, this figure reveals little about the market depth available at any given moment. Reduced access to reliable liquidity can increase investors' transaction costs and make it harder to determine whether intermediaries have achieved best execution. Against this backdrop, the WFE calls for closer scrutiny of bilateral trading, including greater transparency about its contribution to investor outcomes and more consistent reporting of asset managers' portfolio turnover and transaction costs. It also argues that newer markets, including those for cryptoassets, prediction markets and carbon credits, should demonstrate how their trading arrangements support investor protection and meet the standards expected of regulated exchanges.
Active global consultations
The Committee on Payments and Market Infrastructures and the Board of the International Organization of Securities Commissions are seeking feedback on a discussion paper examining the risk management challenges arising from financial market infrastructures’ increasing reliance on third-party service providers, including for critical services. The paper reflects FMIs’ systemically important and highly interconnected role and focuses on how external and intra-group service arrangements can increase operational risk and create channels through which disruptions may be transmitted across the financial system. It does not propose additional guidance but seeks views on whether the identified challenges are comprehensive and whether further engagement or policy support would be beneficial. The paper identifies six principal challenges: increasing complexity and interconnectedness of FMI ecosystems, including cyber-related risk; concentration of third-party service providers and resulting single points of failure, vendor lock-in and systemic dependencies; complex and opaque supply chains and limited visibility of nth-party providers; difficulties designing practicable exit strategies and substituting providers, especially in stressed conditions; imbalances in bargaining power that can limit audit, information-sharing, testing and service-level rights; and variation in regulatory, supervisory and oversight expectations across jurisdictions.
The Committee on Payments and Market Infrastructures and the Board of the International Organization of Securities Commissions are seeking feedback on a discussion paper examining the risk management challenges arising from financial market infrastructures’ increasing reliance on third-party service providers, including for critical services. The paper reflects FMIs’ systemically important and highly interconnected role and focuses on how external and intra-group service arrangements can increase operational risk and create channels through which disruptions may be transmitted across the financial system. It does not propose additional guidance but seeks views on whether the identified challenges are comprehensive and whether further engagement or policy support would be beneficial. The paper identifies six principal challenges: increasing complexity and interconnectedness of FMI ecosystems, including cyber-related risk; concentration of third-party service providers and resulting single points of failure, vendor lock-in and systemic dependencies; complex and opaque supply chains and limited visibility of nth-party providers; difficulties designing practicable exit strategies and substituting providers, especially in stressed conditions; imbalances in bargaining power that can limit audit, information-sharing, testing and service-level rights; and variation in regulatory, supervisory and oversight expectations across jurisdictions.
The Committee on Payments and Market Infrastructures (CPMI) and the Board of IOSCO are consulting on a voluntary, non-binding cyber resilience toolkit intended to provide financial market infrastructures with practical, technology-neutral support for strengthening their cyber resilience frameworks and implementing operational resilience-related components of the Principles for financial market infrastructures, as informed by the 2016 CPMI-IOSCO Guidance on cyber resilience for financial market infrastructures. The toolkit is organized around four areas: (1) governance of cyber risk and resilience, including board and senior management capabilities, ecosystem risk management, maturity models and resilience metrics; (2) identification and design of extreme but plausible cyber scenarios, including scenario scope, threat intelligence, emerging risks and ecosystem dependencies; (3) response, resumption and recovery planning, covering critical operations and information assets, infrastructure and data resilience, third-party dependencies, contingency arrangements, safe resumption and the disconnection and reconnection of ecosystem entities; and (4) cyber resilience testing and exercising.
The Committee on Payments and Market Infrastructures (CPMI) and the Board of IOSCO are consulting on a voluntary, non-binding cyber resilience toolkit intended to provide financial market infrastructures with practical, technology-neutral support for strengthening their cyber resilience frameworks and implementing operational resilience-related components of the Principles for financial market infrastructures, as informed by the 2016 CPMI-IOSCO Guidance on cyber resilience for financial market infrastructures. The toolkit is organized around four areas: (1) governance of cyber risk and resilience, including board and senior management capabilities, ecosystem risk management, maturity models and resilience metrics; (2) identification and design of extreme but plausible cyber scenarios, including scenario scope, threat intelligence, emerging risks and ecosystem dependencies; (3) response, resumption and recovery planning, covering critical operations and information assets, infrastructure and data resilience, third-party dependencies, contingency arrangements, safe resumption and the disconnection and reconnection of ecosystem entities; and (4) cyber resilience testing and exercising.
The Financial Stability Board (FSB) is consulting on eight principles to guide financial authorities in FSB member jurisdictions in adapting regulation and supervision to evolving risks while reducing unnecessary complexity and duplication. Building on internationally agreed standards and reflecting domestic circumstances, the principles call for modernisation to become an ongoing part of designing, implementing and reviewing frameworks, with the aim of preserving or enhancing financial system resilience. Authorities should consider tailoring requirements to institutions’ risk profile, size, complexity and systemic importance, and address in a timely manner the risks they judge material, including emerging vulnerabilities. Supervision should be clear and streamlined, with technology complementing rather than replacing supervisory judgement, and regulation should remain responsive to innovation. Authorities in the same jurisdiction should coordinate to improve coherence and minimise duplicative information collection. Significant policy changes should be informed by stakeholder consultation and assessment of expected costs, benefits and cumulative effects, with ongoing reviews testing whether frameworks achieve their intended outcomes.
The Financial Stability Board (FSB) is consulting on eight principles to guide financial authorities in FSB member jurisdictions in adapting regulation and supervision to evolving risks while reducing unnecessary complexity and duplication. Building on internationally agreed standards and reflecting domestic circumstances, the principles call for modernisation to become an ongoing part of designing, implementing and reviewing frameworks, with the aim of preserving or enhancing financial system resilience. Authorities should consider tailoring requirements to institutions’ risk profile, size, complexity and systemic importance, and address in a timely manner the risks they judge material, including emerging vulnerabilities. Supervision should be clear and streamlined, with technology complementing rather than replacing supervisory judgement, and regulation should remain responsive to innovation. Authorities in the same jurisdiction should coordinate to improve coherence and minimise duplicative information collection. Significant policy changes should be informed by stakeholder consultation and assessment of expected costs, benefits and cumulative effects, with ongoing reviews testing whether frameworks achieve their intended outcomes.
The Basel Committee on Banking Supervision is consulting on whether to formally incorporate its 2022 agreement on cross-border exposures within the European Banking Union (EBU) into the framework for global systemically important banks (G-SIBs). Under this agreement, which already applies in practice, a parallel set of G-SIB scores is calculated for EBU-headquartered G-SIBs. These parallel scores recognise 66% of the score reduction that would result from treating intra-EBU exposures as domestic exposures. When the relevant authority proposes it, they are used to adjust these banks’ bucket allocations according to supervisory judgement. Any downward adjustment is limited to a single bucket. The parallel scores do not affect any bank’s classification as a G-SIB, or the scores or bucket allocations of banks outside the EBU. The proposals would amend chapter SCO40 of the Basel Framework, the G-SIB assessment reporting instructions and the GSIB1 disclosure template. Given that they formalise existing practice, they would apply with immediate effect once finalized.
The Basel Committee on Banking Supervision is consulting on whether to formally incorporate its 2022 agreement on cross-border exposures within the European Banking Union (EBU) into the framework for global systemically important banks (G-SIBs). Under this agreement, which already applies in practice, a parallel set of G-SIB scores is calculated for EBU-headquartered G-SIBs. These parallel scores recognise 66% of the score reduction that would result from treating intra-EBU exposures as domestic exposures. When the relevant authority proposes it, they are used to adjust these banks’ bucket allocations according to supervisory judgement. Any downward adjustment is limited to a single bucket. The parallel scores do not affect any bank’s classification as a G-SIB, or the scores or bucket allocations of banks outside the EBU. The proposals would amend chapter SCO40 of the Basel Framework, the G-SIB assessment reporting instructions and the GSIB1 disclosure template. Given that they formalise existing practice, they would apply with immediate effect once finalized.
Regional developments
The HKMA and HKUST have launched a post-quantum cryptography toolkit to support banks’ transition planning, following an initial sectoral preparedness score of 2.3 out of 10. Banks are expected to establish senior management-reviewed milestones, assess cryptographic exposures and supplier dependencies, and develop prioritised transition roadmaps. The HKMA targets full sectoral readiness by 2030, with an interim preparedness score of 5 to 6 anticipated as a possibility by the 2028 survey.
The Hong Kong Monetary Authority (HKMA) and the Hong Kong University of Science and Technology (HKUST) have launched a Post-Quantum Cryptography (PQC) Toolkit to help banks plan and implement their transition to quantum-resistant cryptography. The initiative follows the HKMA’s July 2026 assessment, which found that the banking sector remained at an early stage of quantum preparedness, with an initial Quantum Preparedness Index (QPI) score of 2.3 out of 10. The Toolkit provides a structured framework for translating this assessment into practical transition plans, supporting the HKMA’s objective of achieving full sectoral readiness by 2030. The Toolkit includes a reference manual covering 23 workstreams and four practical tools for collecting cryptographic asset information, assessing external dependencies, identifying potential target architectures and developing transition roadmaps. In an accompanying supervisory circular, the HKMA strongly encourages authorized institutions to use the Toolkit in a manner proportionate to their risk profiles and operational complexity. Banks are expected to establish clear preparation milestones subject to regular senior management review, assign accountability for quantum-related risks and transition decisions, and progressively expand cryptographic inventories across systems and critical operations. They should also develop prioritised transition roadmaps addressing resource requirements and dependencies on critical suppliers and group service providers, while strengthening their ability to upgrade cryptographic algorithms without material operational disruption. The HKMA expects the sectoral QPI score could reach 5 to 6 at the next survey, scheduled for the second quarter of 2028, as an intermediate milestone towards the target score of 10 by 2030. The Toolkit will be updated to reflect technological developments, international standards and practical implementation experience.
The Hong Kong Monetary Authority (HKMA) has launched Project SAGE to support the adoption of agentic finance while addressing associated governance and regulatory risks. The project will explore AI agent applications in consumer payments, business transactions and machine-to-machine payments, alongside issues relating to agent identity, delegated authority, interoperability, liability and consumer protection. An expert group of financial institutions, technology providers, professional service firms and academia will support the initiative.
The Hong Kong Monetary Authority (HKMA) has launched Project SAGE, or Securing Agentic Finance with Governance and Enablement, to support the development and adoption of financial services involving artificial intelligence (AI) agents while addressing associated risks and governance challenges. The initiative focuses on four areas: exploring practical applications of agentic finance, verifying AI agents' identities and authority, developing interoperability standards, and examining legal and regulatory considerations. Project SAGE will support industry participants in testing applications across business-to-consumer transactions, including commerce and everyday payments, business-to-business activities such as procurement and treasury management, and machine-to-machine payments for digital services. Work on agent identity will explore Know Your Agent practices, authentication mechanisms and verification of delegated authority, while discussions on interoperability will address standards and protocols for secure interactions between AI agents. Legal and regulatory considerations will cover governance arrangements, liability and consumer protection. The HKMA has also established an Agentic Finance Expert Group comprising financial institutions, technology providers, professional service firms and academia to provide expertise and support implementation of the project.
India’s International Financial Services Centres Authority has recognised operating leases of GPUs and connected data centre equipment, including hybrid operating and financial leases, as a financial product in GIFT IFSC. The measure covers AI accelerators, integrated computing systems and associated infrastructure, enabling businesses to access computing equipment without substantial upfront investment while creating new opportunities for lessors. A forthcoming leasing framework will establish the rules for finance companies undertaking these activities.
Further to its consultation earlier this year, India’s International Financial Services Centres Authority (IFSCA) has formally recognised operating leases of graphics processing units (GPUs) and connected data centre equipment, including hybrids of operating and financial leases, as a financial product in GIFT IFSC. This extends the IFSC’s equipment leasing activities into artificial intelligence (AI) infrastructure, building on existing arrangements for aircraft, ships and oilfield equipment. The measure is intended to facilitate private investment in computing infrastructure in India, which remains entirely dependent on imports of such equipment, while expanding the range of leasing activities undertaken through GIFT IFSC. The scope covers general purpose GPUs, AI accelerators, tensor processing units, neural processing units and comparable accelerated computing technologies, as well as integrated rack-scale AI systems. It also includes associated servers, storage, networking, interconnect and power equipment, together with related parts and accessories, where dedicated to and directly associated with GPUs. Under the leasing model, businesses can access identified computing equipment through periodic payments rather than large upfront purchases, while lessors assume obsolescence and residual-value risks associated with rapid technological advances. The model is distinct from GPU-as-a-Service arrangements, where customers purchase computing capacity without controlling identified hardware. The initiative is intended to support the commercial computing requirements of cloud operators, colocation providers, hyperscalers and enterprises, complementing publicly supported computing infrastructure under the IndiaAI Mission, which primarily serves startups, researchers, academia and public institutions. A forthcoming framework for leasing activity in IFSC will establish the rules governing such leasing activities by finance companies operating in GIFT IFSC.
The Monetary Authority of Singapore (MAS) has launched a SGD 30 million grant to strengthen insurers’ infrastructure investment capabilities and is consulting on lower capital charges for qualifying infrastructure debt and equity investments and senior investment-grade securitisation tranches. MAS also plans to recognise more external credit assessment institutions and introduce standardised disclosures and guidance to streamline investment eligibility assessments.
The Monetary Authority of Singapore (MAS) has announced a SGD 30 million grant to support insurers in developing infrastructure investment capabilities in Singapore, alongside proposed changes to the insurance capital framework that would reduce capital charges for qualifying infrastructure and securitisation investments. MAS also plans to expand the recognition of external credit assessment institutions and streamline the assessment of eligible infrastructure investments. The measures aim to facilitate insurers’ investment in long-term assets while maintaining prudential safeguards and supporting infrastructure financing in Asia. The new Infrastructure Capability Development Grant for Insurers, funded through the Financial Sector Development Fund, has taken effect and will help cover the costs of establishing dedicated investment teams, developing staff expertise and engaging professional services. Separately, MAS is consulting on three categories of capital treatment changes. Rated infrastructure debt meeting specified credit quality and eligibility criteria would attract lower capital charges. Reduced charges would also apply to qualifying infrastructure equity and debt with additional risk mitigants, including contractual revenue arrangements, limited demand risk and support from creditworthy counterparties. Senior investment-grade securitisation tranches would similarly benefit where they meet criteria relating to simplicity, transparency and comparability, or specified safeguards such as portfolio diversification and liquidity protections. MAS will also recognise additional external credit assessment institutions with relevant infrastructure and securitisation expertise. To facilitate insurers’ assessment of investments against the criteria for lower capital charges, MAS is working with the industry to develop standardised disclosure templates, clearer assessment guidance and fund-manager declarations, while maintaining appropriate due diligence.
The Monetary Authority of Singapore has announced that the Future of Finance Institute, established in June 2026, has commenced operations with an initial focus on AI in financial services. Through PathFin.ai, BuildFin.ai and SafeFin.ai, it will facilitate knowledge sharing, develop practices and tools for safe agentic AI deployment, and support implementation of MAS' AI risk management guidelines. The institute will progressively expand its activities to other technologies, including tokenisation.
The Monetary Authority of Singapore (MAS) has announced that the Future of Finance Institute (FFI) has commenced operations, initially focusing on artificial intelligence (AI) adoption and risk management in financial services. Established in June 2026 as a public-private platform to accelerate financial innovation, FFI will operate through three pillars, PathFin.ai, BuildFin.ai and SafeFin.ai, to facilitate industry knowledge sharing, advance the deployment of agentic AI and strengthen AI risk management practices. Its activities will progressively expand to other areas of financial innovation, including tokenisation. Under PathFin.ai, FFI will establish a Knowledge Hub to broaden access to AI solutions, validate their practical usefulness and match them with financial institutions' needs. Cross-sector Communities of Practice will facilitate exchanges on common implementation challenges. BuildFin.ai will bring together financial institutions, technology firms and research institutions to develop guidance, industry standards, shared tools and infrastructure for AI deployment, with particular emphasis on the safe use of AI agents, building on the recently released SAFR framework. SafeFin.ai will develop practical resources to support implementation of MAS' Guidelines on AI Risk Management, including for agentic AI, and enhance the existing MindForge AI Risk Management Toolkit to address AI use case risk assessments, testing and assurance, and third-party AI. Alan Lim, who concurrently serves as Head of the Financial Infrastructure and AI Office at MAS, has been appointed interim CEO of FFI. Further details on the SafeFin.ai initiatives will be announced at a later date.
South Korea’s Financial Services Commission announced Cabinet approval of rules introducing pre-filing IPO demand assessment and cornerstone investor arrangements. Cornerstone investors will face additional financial eligibility requirements, staggered six-to-10-month lockups and allocation caps of 20% on KOSPI and 30% on KOSDAQ for the ordinary institutional tranche. The rules are scheduled to take effect on November 13, 2026.
South Korea’s Financial Services Commission announced that the Cabinet approved amendments to the Enforcement Decree of the Capital Markets Act establishing detailed rules for pre-filing demand assessment and cornerstone investors in initial public offerings (IPOs). Following a consultation launched in July 2026, the framework will allow underwriters to assess institutional demand before filing a securities registration statement and to pre-allocate shares to eligible institutional investors subject to holding restrictions. The measures aim to improve IPO pricing by incorporating market demand earlier and reduce selling pressure immediately after listing. Under the pre-filing demand assessment framework, underwriters may approach eligible professional investors after completing an issuer due diligence report, subject to confidentiality agreements and recordkeeping requirements. Private fund managers and discretionary investment managers must have at least KRW 30 billion in entrusted assets, without the reduced KRW 5 billion threshold otherwise available after two years of registration. Cornerstone investors must additionally hold capital or entrusted assets worth at least 20 times their proposed IPO subscription. Their allocations will be subject to staggered lockups, with 50% held for six months, 30% for eight months and 20% for 10 months. Cornerstone allocations are capped at 20% collectively and 10% individually of ordinary institutional allocations on KOSPI, compared with 30% and 20%, respectively, on KOSDAQ. Agreements with related institutional investors, including major shareholders and their related parties, are prohibited, as is exchanging direct or indirect benefits conditional on cornerstone investor agreements. The amendments are expected to be promulgated in November and take effect on November 13, 2026, alongside the amended Capital Markets Act.
Indonesia's Financial Services Authority (OJK) launched an integrated blueprint for Islamic finance development, focusing on industry competitiveness and innovation, ecosystem integration, and harmonization of regulation, licensing and supervision across financial sectors. Key priorities include product diversification, institutional strengthening, digital transformation and closer links between commercial Islamic finance, social funds and the real economy. The framework also incorporates commercial, social and environmental value as guiding principles for industry development.
Indonesia's Financial Services Authority (OJK) has launched an integrated blueprint for Islamic finance development, establishing a common strategic framework across banking, capital markets, insurance, pensions, financing, financial technology and digital financial assets. The framework aims to position Islamic finance as a mainstream financial services option through three strategic pillars: developing a sound, competitive and innovative industry; building a comprehensive and inclusive ecosystem that contributes to the wider economy; and harmonizing regulation, licensing and supervision across financial sectors. The first two pillars focus on strengthening institutional capacity, differentiating Islamic financial products and integrating financial services with the wider halal economy and Islamic social finance. Product development priorities include waqf-based financial instruments, financing arrangements using salam and parallel istisna contracts, and Sharia-compliant bullion activities. The regulatory pillar seeks greater consistency in regulatory frameworks, licensing arrangements and supervisory approaches across Islamic financial sectors, supporting a more coordinated approach to industry development. These priorities are underpinned by four strategic foundations: (1) digital transformation and cyber resilience, (2) stronger roles for parent companies and Islamic financial conglomerates, (3) workforce capabilities, and (4) deeper integration of Islamic finance with social funds and the real economy. The blueprint also adopts the principle of maslahat, linking commercial sustainability with social and environmental benefits, including inclusive financial access, productive financing and responsible resource allocation.
The Australian Securities and Investments Commission has released findings of a review identifying widespread deficiencies in superannuation trustees' use of complaints to detect and address systemic issues, with 11 of 45 trustees failing to analyse complaints data regularly and 14 identifying no systemic issues over two years. The review also revealed weaknesses in root cause analysis and governance, alongside prolonged delays in resolving identified problems and remediating affected members.
The Australian Securities and Investments Commission (ASIC) has released the findings of a review into how superannuation trustees use member complaints to identify and address systemic service failures, revealing widespread shortcomings in complaints analysis, governance and remediation. Its assessment of all 45 trustees it regulates, including an in-depth review of 10, found that many trustees were failing to recognise complaints as early warning signs of broader problems affecting members. ASIC has urged trustees to strengthen their internal dispute resolution (IDR) arrangements to comply with enforceable requirements under Regulatory Guide 271. Across the industry, 11 of 45 trustees did not regularly analyse complaints data to identify systemic issues, while 24 identified fewer than five such issues over the two years to June 2025, including 14 that identified none. The Australian Financial Complaints Authority identified systemic issues from complaints at almost twice the rate of trustees over the same period. The in-depth review found that nine of 10 trustees lacked performance metrics for identifying systemic issues, while several attributed more than 60% of recorded complaint root causes to members rather than investigating potential service deficiencies. ASIC also identified inadequate board oversight, limited consideration of member impacts during major fund changes, and significant delays in rectifying and remediating confirmed systemic issues. The review also highlighted prolonged failures to address identified problems. Among confirmed systemic issues still being addressed by the 10 trustees, 35% had remained open for more than 360 days, while another 15% were expected to take more than 360 days to resolve. In one case, complaints about inaccessible online documents persisted for years before a trustee identified system failures affecting more than 250,000 members. Another trustee had yet to compensate an estimated 500 members for more than AUD 1.3 million in unpaid retirement bonuses two years after discovering the problem.
New Zealand's Financial Markets Authority (FMA) has published its 2026 Audit Quality Monitoring Report, finding that audit quality remains generally good despite persistent weaknesses in audit execution, the evaluation of management's assumptions and the sufficiency of audit evidence. Key shortcomings included incomplete audit procedures, insufficient scrutiny of management's judgements and inadequate verification of information supporting investment valuations in managed investment schemes and reliance on third-party service providers alongside weaknesses in quality management practices.
New Zealand's Financial Markets Authority (FMA) has published its 2026 Audit Quality Monitoring Report, finding that audit quality remains generally good despite persistent weaknesses in audit execution, the evaluation of management's assumptions and the sufficiency of audit evidence. Of the 20 audit files reviewed across eight registered firms during 2025/26, four were rated non-compliant, representing 20%, compared with 36% in 2024/25. Recurring deficiencies included failures to complete planned audit procedures, adequately investigate exceptions and assess the reliability of information used to support audit conclusions. Auditors also did not consistently exercise sufficient professional scepticism when evaluating management's judgements and estimates. In some cases, they accepted management's explanations without obtaining corroborating evidence, considering alternative accounting treatments or adequately testing assumptions underlying impairment assessments. A thematic review of audits involving managed investment schemes identified further shortcomings in evidence supporting investment valuations, particularly for investments in unlisted schemes. Some auditors relied on investment manager confirmations without sufficient additional verification or failed to assess whether third-party control reports provided adequate assurance over relevant controls and reporting periods. Similar deficiencies arose in audits involving cloud-based accounting systems, where auditors relied on system-generated information without establishing its reliability. The FMA also identified weaknesses in the safeguards intended to prevent or detect audit deficiencies. Engagement quality reviews were not always conducted sufficiently early or thoroughly to challenge significant audit judgements, with reviewers failing to identify deficiencies they should have detected in three of the four non-compliant files. Although firms have made progress implementing systems of quality management, many could not adequately demonstrate that controls operated effectively in practice.
The EBA has outlined further reductions in supervisory reporting requirements following consultation feedback, postponing the first reference date to December 2027 and deferring selected areas until December 2028. Changes include streamlined collateral, ESG, operational risk and stress-testing reporting, alongside the integration and simplification of credit risk and IFRS 9 benchmarking. The final draft ITS package is due in December 2026, with supporting technical materials to follow in early 2027.
The European Banking Authority (EBA) has outlined further changes to its proposed simplification of EU supervisory reporting requirements following industry feedback on its April 2026 consultations. The revised package will introduce additional reductions in reporting requirements, greater proportionality and longer implementation timelines while preserving information needed for supervision. The first reference date for new requirements has been postponed from the originally proposed September 2027 timetable to December 2027, with selected areas, including liquidity, asset encumbrance, supervisory benchmarking and environmental, social and governance (ESG) reporting, deferred until December 2028. The revised proposals will further simplify reporting templates and instructions, reduce reporting frequencies and scale back collateral, stress testing and ESG-related reporting, while removing selected reporting thresholds. Credit risk and IFRS 9 benchmarking will be integrated into the supervisory reporting framework, with substantially streamlined IFRS 9 requirements and greater emphasis on consolidated reporting. Granular operational risk loss reporting will also be simplified through fewer data fields, while a dedicated stress-testing module will introduce separate submission timelines and frequencies alongside further reductions in required data. Beyond the harmonised EU framework, members of the EBA Board of Supervisors have committed to reducing overlapping national supervisory data requests where equivalent information is already collected through EBA reporting. The EBA will publish its final report on the draft Implementing Technical Standards (ITS) in December 2026 and submit the package to the European Commission for adoption, followed by the supporting data point model, taxonomies and validation rules in early 2027. Complementary measures include guidelines on supervisory and resolution data requests expected by the end of 2026, an EU-wide public repository of such requests scheduled for the first quarter of 2027, and further proposals on reporting change management in the first half of 2027. During the transition, institutions should continue to follow the specified existing reporting arrangements for IFRS 18, the Fundamental Review of the Trading Book, operational risk losses and supervisory benchmarking.
The EBA has revised its internal governance Guidelines to align with CRD VI, clarify management accountability and third-country branch requirements, and strengthen proportionality across banks' governance arrangements. The final framework simplifies documentation of roles and responsibilities, introduces more flexible conflict of interest safeguards and reduces diversity monitoring requirements, while retaining expectations for independent internal controls and risk management.
The European Banking Authority (EBA) has published revised Guidelines on internal governance under the Capital Requirements Directive (CRD), aligning governance expectations with changes introduced by CRD VI while simplifying requirements and strengthening proportionality. The revisions clarify responsibilities and accountability within management bodies, introduce more detailed governance provisions for third-country branches and refine expectations for managing conflicts of interest and maintaining effective internal controls. The framework adopts a more risk-based approach, allowing institutions to tailor governance arrangements to their size, organisational complexity and risk profile. A key area concerns the mapping of duties and individual statements of responsibilities introduced under CRD VI. Institutions must document the allocation of responsibilities and reporting lines across management bodies, senior management and key function holders, supported by individual statements specifying their respective duties. The final Guidelines reduce documentation requirements, permit the use of existing governance repositories and provide an optional template for individual statements. For third-country branches, the revised framework clarifies local management responsibilities, including the requirement for at least two persons effectively directing the branch's business in the relevant Member State, and sets proportionate expectations for internal control functions and sufficient local operational capacity, taking account of branch classification and risk profile. Other revisions simplify conflicts of interest provisions, including safeguards where a former CEO becomes chair of the same institution within two years of leaving the executive role, and reduce the granularity of diversity and inclusion monitoring requirements. The Guidelines also clarify the independence and responsibilities of internal control functions and align governance expectations with the Digital Operational Resilience Act and requirements for managing environmental, social and governance risks.
The Central Bank of Ireland has outlined five priorities for tokenised finance, covering central bank money settlement, legal and regulatory clarity, innovation engagement, interoperability and macro-financial risks. It favours targeted adaptations to existing frameworks and will support Eurosystem settlement and collateral initiatives, legal reforms and interoperable tokenised deposits. A new Tokenisation Access Point, focused industry sprints and analytical reports will inform its policy and supervisory approach.
The Central Bank of Ireland has published a feedback statement on distributed ledger technology (DLT) and tokenisation in financial services, outlining a five-priority work programme covering central bank money settlement and collateral, legal and regulatory clarity, innovation practices, market interoperability and macro-financial risks. Drawing on 42 consultation responses, the Central Bank concludes that scaling tokenised finance requires coordinated progress across legal frameworks, governance, infrastructure and settlement arrangements. It favours targeted adaptations to existing regulatory frameworks rather than a separate regime, while emphasising that evidence of tokenisation's economic benefits, commercial viability and resilience under stress remains limited. Key priorities include establishing legal certainty around on-chain ownership, settlement finality and smart-contract enforceability, including legislative changes to enable legally authoritative on-chain registers for tokenised assets. The Central Bank also emphasises that regulated entities remain accountable for governance and risk management when using decentralised infrastructure, including dependencies on smart contracts, validators and external data providers. Interoperability between traditional and tokenised infrastructures, common technical and identity standards, and access to regulated settlement assets are essential to prevent market and liquidity fragmentation. Central bank money should remain the anchor for wholesale settlement, complemented by interoperable tokenised commercial bank deposits and other regulated settlement assets. The work programme includes supporting the Eurosystem's Pontes settlement initiative, with further enhancements from mid-2027, and contributing to the Appia blueprint for an integrated European tokenised financial ecosystem by 2028. The Central Bank will also advance work on the collateral eligibility of tokenised assets and support domestic and European legal reforms. To strengthen its engagement with industry, it will launch a Tokenisation Access Point for implementation and regulatory questions, introduce focused Innovation Insights sprints addressing issues such as DLT resilience, smart contracts and governance, and publish Tokenisation Insights Reports. Further work will support common standards, interoperable tokenised deposits and research into the implications of tokenisation for market functioning, liquidity and financial stability.
The UK Financial Conduct Authority plans to launch a dedicated regulator-led Quantum Experimentation Group in the first quarter of 2027 to explore the use of quantum machine learning in detecting money laundering and fraud. Financial services firms, technology providers and research laboratories will use a shared synthetic dataset to evaluate quantum approaches. Separately, the FCA is trialling a supervisory self-assessment tool with an initial sample of firms to evaluate their preparedness for migration to post-quantum cryptography.
The UK Financial Conduct Authority (FCA) has announced plans to establish a dedicated regulator-led Quantum Experimentation Group in the first quarter of 2027, bringing together financial services firms, quantum technology providers and research laboratories to explore practical applications of quantum computing. The initiative will initially focus on assessing whether quantum machine learning can improve the detection of money laundering and fraud, including its potential advantages over existing classical computing approaches. Participants will use a common FCA-provided synthetic dataset and a defined financial crime problem to develop and evaluate quantum-based solutions, addressing barriers related to access to suitable testing data and specialist expertise. The group will facilitate collaboration and the sharing of findings on the performance, opportunities and limitations of quantum approaches, while participants remain responsible for developing and assessing their own solutions. The findings will also help the FCA identify practical barriers, associated risks and potential future regulatory considerations. Expressions of interest from UK financial services firms, quantum technology providers and research laboratories are open until 31 December 2026. Separately, the FCA also announced a trial of a supervisory self-assessment tool with an initial sample of firms to assess the maturity of their plans for migration to post-quantum cryptography and the industry's preparedness. The FCA intends to use the findings to identify common challenges and examples of good practice.
FINMA has unveiled Subsuma, an AI pilot designed to accelerate assessments of whether fintech business models require regulatory licences or other arrangements. The system uses three open-source models hosted on FINMA's own infrastructure to analyse enquiries, assess applicable legal provisions and generate traceable outputs. Initial testing indicates that larger models are needed for operational use, while FINMA will retain human oversight of all regulatory responses.
In a speech at the Swiss Bankers Association's Digital Finance Day, FINMA's Marlene Amstad unveiled Subsuma, a new artificial intelligence (AI) pilot designed to support assessments of whether fintech business models require a licence or other regulatory arrangements. The system aims to accelerate and improve the consistency of FINMA's responses to regulatory enquiries from fintech firms, which number nearly 100 annually. It represents an extension of FINMA's existing use of AI for internal supervisory analysis to preparing regulatory assessments intended for external communication, while retaining human oversight of all decisions. Subsuma analyses incoming enquiries, summarises business models to identify information relevant to legal assessments and evaluates potential licensing requirements against applicable statutory provisions. Its outputs must include references to underlying case files to ensure that conclusions are traceable. The pilot uses three open-source language models running on FINMA's own hardware, including Apertus, a Swiss-developed multilingual model. The models have been evaluated using past enquiries and new test cases, with subject-matter experts assessing their outputs without knowing which model produced them. AI models have also been used to evaluate one another. Initial testing has shown that larger models are needed to achieve high-quality results, and FINMA plans to introduce more powerful variants for operational use. The pilot has already established the methodological foundations and user interface for further development. The intended benefits include faster, more consistent regulatory responses and freeing up supervisory specialists to focus on complex cases requiring professional judgement. FINMA will retain human control over the process, with its experts responsible for reviewing and signing all outgoing correspondence.
The Dubai Financial Services Authority has published a white paper identifying the conditions needed to scale tokenised financial markets beyond fragmented applications, including institutional-grade custody, trusted digital settlement assets, interoperability and legal certainty. The report highlights the need for common standards, cross-border regulatory coordination and effective risk management as tokenisation becomes more integrated with existing financial infrastructure.
The Dubai Financial Services Authority (DFSA) has published a white paper examining the conditions needed to scale tokenised financial assets from isolated applications into connected, commercially viable markets. Drawing on industry perspectives and market research, the report finds that tokenisation is moving beyond experimentation, particularly in investment products and market infrastructure, but adoption and secondary market liquidity remain limited. As of October this year, distributed tokenised assets excluding stablecoins totalled approximately USD 39 billion, including USD 14.7 billion in tokenised US Treasury funds. The report identifies institutional custody, trusted digital settlement assets, interoperability, legal certainty and cross-border coordination as critical to wider adoption. Institutional participation will depend on custody arrangements that protect private keys, segregate client assets, reconcile ownership records and address operational and technology risks. Tokenised securities markets also require widely accepted digital settlement assets, potentially combining regulated stablecoins, tokenised commercial bank deposits and wholesale central bank money. While simultaneous settlement could reduce counterparty exposures and improve collateral mobility, these benefits must be weighed against additional liquidity and prefunding requirements and the potential loss of netting efficiencies. Scaling beyond isolated platforms will require common legal, operational and technical standards connecting blockchain networks with existing trading, payment and post-trade infrastructure. Greater legal certainty over ownership, settlement finality, enforceability and insolvency arrangements will be essential, alongside regulatory coordination across jurisdictions. The report also highlights that greater interconnectedness and automation could accelerate the transmission of financial stress and introduce dependencies across infrastructure providers, making effective governance and operational resilience increasingly important.
The Dubai Financial Services Authority 2026 AI Survey finds that AI adoption among responding authorised firms reached 71%, up from 52% in 2025 and 33% in 2024, while generative AI use rose to 67% from 48% in 2025 and 22% in 2024. Deployment remains concentrated in internal activities, with growing reliance on third-party applications and cloud infrastructure alongside uneven governance and monitoring practices. Interest in AI agents is also increasing, although operational deployment remains limited.
The Dubai Financial Services Authority (DFSA) has released key insights from its 2026 AI Survey, finding that 71% of responding authorised firms use artificial intelligence (AI), up from 52% in 2025 and 33% in 2024. Generative AI adoption reached 67%, compared with 48% in 2025 and 22% in 2024. While AI use is expanding, deployment remains uneven, with growing reliance on third-party applications and cloud infrastructure. Among AI adopters, 39% reported deploying AI across a considerable share of a business area, up from 23% in 2024, although 74% had at least some applications in pilot stages or limited use. Generative AI remains concentrated in internal functions, used by 91% of generative AI users, while its use in internal systems and controls rose to 52% from 39% in 2025. Reliance on third-party applications increased to 75% of generative AI users, from 65% in 2025, while 73% of AI adopters ran more than 90% of their AI applications on cloud platforms, up from 62% in 2025. These dependencies introduce additional data-security, service-continuity and concentration risks. Governance arrangements remain uneven, with 61% of AI adopters reporting an AI governance framework, 53% having organisational policies governing AI use and 41% maintaining inventories of AI use cases. Post-deployment monitoring practices also vary. Meanwhile, 53% of respondents were exploring, testing, piloting or deploying AI agents, although only 14% had reached deployment stage.
The Saudi Capital Market Authority (CMA) has approved stricter IPO requirements covering underwriting commitments, book-building orders and financial disclosures. Underwriting obligations must take effect at the start of book-building, while investor orders must be supported by verifiable liquidity and become binding by the subscription payment deadline. Issuers must also provide forward-looking financial forecasts covering the remainder of the latest reported financial period and at least the following financial year, supported by clear assumptions and risk disclosures.
The Saudi Capital Market Authority (CMA) has approved regulatory provisions to strengthen initial public offering (IPO) practices, introducing stricter underwriting obligations, new requirements for investor orders during book-building, and expanded disclosure of forward-looking financial information. The provisions apply to issuers without previously listed securities and took effect upon publication. Under the new requirements, underwriting agreements must be signed and take effect before book-building begins, with the underwriter's obligation to purchase all offered shares becoming effective at the start of that process. If the underwriter's ownership of the shares causes the issuer to fail to meet listing requirements, the shares cannot be listed, but the underwriter must still purchase the full offering. The provisions also tighten controls over book-building orders, requiring them to reflect investors' available liquidity, with financial capacity verified solely through cash or cash equivalents. Orders submitted at a specified price must cover all lower prices within the offering range and become binding for payment no later than the subscription payment deadline specified in the prospectus. The provisions also require issuers to disclose forward-looking statements and financial performance forecasts covering the remainder of the latest financial period included in the prospectus or registration document and at least the following financial year. These forecasts must be clear, not misleading and based on reasonable, measurable grounds, with disclosure of the underlying methodology, material assumptions and key risks that could cause actual results to differ. Financial advisers must exercise professional due diligence when advising issuers on these forecasts to reach a reasonable opinion on their reliability.
The Capital Markets Authority of Rwanda is consulting on draft regulations implementing Rwanda's May 2026 virtual asset law, covering asset issuance and the licensing of service providers. Stablecoins must be fully backed by reserves and redeemable at par within two working days, while tokens representing real-world assets must be fully collateralised. Service providers need a separate licence for each of six categories, with exchange, broker-dealer and custody services kept apart.
The Capital Markets Authority of Rwanda (CMA) has launched a consultation on two draft regulations implementing the law regulating virtual asset business, enacted on 25 May 2026. The drafts, developed with the National Bank of Rwanda (NBR), govern the issuance and admission to trading of virtual assets, with tailored rules for stablecoins and tokens representing real-world assets, and the licensing and supervision of virtual asset service providers (VASPs). The issuance draft requires CMA approval and an approved whitepaper for any issue or admission to trading, although exchanges may list assets with no identifiable issuer after enhanced due diligence. Stablecoins must be at least 100% backed by liquid reserves in the reference currency, or 120% where backed by a pool of reserve assets, held in segregated accounts beyond the reach of the issuer's creditors. Holders can redeem at par within two working days without fees. At least 30% of funds received must be held in trust accounts with custodian banks in Rwanda, with the rest invested locally. Tokens representing real-world assets must be fully collateralised by assets held with a licensed custodian, ring-fenced from the issuer's insolvency estate and independently valued at least annually. Minimum paid-up capital ranges from RWF 300 million to RWF 1 billion depending on the asset category, plus 2% of supply for stablecoins and tokens representing real-world assets. Retail investors receive a cooling-off period of five business days during primary issuance. Under the VASP draft, each of six service categories, spanning issuance, trading, custody and investment services, requires a separate licence, with minimum paid-up capital ranging from RWF 40 million for investment advisors to RWF 600 million for exchanges and custodians. Exchange, broker-dealer and custody services cannot be combined. Custodians must keep at least 80% of client virtual assets in cold storage, and client fiat money must sit in segregated accounts at banks in Rwanda. The travel rule applies to all transfers regardless of amount. VASPs must apply for a licence immediately once the regulations take effect.
The Central Bank of Nigeria has introduced a licensing and supervisory framework covering stablecoins, tokenised bank deposits and virtual asset services, including platform-facilitated peer-to-peer transactions. The regulations impose minimum capital requirements of NGN 10 billion and NGN 15 billion for naira-referenced and foreign-currency-referenced stablecoin issuers, respectively, alongside full reserve backing, additional liquidity safeguards and redemption requirements. They also establish controls over foreign-exchange activity, financial crime and customer protection, with existing operators required to apply for authorisation within 180 days of commencement.
The Central Bank of Nigeria (CBN) has issued regulations establishing a comprehensive framework for the licensing, regulation and supervision of non-security virtual assets, including naira-referenced and foreign-currency-referenced stablecoins, Deposit Money Tokens and related virtual asset services. The framework requires Nigerian incorporation and CBN licensing for stablecoin issuers, with separate authorisation arrangements for other service providers, firms regulated by the Securities and Exchange Commission (SEC) and existing CBN-licensed financial institutions. It covers exchange, custody, payments, remittances and platform-facilitated peer-to-peer services, including activities directed at Nigerian customers from abroad, while preserving the SEC's jurisdiction over securities-related virtual assets. The regulations establish minimum paid-up capital requirements of NGN 10 billion for naira-referenced stablecoin issuers, NGN 15 billion for foreign-currency-referenced issuers and NGN 1 billion for other virtual asset service providers, additional to capital requirements under other applicable licences. Stablecoins must maintain continuous reserve backing of at least 100% of outstanding obligations, plus a 2% overcollateralisation buffer, with at least 40% of reserves held in cash or high-quality liquid assets. Naira-referenced issuers must additionally maintain at least 20% of their reserve pool on deposit with the CBN, while foreign-currency-referenced issuers must maintain separate operational liquidity sufficient to cover the highest of USD 10 million, 15% of Nigeria-linked liabilities or 30 days of stressed outflows. Holders are entitled to redemption at par by the following business day, subject to specified exceptions, and issuers must publish monthly independent reserve attestations. The framework prohibits algorithmic stablecoins, stablecoins primarily backed by other virtual assets and interest or yield payments to stablecoin holders. It also subjects foreign-currency stablecoin transactions and cross-border transfers to foreign-exchange controls, while requiring express approval and enhanced customer verification, transaction monitoring and reconciliation for platform-facilitated peer-to-peer services. Licensed entities must meet governance, cybersecurity, customer protection and anti-money laundering requirements, including Travel Rule compliance. Separately, banks may issue Deposit Money Tokens representing existing naira deposit liabilities with prior CBN approval, subject to reconciliation and settlement requirements. Existing operators must register with the CBN within 30 days, commence supervisory reporting within 60 days and apply for the appropriate licence or authorisation within 180 days of commencement, subject to interim operating conditions.
The South African Reserve Bank (SARB) has extended the cessation deadline for all Johannesburg Interbank Average Rate (Jibar) tenors from 31 December 2026 to 31 May 2027 to allow more time to finalise legislative and operational arrangements for tough legacy contracts. Market participants are expected to maintain their transition efforts towards the South African Rand Overnight Index Average (ZARONIA), while the SARB advances guidance on Term ZARONIA and plans to use it to determine Synthetic Jibar as a replacement benchmark for tough legacy contracts."
The South African Reserve Bank (SARB) has postponed the cessation of the Johannesburg Interbank Average Rate (Jibar) by five months, from 31 December 2026 to 31 May 2027, to allow more time to complete the legal and operational arrangements for tough legacy contracts. The extension reflects uncertainty over whether the legislative solution for contracts that are difficult to amend, and the steps needed to implement it, can be completed before the original deadline. All Jibar tenors will cease publication after 31 May 2027. Market participants are expected to maintain their transition programmes, address outstanding contractual, systems and operational requirements, and further reduce their reliance on Jibar in favour of the South African Rand Overnight Index Average (ZARONIA), which remains the preferred successor rate. The SARB and the Market Practitioners Group (MPG) are also advancing the remaining elements of the transition framework, particularly guidance on the use of Term ZARONIA, a forward-looking rate based on ZARONIA overnight index swap market activity. Following the appointment of FTSE Russell as its administrator in April 2026 and a series of market consultations, the SARB plans to define the specific cases in which Term ZARONIA may be used. The rate is also expected to underpin Synthetic Jibar, which the SARB intends to designate as one of the replacement benchmarks for tough legacy contracts.
The U.S. Office of the Comptroller of the Currency has issued a supervisory framework directing examiners to assess banks’ use of super intelligence and agentic systems proportionately to their potential consequences, autonomy and human oversight, without treating SI as a separate risk category. The framework sets out 16 components and an illustrative four-tier risk classification methodology to guide examination of governance, controls, testing, resilience and third-party risks, with greater scrutiny of consequential or autonomous applications. It does not establish new regulatory requirements or supervisory expectations for banks.
The Office of the Comptroller of the Currency (OCC) has issued a supervisory framework to guide its examiners in assessing banks’ use of super intelligence (SI) and agentic SI across activities such as credit decisioning, payments, fraud detection and customer service. The framework directs examiners to assess SI-related risks within existing risk categories, rather than treating SI as a distinct risk category or requiring banks to establish a separate SI risk appetite. Supervisory assessments are to be proportionate to the potential consequences of SI use, the degree of system autonomy and the extent of human oversight, taking account of each bank’s size, complexity and risk profile. The framework does not establish new regulatory requirements or supervisory expectations for banks. The framework sets out 16 components grouped into six pillars covering purpose, risk, controls, oversight, resilience and assurance. These provide examiners with considerations for evaluating how banks define permitted uses, classify risks, establish accountability and manage SI-related exposures through existing governance, model risk management, compliance and operational controls. A central principle is that control intensity should reflect the potential consequences and reversibility of an SI system’s actions rather than its technical sophistication. An illustrative four-tier methodology distinguishes critical applications, such as autonomous payment agents and real-time credit decisioning, from lower-risk uses such as internal productivity tools. Higher-risk applications may warrant more restrictive permissions, direct human oversight, independent validation and stronger resilience measures. In applying the framework, examiners may assess whether banks have effective mechanisms to detect and contain inappropriate SI actions, suspend affected systems, maintain business continuity and remediate resulting customer harm. Other considerations include whether testing and ongoing monitoring can identify hallucinations, behavioral drift and unauthorized activity, and whether banks maintain sufficient visibility and control over third-party SI systems and associated data and cybersecurity risks.
The National Association of Insurance Commissioners estimates that US insurers held USD 1.21 trillion in private credit investments as of year-end 2025, representing approximately 13% of cash and invested assets. Of this, USD 544 billion comprises privately rated bonds, business development companies and private credit funds that warrant closer monitoring due to structural complexity, limited transparency and associated risks. Enhanced reporting disclosures adopted in 2026 are expected to improve the identification and assessment of these exposures.
The National Association of Insurance Commissioners (NAIC) has published an analysis of US insurers’ private credit investments, estimating total exposure at USD 1.21 trillion as of year-end 2025, representing approximately 13% of cash and invested assets. More than half of these holdings comprise established asset classes with relatively straightforward credit risks and structures, including private placement bonds, bank loans and middle-market collateralized loan obligations. The NAIC's primary focus is on USD 544 billion in privately rated bonds, business development companies and private credit funds, which may introduce additional risks through structural complexity, limited transparency and underlying exposure to alternative assets. These areas of focus represent approximately 6% of insurers’ cash and invested assets and 9% of total bond holdings, comprising USD 512 billion in privately rated bonds and USD 32 billion in business development companies and private credit funds. Their characteristics can complicate assessments of underlying credit quality, valuation and liquidity. The report also highlights risks associated with payment-in-kind interest arrangements, which can delay recognition of credit deterioration and reduce expected cash inflows. While private credit non-accrual rates have remained relatively low and defaults broadly stable, the performance of more complex investments under a prolonged economic downturn remains uncertain. The exposure estimates reflect limitations in current reporting classifications and data availability. Enhanced reporting disclosures adopted in 2026, including more detailed distinctions between types of private placement securities, will be included in year-end 2026 annual statement filings and are expected to improve the identification, classification and analysis of insurers’ private credit exposures.
The U.S. FinCEN and the Federal Reserve Board have withdrawn their 2020 proposal to lower the cross-border Recordkeeping Rule and Travel Rule threshold from USD 3,000 to USD 250 and clarify the rules' application to certain digital asset transactions. The decision follows concerns over compliance burdens and reflects changes in digital asset markets and regulation. The existing threshold remains unchanged.
The Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board have withdrawn their 2020 proposal to lower the Recordkeeping Rule and Travel Rule threshold for collecting, retaining and transmitting information on funds transfers and transmittals that begin or end outside the United States from USD 3,000 to USD 250. The proposal also sought to clarify the rules' application to domestic and cross-border transactions involving convertible virtual currencies and digital assets with legal tender status. The existing threshold remains unchanged, and no final rule will be issued under the proposal. The agencies received nearly 3,000 comments, with widespread opposition to the threshold reduction. Commenters cited increased compliance burdens, particularly for smaller financial institutions, potential disruption to international remittances, greater exposure from retaining personal information and insufficient analysis to justify the change. Views on the digital asset provisions were mixed, with opponents highlighting technological limitations and the absence of international messaging standards. The agencies cited the passage of more than five years since the original proposal and significant developments in digital asset markets and regulatory frameworks, including the GENIU5 Act.
Monetary policy developments
Decisions during the past week extended the pattern of selective tightening as prolonged cost pressures delayed the expected return of inflation to target. Australia raised its cash rate by 25 bp to 4.85%, citing broad-based inflation and signs that higher fuel costs were spreading to other prices despite slowing activity. The Bank of England increased its rate by 25 bp to 4.00%, judging that the prolonged Middle East energy shock and stronger-than-expected activity warranted action, although wider effects on wages and prices remained limited. Sweden raised rates by 25 bp to 2.00%, anticipating higher inflation as growth strengthens and supply costs increase. Moldova likewise increased its base rate by 200 bp to 11.00% to restrain strong demand and prevent energy-tariff increases from generating broader price pressures. The remaining central banks with scheduled decisions largely opted to maintain rates. Norway retained its restrictive stance as inflation remained above target, while leaving scope for further tightening if necessary. Brazil held the Selic at 13.75%, balancing a sharper economic slowdown against renewed inflation pressures and expectations remaining above target. Mexico was the exception, cutting its rate as weak domestic demand supported continued disinflation, while signalling that rates would likely remain unchanged for an extended period.