Also: AML breaches at Danske and Santander; Russia’s Radiotechbank scammed. Data by ORX News
Gruesome accounting practices and a questionable cast: plenty of grounds to reject Mifid licence
Could Cyprus have spotted the warning signs before handing FTX the keys to European customers?
The author outlines characteristics of machine learning classifiers, compares methods for dealing with imbalanced data issues, and proposes terms of best practice in model development, evaluation, and validation.
Also: Citi stumbles on market abuse; Jefferies faces latest fine over phone misuse. Data by ORX News
This paper uses the ten laws of operational risk along with taxonomies for inadequacies or failures and their impacts, and it also draws parallels with past crises, in order to make systematic predictions.
OpRisk North America: drop-off confounds expectations and mystifies regulators
Also: Class claim costs CA tribe $500m; Essilor eyeballs JPM in fraud case; Bank of Italy con job. Data by ORX News
Risk managers quizzed and confronted the firm, but lawsuits claim they were “systematically misled”
Extra capital charges will be split across the first six months of the year
UK’s economic crime agency calls for public, private sectors to seize moment following Ukraine invasion
Disruption from Ukraine and Covid puts managers on alert for misconduct, as risk controls are stretched to the max
Long timeline of executive order means international community may move faster than US lawmakers
The biggest op risks for the year ahead, as chosen by senior industry practitioners
Ukraine invasion, western sanctions and Russian response seen driving big rise in cyber and supply chain risks
Embryonic work on quantum neural networks raises hope of faster, more accurate models
Proposed FinCEN ruling asks regulators to look beyond design to whether AML measures actually work
Industry groups dislike retread of rules around fraud and manipulation, and want longer comment period
In this paper, the authors investigate financial fraud in companies listed on the Athens Stock Exchange during the period 2008–18 and propose a model to detect fraudulent financial statements.
Observers raise questions over verifying beneficial owner info on proposed FinCEN database
Also: Santander plays Santa; JPM in messaging mayhem; ‘Sterling Lads’ cost HSBC a couple of bricks. Data by ORX News
Despite more fraud and crypto crime, firms’ op risk losses fall in number and in volume. Data by ORX News
Also: Westpac client scams go west; Navient and AFTS schooled over student loan misrule. Data by ORX News
Also: ING mirrors ABN client loan loss; CS lands huge fine for tuna bonds. Data by ORX News