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EU Standards for Threat-Led Penetration Testing: New Cyber Compliance Imperatives for Financial Institutions

The EU has introduced Delegated Regulation (EU) 2025/1190, establishing the first harmonized standards for threat-led penetration testing ("TLPT") across the financial sector. The regulation aims to strengthen the cyber...more

Direct Supervisory Powers of the New European Anti-Money Laundering Authority

The European Union Anti-Money Laundering ("AML") package includes Regulation (EU) 2024/1620 of the European Parliament and of the Council of May 31, 2024, establishing the Authority for Anti-Money Laundering and Countering...more

New European Anti-Money Laundering Authority Will Have Broad Normative Powers

The European Union ("EU") Anti-Money Laundering ("AML") package adopted by the European Parliament and the Council on May 31, 2024, represents a major shift in the fight against money laundering and terrorist financing at the...more

Understanding DORA: Digital Operational Resilience Act Now in Effect for Financial Entities and ICT Service Providers

DORA, the first EU regulation designed to establish a unified and robust digital resilience standard for the financial sector, becomes directly applicable on January 17, 2025, introducing significant penalties and...more

CRD VI Requires Banks to Focus Even More on ESG Risk Management

Against the backdrop of the comprehensive recast of European Union ("EU") banking legislation, the EU legislator is increasingly focused on Environmental, Social, and Governance ("ESG") risks. In this context, ad hoc...more

Governance Under CRD VI: Harmonized EU Requirements

The Situation: Prior to the enactment of Capital Requirements Directive ("CRD") VI, corporate governance rules for the financial services industry were not harmonized across EU Member States....more

CRD VI and the New EU Third-Country Branch Regime: Harmonization Means Restricted Access

The Situation: The European Union ("EU") banking legislation has been substantially reviewed and provides notably for a new regime applicable to cross-border activities from non-EU jurisdictions....more

2022 Anti-Money Laundering and Sanctions Year in Review

In 2022, anti-money laundering ("AML") and sanctions controls were at the center of regulatory and enforcement activities in the United States and abroad. Globally, governments have continued to recognize the impact of AML...more

Model Terms Demanded for Cloud Service Agreements with European Banks

An interest group of EU banks that was formed to assist European financial institutions with their use of public cloud technology recently suggested model terms for the compliant use of cloud technology. On May 17, 2021,...more

Capital Relief for Software Assets: European Commission Amends Own Fund Requirements

The Development: New Regulation (EU) 2020/2176 (the "Regulation") provides regulatory capital relief, allowing certain software assets to be considered when calculating Common Equity Tier 1 ("CET1") capital. It entered into...more

Getting Cautious on Cloud Outsourcing: ESMA Consults on Proposed Guidelines

The Situation: On June 3, 2020, the European Securities Market Authority ("ESMA") published a consultation paper on Outsourcing to Cloud Service Providers ("Proposed Guidelines"), which will apply to any institution under the...more

European Banking Authority Issues Action Plan on Sustainable Finance

The Situation: The European Banking Authority ("EBA") issued its Action Plan on Sustainable Finance ("Action Plan") on December 6, 2019, setting forth an outline for its deliverables and activities related to environmental,...more

Leveling the Financial Institutions Playing Field: EBA Publishes Revised Guidelines on Outsourcing Arrangements

The Situation: The European Banking Authority ("EBA") published its Final Report on EBA Draft Guidelines on Outsourcing Arrangements ("Guidelines") on February 25, 2019, which will eventually replace the existing CEBS...more

EU Council Releases Anti-Money Laundering Action Plan

The Situation: In response to recent cases of money laundering in European banks, the European Union has released an action plan to reinforce its recently proposed anti-money laundering ("AML") and Countering Financing of...more

EU Commission Proposes Expanding EBA Antimoney Laundering Mandate

The EU Commission is proposing measures to increase financial sector supervision in the wake of money laundering incidents. The European Commission recently proposed expanding the Europe Banking Authority’s ("EBA") mandate...more

ECB Targets Non-Performing Loan Provisions in 2021 Supervisory and Evaluation Process

The Situation: The European Central Bank ("ECB") has announced that it will set bank-specific supervisory expectations for the provisioning of non-performing loans ("NPLs") in a consistent way across comparable banks, which...more

"PACTE": French President Macron's Action Plan for Business Growth and Transformation

The Situation: Delayed by two months, the long-awaited bill of President Macron's government relating to economic reforms and simplification of companies' day-to-day operations was tabled to the Cabinet on June 22, 2018....more

President Trump Signs the First Major Financial Services Deregulation Law in a Decade

President Trump has signed into law the Economic Growth, Regulatory Relief, and Consumer Protection Act ("Act"), with the principal goals of promoting U.S. economic growth, recalibrating burdensome rules, and strengthening...more

EU Regulatory Technical Standards for Strong Customer Authentication Enter Into Force

The Situation: The second EU Payment Services Directive requires banks to give third-party payment service providers ("TPPs") access to the bank accounts of their customers (with their consent), in order to enable TPPs to...more

Blockchain for Business

As the interest in blockchain technology grows, companies will be confronted with numerous decisions, challenges, and legal issues pertaining to its adoption. Relevant matters include the overall design and control of...more

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