Issue #4 - JPM, BNY, TD Bank NA, ISDA, CFTC, ECB, PSR, Temenos

📰 Welcome to the Newsletter

Good morning!

Welcome to Global Custody Pro – we're thrilled to have you on board! Our mission is to be your guide through the fascinating world of global custody, clearing, payments, and digital assets. We know it's a complex field with a lot to keep track of, so we've made it our job to sift through numerous sources and bring you the most important updates.

Table of Contents

• 📰 Welcome to the Newsletter

• 🌏 Global Custody News

• 🎶 People News

• 🚀 Digital Asset News

• 💬 Quote of The Week

🌏 Global Custody News

• It’s earnings season, and JPMorgan Chase earned net income of USD12.9 billion for the third quarter of 2024. Securities Services revenue was up 9% year-on-year to USD1.326 billion. Assets under custody grew 5.29% to USD35.8 trillion. LINK

• Also reporting third quarter earnings today, BNY earned total revenue of USD4.648 billion, up 5% year-on-year. Assets under custody and administration reached USD52.1 trillion. LINK

• TD Bank N.A. and its parent company TD Bank US Holding Company pleaded guilty and agreed to pay over $1.8 billion in penalties to resolve the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering. TDBNA pleaded guilty to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs. LINK

• ISDA has a paper that examines the potential challenges of expanding margin requirements to emerging markets for assets such as non-cleared derivatives. They note the need to ensure that margin rules are appropriate for the size of smaller markets that may not be netting jurisdictions. LINK

• The Securities and Exchange Commission of Thailand is consulting on proposals to increase scrutiny of securities transactions such as short selling. Thai securities firms may be required to enhance their processes and monitoring especially of foreign underlying clients. LINK

• The CFTC charged the former CEO of a carbon credit project developer with fraud involving voluntary carbon credits. These are the first CFTC actions for fraud in the voluntary carbon credit market. LINK

• The UK Payment Systems Regulator has finalised its fraud reimbursement rules, following on from a surge in authorised push payment fraud. Customers could be reimbursed up to GBP85,000. Shifting liability back towards payment providers will likely lead to more friction in the customer experience but reduce hundreds of millions of pounds in losses each year. LINK

• “AML automation” fintech Strise published its AML report, using AI to help summarise and analyse the transcripts of its popular podcast show. LINK

  • The AML Megaminds report, drawing from over 60 hours of expert interviews, reveals critical insights into the state of anti-money laundering efforts, with 70% of experts believing current measures are inefficient and 40% viewing sanctions as ineffective.

  • The report identifies key money laundering hotspots, common compliance missteps, and emerging financial crime trends, emphasizing the need for greater collaboration, real-time monitoring, and advanced technologies like AI to combat evolving threats.

  • The report forecasts a rise in sophisticated criminal techniques such as sanction evasion, synthetic identity fraud, and the exploitation of regulatory sandboxes, while proposing radical solutions like treating financial crime as a public health issue and mandating AI use across financial institutions.

🎶 People News

• Temenos announced the appointment of Barb Morgan, as Chief Product and Technology Officer. She joins Temenos after the London Stock Exchange Group, where she led the Microsoft-LSEG partnership. Her extensive career includes leadership roles at FIS, Capital One, Boeing, and Lucent Technologies. LINK

🚀 Digital Asset News

• In a speech, ECB member Piero Cipollone spoke about using new digital technologies to create a more unified European capital market. He noted that despite implementing programs like TARGET2, different regulation around asset servicing and corporate actions makes efficiencies harder to obtain. LINK

• Investment manager Van Eck has launched a USD$30mn venture fund to focus on crypto, fintech, and artificial intelligence opportunities. The fund will be managed by Wyatt Lonergan and Juan Lopez, both seasoned investors with experience in fintech and crypto ventures. The pair previously managed Circle Ventures, the venture arm of USDC stablecoin issuer Circle. LINK

💬 Quote of The Week