Impact Assessment

EBA to Assess the Potential Impact of IFRS 9 on EU Banks

In a press release dated 27 January 2016, the European Banking Authority (EBA) launched an impact assessment of IFRS 9 (dealing with financial Instruments) which is due to be implemented in the EU in 2018. The impact assessment is designed to assist the EBA to understand the likely impact of IFRS 9 on regulatory own funds, the interaction between IFRS 9 and other prudential requirements, and the way institutions are preparing for the application of IFRS 9. The assessment will be based on a sample of approximately 50 EU institutions. The EBA contemplates that the assessment process will need to be repeated in the run up to the implementation date for IFRS 9 as institutions are still developing their response to IFRS 9.

Amendments to Money Laundering Regulations 2007 to Come into Force on October 1

On July 17, HM Treasury published the Government’s response to its consultation on proposed changes to the Money Laundering Regulations 2007 (MLRs) together with its Impact Assessment (June 20). Response.  Impact Assessment.

The Government’s proposals aim to reduce the regulatory burden imposed by the MLRs, while strengthening the overall anti-money laundering (AML) regime. Among the proposals the Government plans to:

  • Retain the criminal penalties in the MLRs (even for minor breaches of the MLRs).
  • Remove the current distinction between bodies listed in Parts 1 and 2 of the MLRs for customer due diligence (CDD) reliance purposes.
  • Strengthen and clarify the powers of the Office of Fair Trading and HMRC.
  • Make the FSA the recognised formal supervisor for recognised investment exchanges (RIEs).