Shaping the Future of the

European Union in Global

Instability

2024
Contents
01 04
Introduction Sustainable Finance

• Leadership Programs • Sustainable Finance

package
• Compliance officer
• EU Taxonomy for
• Chief Compliance sustainable activities
Officer
• European Corporate
• Chief Sustainability Sustainability
Officer reporting standards

• Chief Diversity Officer • Sustainable Finance

Disclosure Regulation
• General Counsel (SFDR)

• Compliance Academy

02 05
Ensuring Financial Financial
Stability in the EU Crimes

• Reform of bank crisis • EU Legal Framework on

management and Anti-Money Laundering
deposit insurance and Countering the
regulatory framework Financing of Terrorism

• What is the reform of • Anti-Money Laundering

CMDI about? and Countering the
Financing of Terrorism
• Investment services and Package
regulated markets
• High-risk third countries
• Central securities
depositories • Revised EU
methodology of High-
• Money Market Funds Risk countries
identification
• Political agreement on
the enhanced regulatory
framework for investment
funds

03
European Digital
Strategy

• Digital Finance

• Payment Services and

financial data access

• Payment Services
Directive 3 and Payment
Services Regulation

• Markets in Crypto-assets
(MiCa)

• Single Currency Package:

the Digital Euro

• E-ID adoption
More Insights for
Compliance Officers

Geopolitics
of regulatory
compliance 2023

The regulatory environment has become

increasingly complex. Compliance Vision's
guide on the Geopolitics of regulatory
compliance is designed to help leaders
anticipate 2023 regulatory challenges. The BFSI
is under pressure facing the consequences of
the Special Military Operation (SMO) in Ukraine
and the post-Covid-19 world, to build more
resilient organizations and a more inclusive
workplace. As a Compliance Officer, your role is
critical, and we wish to help you.

This Leadership Program combines dedicated

hard work by ex-Supervisors
of Regulatory Bodies, management consultants
& lawyers working in Tier 1
firms, including McKinsey, Bain & BCG
Management, or even banks such as Goldman
Sachs and BNPP. It shares high-value content
that will help you become a key player in helping
your organization comply with international
standards and local requirements (US, UK & EU)
regarding the latest Sanctions Regulations,
including Russia.

Our Leadership Program focuses on the Banking

and Financial Services Industry (BFSI). Still, it can
also benefit Financial Technologies companies Geopolitics
and other corporations such as Consulting and of regulatory
Law Firms.
Compliance 2023
You can benefit from the know-how of some of Source: Compliance Vision

the world's leading Compliance and Regulatory

Experts and boost your visibility with a Cost-
Friendly solution.
Download
 More Insights
for Compliance
Officers

Geopolitics of
Financial Crimes
2023

According to Compliance Vision’s analysis,

firms are preparing for a rise in financial
crime, increasing their workforce, and
reevaluating their strategies for risk
management. Today’s economic
landscape is shaped by the trends that will
significantly impact obligated entities in
the year ahead.

The most notable change is the

criminalization of 'aiding and abetting' as an
offense. This is an effort to discourage the
development of the market for professional
money laundering services in the legal,
accounting, and professional services
sector, as well as the family members,
friends, and associates of criminals who
acted as proxies in sophisticated laundering
operations.

Any person or business that helps money

launderers hide funds could be found guilty
of money laundering. People in the industry
have questioned the practicality of 'aiding
and abetting,’ particularly regarding 'acts of
omission' or unintentional compliance
failures that allow criminals to launder funds. Geopolitics of Financial
This can be seen as both a criminal act and Crimes 2023
a regulatory breach that requires Source: Compliance Vision

enforcement action.

Download
More Insights for
Compliance Officers

Compliance, Sanctions
& Financial Crimes
Industry Trends 2023

According to Compliance Vision's

leadership survey, we are facing two
significant trends: on the one hand,
International Standards Setting Bodies
(ISSBs) are helping BFSI organizations
reduce financial markets fragmentation;
and on the other hand, we have local
requirements that are specific to particular
jurisdictions such as Asia-Pacific and the
Republic of China.

At Compliance Vision, many think that

companies are taking a more
comprehensive approach to financial crime
prevention to keep up with the changing
needs of their business. This includes
enhancing FRAML controls and utilizing new
technologies such as Artificial Intelligence
(AI). These systems are designed to
understand customer activity further and
streamline processes to manage financial
crime risk better. Furthermore, AI is utilized
for customer onboarding and AML
transaction monitoring tasks.

As companies use these new technologies,

they must also recognize the need to
instigate cultural and organizational
Compliance, Sanctions &
changes in their compliance departments. Financial Crimes Industry
Trends 2023
Cross-team collaboration, increased Source: Compliance Vision

flexibility, and a comprehensive

understanding of the risk landscape are all
necessary to ensure successful financial
crime prevention. Download
Leadership Programs

Compliance Officer
Leadership Program
2023
Become a team leader

Our Compliance Officer Leadership

Program was designed by compliance
officers, lawyers, and former supervisors to
help junior associates thrive in a
challenging work environment. This
Leadership Program will help compliance
officers of all fields understand the critical
success factors required to be identified as
a leader inside their organization.
Compliance Vision will help you thrive in a
complex work environment by helping you
understand what the necessary soft and
hard skills are:

• Sustainable finance - Build back better

after the Covid-10 pandemic respecting
new requirements for a Green New Deal
• The European Union (EU) Digital
Governance Act (DGA) Compliance Officer
• AML/CFT package: European Commission
(EC) sets goals for European Leadership Program 2023
91 slides – 1 Excel file U$D 199
harmonization, and the US releases a new
AML/CFT framework for FinTech
• Top priorities for aspiring Compliance
leaders in 2023
• 12 steps plan for new Compliance Officers
Download
• Timeline to prepare for leadership
• Auto-Evaluation guide
• Leadership smart planification
• Tips to Become the Next Team Leader
Leadership Programs

Chief Compliance
Officer Leadership
Program 2023
Build a more resilient future
for your organization

Our Chief Compliance Officer (CCO)

Leadership Program 2023-2024 will
be a key factor in your success
inside your organization. This
Leadership Program was designed
to give you unique insights into your
position. It aims to answer the
questions you wouldn’t ask your
colleagues and that trainers can
answer. The CCO Leadership
Program includes the following:

• 100 days Strategic Roadmap Chief Compliance Officer

• Comprehensive audit and Leadership Program 2023
processes 91 slides – 1 Excel file U$D 299

• Master internal policies and

processes
• Review Compliance training Download
• Set managerial goals
• Key regulatory requirements
• Models of Chief Compliance
Officer
• Use your skills
• Build an effective ESG Program
• Board Briefing Methodology
• Insights from Compliance Experts
Leadership Programs

Chief
Sustainability Officer
Leadership Program
2023
Managing global challenges
and building meaning inside
your organization

The Leadership Program aims to help Chief

Sustainability Officers (CSO) become
sustainability, Equity, and Inclusion
advocates inside and outside their
organization. For many years, CSO was
considered “good to have” and is now
considered a “must have” inside big
corporations. The current regulatory
framework in the US, the EU, and the UK
makes it clear to all stakeholders, investors,
and top management that corporations
must embrace a social role to create
performance. Chief Sustainability Officer
Leadership Program 2023
• ESG, DEI, circular economy, LOCAL Model, 91 slides – 1 Excel file U$D 299

Net Zero, and stakeholders’ expectations

• Master internal policies and processes
• Company Case study Download
• Set managerial goals
• Key regulatory requirements
• Take action through innovative
intrapreneurship
• Strategic role of the CSO
• Impact-weighted reporting
• Measuring change and performance
• KPIs shaping corporate action
Leadership Programs

Chief Diversity Officer

Leadership Program
2023
Building a meaningful
organization fighting
stereotypes

Our Compliance and Regulatory Experts

designed our Chief Diversity Officer (CDO)
Leadership Program 2023-2024 to help
CDOs build and manage Diversity, Equity,
and Inclusion Programs inside their
organization. This Leadership Program will
help you gain skills beyond knowledge
and enable you to make a clear
difference. At Compliance Vision, we have
noticed that the post-Covid-19 pandemic
workplace is searching for more
reckoning about inclusive leadership,
including gender, race, or ethnicity, in
high-level organizational positions.
Chief Diversity Officer
Leadership Program 2023
91 slides – 1 Excel file U$D 299
• Identifying DEI issues at the workplace
• Inclusive leadership
• CDOs: the difference between the US
and EU Download
• Beneficial inclusion
• Winning talent
• Improving the organization’s
performance
• Fighting injustice and improving
decision-making
• Auto-evaluation guide on pushbacks
and challenges
• Prepare a solid and transparent DEI
• Insights from Compliance and
Regulatory Experts
Leadership Programs

General Counsel
Leadership Program
2023
Building a more robust
organization using new challenges

Our Compliance and Regulatory Experts

designed our General Counsel (GC)
Leadership Program 2023-2024 to help GCs
manage their corporate legal mandate and
fulfill new responsibilities, such as heading
the organization's ESG, DEI, or
Compensation Programs. GCs have
become key advisors to the Board
members and help them build relationships
with outside stakeholders.

• Identifying legal issues at the workplace

• Legal leadership
• GC models in the US and the EU General Counsel
• Emerging risks such as ChatGPT Leadership Program 2023
• Legal technology trends impacting your 91 slides – 1 Excel file U$D 299
organization
• Global legal and compliance trends since
Russian Special Military Operation Download
• Think like a strategist delivering a
successful ESG Program
• Auto-evaluation guide on pushbacks and
challenges
• Prepare a solid Legal Program
• Insights from legal and compliance
experts
Compliance
Academy
A comprehensive regulatory
compliance retro-planning to
help you anticipate deadlines
In the opening months of 2022,
Compliance Vision interviewed over
200 C-suite and senior compliance
officers across Asia Pacific, North
America, and Europe before opening
its website and enabling potential
customers to access our services. The
respondents were from financial
institutions, private banking, fintech,
insurance organizations, and the
crypto ecosystem. Their answers
provided us with critical insights that
enable us to prepare efficiently our
Regulatory roadmaps, training,
strategic talking points, C-Level
assistance toolkits, and various other
products like regulatory benchmarks,
mapping, charts, and graphs designed
to provide outstanding solutions to
help your organization comply with
regulatory requirements.
Start preparing your Top priorities for
2024 is specifically designed to help
leaders of financial institutions to have
a comprehensive understanding of
issues and preferences that have
emerged or fallen in the past year
moving forward into 2023. Looking
back, 2022 has been a pivotal year
with the rise of the US-Russia
confrontation, the unfolding of the
Covid-19 pandemic restrictions and
political landscape, the limited
economic recovery, the new social
expectations, and the increasing
threats on European financial stability.
The post-pandemic world is facing
multiple threats that Compliance
Vision will help you spin
in opportunities despite many
challenges, such as regulatory-driven
financial market fragmentation,
deglobalization through sanctions
and embargos, cyberwarfare, the
rise of central bank digital currencies,
and increasing demand for ethical
behavior.
To help financial institutions leaders
and participants prepare for this
upcoming year of regulatory change,
the Compliance Vision, regulatory
compliance retro-planning, offers a
clear timeline of the announced
legislations and a training timeframe
highlighting their key points and
challenges. This will help market
players identify their Top priorities
and prepare promptly to stay on top
of the game and face regulatory
compliance challenges in 2024.
Global perspectives are uncertain,
and building resilience to confront the
current situation has become vital.
So, Compliance Academy will help
you organize your compliance teams
in troubled times.
Download Brochure
Ensuring
the Financial
Stability of the
European Union
Reform of bank crisis management and
deposit insurance regulatory framework
(CMDI)
On 18th April 2023, the European
Commission adopted a proposal “to
adjust and further strengthen the existing
EU bank crisis management and deposit
insurance (CMDI) framework.” The focus is
on mid-size and smaller banks. The
proposal aims to strengthen the Single
Resolution Mechanism (SRM) to build a
more complete banking union.
This proposal by the European
Commission follows the October 2017
communication from the Commission
Completing the Banking Union. The
European Commission has also recently
published its second single supervisory
mechanism report. The report concluded
that the Single Supervision Mechanism is
now a critical authority that can deliver
the objectives set out when it was created
in the post-2012 crisis era.
As the financial crisis evolved into the euro
area debt crisis, it became clear that
deeper integration in the banking system
was needed at that time for the countries
of the euro area, which are particularly
inter-connected. On that basis, the
European Commission Roadmap for
creating a banking union established a
Single Supervisory Mechanism (SSM) and
a Single Resolution Mechanism (SRM) for
banks.
The banking union only applies to
countries in the Euro area, although non-
euro area countries can also join and
participate. Currently, the banking union
has 21 members, including Bulgaria and
Croatia.
Compliance office
What is the reform of CMDI about?
The CMDI is a set of rules developed to
manage bank failures in an orderly
manner. It aims to protect financial
stability and depositors’ and taxpayers’
money. This framework is a part of the
banking union – SSM and SRM. So far, the
banking union has allowed the European
financial system to go through crises, such
as Covid-19 and the war in Ukraine. Today,
the financial institutions in the EU are well-
capitalized.
However, in recent years, smaller banks
have needed a harmonized resolution
framework. The CMDI reform is about
improving the crisis tools used to manage
the failure of medium-sized and smaller
banks. It will give resolution authorities
more effective powers to ensure that the
crisis doesn’t affect the financial stability
of the European Union and potentially all
other countries. The CMDI has three main
objectives:
• Preserve and protect financial stability
by not using taxpayer money: the
reform will use privately-funded deposit
guarantee schemes in crises to protect
depositors. Bank’s capital buffers will
continue to absorb losses; these
privately funded safety nets are
expected to reach EUR 55 Bn to 80 Bn
respectively by 2024 in the banking
union
• Protecting the real economy from
systemic risk: clients will be able to
easily retain access to their bank
accounts in resolution in case of a
transfer of their account to a new bank
• Protect and defend depositors with a
level of coverage of EUR 100.000 per
depositor and bank according to the
Deposit guarantee scheme directive for
all EU-eligible depositors. The new
framework includes additional
measures to harmonize the protection
of temporary high balances on bank
accounts over EUR 100.000
Ensuring
the Financial
Stability of the
European Union

Investment services and regulated

markets
Timeline
European Union (EU) laws aim to build
more efficient, resilient, and
transparent financial markets to reach 29 June 2023
high-level protection for investors.
Political agreement
Since 2004, the EU has progressively
between EU Parliament
implemented a comprehensive set of and European Council on
economic rules on investment services MiFiR
and activities according to the
following principles:
7 December 2022
• Fair
Capital Markets Union
• Integrated Legislative Package: clearing,
insolvency and listing
• Transparent package
• Efficient
18 October 2022
The legislative proposal
The financial rules that were highlighted at the State of
introduced in 2004 helped create a the Union Address
competitive European financial market
by imposing a single set of
25 November 2021
harmonized rules protecting investors.
Although, in 2008, it became clear that EU Commission adopted a
more robust and efficient laws were package to ensure data
needed to protect investors from access and new investment
financial instruments such as rules.
derivates, bonds, or even shares.
2 august 2021
Legislation MiFID II for new
29 June 2023: Political agreement organizational
reached between the European requirements
Parliament and the European Council
on the review of the Markets in
Financial Instruments Regulation 16 February 2021
(MiFiR)
Amendments to MiFID II on
This agreement was reached just product governance
months after the European requirements
Commission pushed new measures to
develop the EU’s Capital Markets Union
(CMU). This legislative package aims 24 July 2020
to make clearing rules more attractive
Coronavirus response for
and resilient, to harmonize corporate Europe’s recovery
insolvency rules across the EU, and to
ease the administrative burden for
companies of all sizes.

Compliance office
 Central Securities
Depositories
Regulation review
(CSDR)

28 June 2023

The European Union is proposing new legislation to

improve the safety and resilience of securities
settlement in Europe.
A post-trade flow of processes follows any
transaction in securities. These processes lead to
the settlement of the trade and the delivery of the
securities to the buyer against the cash to the
seller. This process depends mainly on the type of
securities, the type of trading venue, and the type
of market. CSDs operate the market infrastructure
that enables securities settlement systems
allowing the registration and safekeeping of the
securities, the settlement of the cash, track the
securities.
Article 75 of the CSDR required the European
Commission to prepare a report assessing the
implementation of the current legislation and the
way forward to its review by 19 September 2019. The
European Parliament also invited the European
Commission to review the settlement regime under
CSDR in the Brexit context. A consultation took place
in 2020 and 2021, and the European Commission
finally adopted a report which concluded that
CSDR is achieving its original objectives.
On 16 March 2022, the European Commission
adopted a legislative proposal to change CSRD to
enhance the efficiency of the EU’s settlement
markets for financial stability reasons.
On 28 June 2023, the European Commission
welcomed the political agreement reached
between the European Parliament and the
European Council on the March 2022 proposal to
review the CSRD improving cross-border
supervision for central securities depositories.

Source: European Commission

 Report on Money
Market Funds

20 July 2023

Regulation (EU) 2017/1131 on money market funds (MMF)

was introduced after the global financial crisis, exposing
specific financial market weaknesses and regulatory
regimes. Since entering into application in January 2019,
this Regulation has strengthened the regulatory
framework for MMFs in the EU, following
recommendations by the Financial Stability Board (FSB),
20 July 2023 the International Organization of Securities Commissions
EC adopted a report on (IOSCO), and the European Systemic Risk Board (ESRB).
the Money Market Funds The market stress related to the COVID-19 pandemic put
(MMF) the new regulatory regime to the test. The impact of this
test on MMFs differed across countries due to differences
in the structures of MMF markets and minor differences in
the regulatory framework for MMFs. The European Central
Bank (ECB) and the US Federal Reserve (FRB) took various
19 July 2023 measures to mitigate the effects, including outright
purchases of commercial papers on the primary and
Political agreement secondary markets, providing lending for many banks to
UCITS & AIFMD for buy assets from MMFs, and extending the eligible
investment funds collateral for refinancing operations to unsecured banks
bonds. These interventions improved liquidity and
confidence in short-term debt markets, which also
contributed to reducing the pace of redemptions from
MMFs.
24 May 2023 The MMF Regulation established a dedicated and
developed regulatory framework for MMFs in the EU. In
Retail investment particular, it aimed to address credit and liquidity risk
strategy, including challenges experienced by MMFs during the GFC crisis. By
amendments to the “harmonizing the essential product features that
PRIIPS regulation constituted an MMF, the regime also established a
uniform level of investor protection through liquidity and
liquidity risk management rules, including liquidity buffers,
assets in which MMFs can invest, diversification, valuation,
and internal credit quality assessment. It also enhanced
transparency towards investors and supervision,
including via comprehensive reporting to the National
competent authorities (NCAs)”.

Source: European Commission

 Political agreement on
the enhanced
regulatory framework
for investment funds

20 July 2023

The European Commission welcomes the

political agreement reached between the
European Parliament and the European
Council on the Commission's proposal to
improve the regulatory framework applicable
to the EU investment funds industry, which the
Commission adopted as part of the capital
20 July 2023 markets union (CMU) package of 25
EC adopted a report on
November 2021.
the Money Market Funds The new regulatory framework is amending
(MMF) the Directive on Undertaking for Collective
Investment in Transferable Securities (UCITS)
and the Alternative Investment Fund
Managers Directive (AIFMD). It covers funds
19 July 2023 that are easily accessible to retail investors
Political agreement and those which are designed primarily for
UCITS & AIFMD for professional investors, such as private equity
investment funds and hedge funds.
Investment products are complex. To protect
European investors, the EU has adopted a
regulation introducing a key information
24 May 2023 document (KID), a simple document giving
Retail investment
investors critical facts clearly and
strategy, including understandably. A KID is required for products
amendments to the including the following
PRIIPS regulation
• all types of investment funds
• private pensions
• insurance-based investments
• retail structured products

Source: European Commission

The European Digital Strategy
This section will explore how the global economy and the financial
instability have accelerated structural changes by reshaping the
regulatory landscape in order to adapt to global trends and events in
2022, including the inflation and monetary crisis in the eurozone, the
states of sanctions, the post-Covid-19 social expectations, the health
industry, cyber and financial crimes, the supply chain turbulence in a
world of shortages.

The global economic actors are facing an increasingly complex

regulatory landscape and have dedicated significant budgetary
resources in order to anticipate the rise of AI and algorithms, the
central bank digital currencies (CBDCs), and dealing in a world of
regulatory instability.

The Compliance Officer’s mission is to offer regulatory roadmaps and

tools for Global economics actors to tackle those organizational
changes. Some of the best lawyers and management
consultants have worked hand in hand to provide transformational
answers to complex organizations following regulatory requirements.

Digital Finance in the European Union Digital Finance package

Digital finance is the term market
participants use to describe the impact of
the latest technologies on the financial
services industry. It includes a large
number of new products, processes,
business models, and applications that
has a transformational impact on the way
regulated entities deliver financial
services.
These new technologies benefit both the
customers and the corporations enabling
technological breakthroughs to improve
access to financial services, offering more
choices, and increasing operational
efficiency and better operations. Digital
innovations in the financial services
industry also contribute to bringing down
national barriers and spurring competition
in areas such as
• Peer-to-peer lending
• Personal investment services
Based on a large public consultation, the
European Commission adopted on the
24th September 2020 a digital finance
package including a digital finance
strategy including proposals on crypto-
assets and digital resilience to boost the
competitiveness of the European financial
sector that gives consumers and investors
access to more innovation while ensuring
more protection and more financial
stability in the EU. The digital finance
package aims to help the EU as a global
digital player.
Digital Finance Strategy
The digital finance strategy sets out the
framework for regulating digital risks.
The Strategy sets out four ambitions:
• addressing fragmentation in the Digital
Single Market

• Online banking, online payments • Adapting the EU regulatory framework

services, and other transfer services to facilitate digital innovation

Compliance Vision experts have written a • Embracing a data-driven finance

study on how the investments made in the
2005-2015 years have substantially
increased the pace of technological
innovation. We have most of our banking
interactions with our online application.
We can transfer money through our online
bank. We can make investments using
new tools.
Social networks, machine learning,
artificial intelligence, mobile applications,
distributed ledger technology, cloud
computing, and big data analytics have
opened the way to new business models
and new market participants in the
financial markets.
• Enhancing digital operational resilience
of the financial system
Regulating crypto-assets
The European Commission proposed a
framework to regulate Crypto-assets
while allowing innovation and protecting
investors. Crypto-assets are digital
representations of values and rights,
which are transferred electronically and
that can be accessed through a key to
service. This could be designed as
financial instruments. The European
Commission differentiates between
crypto-assets already governed by EU
legislation and others that will remain
subject to existing legislation. This should
help market participants gain experience
with the use of DLTs exchanges.

Compliance office
The European
Digital Strategy
Regulatory framework for financial data
access
The European Commission adopted a
package modernizing payment services
and opening financial data on 28th June
2023, establishing an “Open Finance”
framework for responsible access to
individual and business customer data in
the European Union for an extensive range
of financial services.
The European Union adopted a new
regulatory framework for secure and open
access to customer data. This regulatory
framework protects consumers’ interests,
security, and competition at their center. In
recent years, new providers have entered
the payment services market, providing
“open banking” and “open finance”
services and changing the payments
services market. The European
Commission established a new regulatory
framework to enable new providers to
develop a clear set of rules. Most of those
solutions rely heavily on data users and
involve accessing data through secure
interfaces that data holders have put in
place for their newly acquired customers.
“Open banking” services were delivered
before the revised Payment Services
Directive (PSD).
In response to the latest developments,
the European Commission established a
revised regulatory framework to ensure
the European financial sector is fit for the
digital transformation era and can
mitigate risks on behalf of its customers.
The revised regulatory framework aims to
ensure that customers and service
providers provide additional tools to
protect personal data in line with the
General Data Protection Regulation
(GDPR).
Compliance office
Payment Services Directive 3 and
Payment Services Regulation
The European Commission provided a new
set of rules with the Financial data access
and payment package amending the
current Payment Services Directive 2,
which will become PSD3, and establishing,
in addition, a Payment Services Regulation
(PSR).
This new regulatory framework will ensure
that customers can safely use all “open
banking” and “open finance” services,
allowing them to make digital payments
online in the EU. The European Commission
is also considering a legislative proposal
for a framework for financial data access
in line with the GDPR.
The payment service market has changed
in recent years in the European Union.
Electronic payments have grossed
constantly, reaching EUR 240 trillion in
value in 2021 compared to EUR 184.2 trillion
in 2017. The Covid-19 pandemic
accelerated this trend. New providers
enabled new technology, and the “open
banking” services have securely shared
financial data between banks and
financial technology firms (fintech).
European Commission’s Retail Payments
Strategy of 2020
The Retail Payments Strategy aims to
establish an effective and efficient retail
payment system for a robust European
economy and to ease private individual
operations. Retail payments are vital for
digital innovation in financial services and
multiple developments (instant payments
and contactless). It’s an essential part of
the European Union’s Open Strategic
Autonomy to build a strong, resilient, and
open European financial system.
 Markets
in Crypto-assets
(MiCa)

29 June 2023

29 June 2023
Markets in Crypto-assets The European Union is establishing a comprehensive
Regulation (MiCa) came framework for crypto-assets and related services to
ensure the EU fits the digital era.
into force
Digital finance has a key role to play in the digital
finance age in shaping the future of the financial
markets and making it more efficient, robust,
9 June 2023 transparent, sustainable, and inclusive. This can lead to
innovative products and new services that can
Markets in Crypto-assets influence the current business models of the European
Regulation (MiCa) financial sector.
published in the Official
Journal of the EU Crypto-assets are a digital innovation that can easily
streamline capital-raising processes, enhance the level
of competition, and create more innovative platforms.
Crypto-assets are a representation of a right or a value
30 June 2022 that can be electronically transferred using a
distributed ledger technology (DLT). It can also be used
Political agreement as a means of payment.
between the European
The EU has adopted a comprehensive legislative
Parliament and the framework that regulates the issuing of crypto-assets
European Council on a as well as the services provided in respect of crypto-
regulatory framework assets.
for crypto-assets
The MiCA Regulation, therefore, will provide legal clarity
and certainty for crypto-asset issuers and providers.
The new rules will allow operators authorized in one
Member State to provide their services across the EU
24 September 2022
(“passporting”).
Digital Finance Package Safeguards include capital requirements, custody of
including: assets, a mandatory complaint holder procedure
available to investors, and investor rights against the
• Legislative proposals issuer. Issuers of significant asset-backed crypto assets
on crypto-assets (so-called global ‘ stablecoins ‘) would be subject to
(MiCa) more stringent requirements (e.g., in terms of capital,
investor rights, and supervision).
• Legislative proposals
for the EU regulatory
framework on digital
Source: European Commission
operational resilience
(DoRa)
 Single currency
package establishing
a framework for the
Digital Euro

28 June 2023

Digital Euro Package: what is it?

28 June 2023 The European Commission adopted the Single

The European
Commission adopted a
legislative proposal on a
digital euro for the EU
7 November 2022
High-level conference
European Commission
and ECB to establish the
legislative framework for
a digital euro
5 April 2022
The European
Commission launched a
targeted consultation
on a digital euro
Currency Package” on 28th June 2023 to ensure that
“individuals and businesses can continue to access
and pay with euro banknotes and coins across the
euro area, and to set out a framework for a possible
new digital form of the euro that the European
Central Bank (ECB) choose to issue in the future, as
a complement to cash” (European Commission).
In a recent survey published by the European
Commission, 60% of the people answered that they
would like to continue to have the option to use
cash, although many people choose to pay digitally.
To address this new trend, the European
Commission proposed the digital Euro Package. The
package includes a framework for a possible digital
euro. It would be a complement to euro banknotes
and coins. It also includes a legislative proposal on
the legal tender of euro cash to safeguard the role
of cash and ensure it will stay a widely accepted
means of payment across the euro area.

The digital euro could support the European Union’s

12 October 2020
Consultation of the ECB.
The ECB launched a
consultation on a digital
euro
digital finance and retail payments strategies. This
legislative proposal contributes to financial inclusion
and aims to preserve vulnerable groups who rely on
cash, such as the elderly or lower incomes groups
with less digital skills.
The digital euro will make digital payments in the
euro area a reality. It will offer more choices for
consumers.

Source: European Commission

 Electronic
Identification (eID)
for a Safer European
Union
28 June 2023
End 2025
The European Commission
set to release the first
nationwide wallets
available for citizens
April 2025
The Pilot project for an
EU Digital Identity Wallet
will end their phasing
test
Autumn 2023
The European
Commission wants the
following to be
available:
• Technical
specifications for the
Wallet
• First version of the Eu
Digital Identity Wallet
prototype on Github
April 2023
First pilot projects will
start their devlopment
Digital Euro Package: what is it?
eID is being promoted by the European
Commission as one of the tools to ensure secure
access to online services and to carry out
electronic transactions in a safer way. A secure eID
is an essential aspect of the daily of citizens in the
European Union. It can be used to book airplane or
train tickets, check your emails, confirm an online
payment transaction, or even unlock phones. The
Covid-19 pandemic has highlighted the
importance of delivering a secure eID in the EU.
For now, there is no standard legal background in
the Eu to have all member States accepting an eID
in each country. There isn’t enough cross-border
interoperability of national schemes preventing
citizens from benefiting from a fully EU-integrated
solution.
The European Commission published a key
document, “Communication 2030 Digital Compass:
The European Way for the Digital Decade”. This
communication lays out the European
Commission's plan to deliver, by 2030, a fully
integrated and interoperable eID all across the Eu.
European citizens can access electronic medical
records, share personal data, and confirm online
transactions. The Electronic Identification
Authentication and Trust Services (eIDAS)
Regulation provides the everyday basis for cross-
border identification within the EU. Already 60% of
European citizens can access EIDAS services. The
European Commission also includes eDelivery,
eSignature, and eID services. The European Digital
Identity will be available to every European citizen
by 2030. It will be used widely and controlled by
users inside their EU Digital Identity Wallet
Source: European Commission
Sustainable Finance
This section will explore how the global economy and financial
instability have accelerated structural changes by reshaping the
regulatory landscape for more sustainability. The European
Sustainable Finance Package lays out an agenda for a more robust
European economy, taking into consideration climate change and
new social expectations.

Sustainable Finance Package

Timeline
The Sustainable Finance Package
establishes a European Union sustainable
finance agenda to help the financial 13 June 2023
sector by encouraging private funding of
green transition projects and new Sustainable finance package is
technologies fostering sustainable published by the European
investments. Commission
The European Commission added new
activities to the EU Taxonomy and a new
set of rules for environmental, Social, and 27 August 2021
Governance (ESG) rating providers, which
will help increase transparency on the The EC publishes a study on
market for sustainable investments. The ESG factors in the EU Banking
Sustainable Finance Package establishes prudential framework
a regulatory framework for companies
that wish to invest in their transition to 6 July 2021
sustainability and contribute to the
European Green Deal objectives. The European Commission
Regulatory framework on the publishes a strategy for
transparency of ESG rating activities financing the green transition
ESG ratings play an essential role in the EU
sustainable finance market as they help 21 April 2021
investors and financial institutions to
manage vital business decisions such as The EC publishes the
risk management or investment sustainable finance package
strategies. The current ESG rating market measures
needs more transparency, and the
European Commission proposes a
Regulation to increase ESG rating reliability
and transparency. According to the 1 October 2020
proposal for a Regulation on the
transparency and integrity of ESG rating Expert Group on the EU
activities, ESG rating providers will be Platform on Sustainable
authorized and supervised by the Finance
European Securities and Market
Authorities (ESMA).
8 April 2020
EU Taxonomy Delegated Acts
Consultation on a renewed
The Eu Taxonomy is an essential piece of sustainable finance strategy
the Sustainable Finance package. It’s a
framework of market transparency tool to
help investments for a green transition.
10 December 2019
The EC and the EIB jointly
organized Financing the Paris
Agreement

Compliance office
 Corporate
Sustainability
Reporting
9 June 2023
9 June 2023
European sustainability
reporting standards
(ESRS)
5 January 2023
The Corporate
Sustainability Reporting
Directive (CSRD)
entered into force
14 December 2022
Publication of the
Corporate Sustainability
Reporting Directive
(CSRD)
23 November 2022
EFRAC publishes the first
set of EU sustainability
reporting standards
22 June 2022
Political agreement by
the EU Parliament and
the European Council on
the Corporate
Sustainability Reporting
Directive (CSRD)
Corporate Sustainability Reporting Directive
(CSRD)
According to EU rules, large corporations and
listed companies must publish regular reports on
the social and environmental risks they face in
their activities and how they may impact people
and the environment.
Eu law requires to disclose such information to
help investors, civil society, organizations, and
stakeholders to evaluate the sustainability
performance of European companies. It’s part of
the European Green Deal. On 5 January 2023, the
Corporate Sustainability Reporting Directive
(CSRD) entered into force. The new directive
updated the rules regarding the social and
environmental data corporations must report.
The new rules require approximately 50 000
corporations to disclose their environmental risks.
The first companies will have to apply the new
rules for the first time in the 2024 financial year
for reports to be published in 2025. Corporations
subject to CSRD must report according to
European Sustainability Reporting Standards
(ESRS).
The ESRS standards are developed by the EFRAG,
a group of European experts considering
technical advice. They are an independent body
bringing together different stakeholders. On 6th
June 2023, the European Commission opened a
four-week feedback period on the first set of
sustainability reporting standards for European
corporations. The CSRD requires companies to
have an audit of the sustainability information
that they report.
Source: European Commission
 Sustainable Finance
Disclosure Regulation

17 February 2023

17 February 2023
Requirements apply on
20 February 2023
In January 2021, less than eight weeks before the
New amendments first March 2021 SFDR implementation deadline, the
require financial ESAs wrote to the Commission highlighting several
markets participants to important areas of uncertainty in the interpretation
disclose the extent to of SFDR that needed urgent clarification and with
which their portfolios which firms had been struggling. In July, the
are exposed to energy Commission published its long-awaited Q&A,
activities to comply with which is helpful in some areas, but in others,
the Taxonomy as repeats the ESAs' questions or cites sections of the
required by the SFDR text without providing clarification on
Complementary interpretation or practical implementation. In brief:
Climate Delegated Act
(CDA) 1. SFDR provisions don't apply to non-EU AIFMs (but
product disclosures may apply if funds are
EBA, EIOPA and ESMA marketed in the EU), but they need to be registered
provide a template (i.e., sub-threshold) AIFMs
under SFDR
requirements for 2. The headcount is linked to the parent
financial products undertaking being a “financial market participant”
requirements (FMP) under SFDR. If it is, any subsidiaries beneath
it are caught. If it is not, its headcount is not
included. Instead, the headcount is focused on the
25 July 2022 employees of the subsidiary undertaking that is the
FMP.
Requirements apply
on 1 January 2023 3. Integration of sustainability risks (per SFDR Article
2(22)) is not sufficient for Article 8 to apply.
Delegated regulation
to explain the 4. Article 9 products may invest in a wide range of
methodology and underlying assets, provided they qualify as
presentation to be sustainable investments under SFDR Article 2(17).
disclosed To meet prudential, product-related sector-
specific rules requirements, an Article 9 product
may include assets for certain specific purposes,
10 March 2021 such as hedging or liquidity.

Sustainable Finance 5. Confidentiality and data protection

Disclosure Regulation requirements under EU and national laws owed to
comes into application the individual client may prevail over the need to
disclose information under SFDR Article 10 on a
public part of the FMP's website.
25 May 2018
European Commission Source: European Commission
proposal on sustainable
finance disclosure
regulation
Financial Crimes
This section will explore the new EU legal framework on Anti-Money
Laundering and Countering the Financing of Terrorism (AML/CFT).
The latest EU AML/CFT package introduces:
• The EU Single Rulebook Regulation
• The AMLD6
• The establishment of the new AMLA
EU Legal Framework on Anti-Money
Laundering and Countering the
Financing of Terrorism
The AML/CFT landscape in the EU will
continue to progress, with major
changes expected in 2023. The most
significant change on the horizon is
the potential adoption of four
legislative proposals that would
strengthen AML/CFT regulations within
the region. Central among the
proposals is creating a new anti-
money laundering authority (AMLA)
that will oversee AML/CFT efforts
across the entire EU bloc. In addition to
national regulators, the AMLA will
directly supervise certain obliged
entities that are high-risk or that
handle cross-border transactions. It
will also have the ability to impose
higher fines.
The current expectation is that the
AMLA will be established by the end of
2025 and begin direct supervision in
early 2026. When asked which area(s)
of AML regulation need to be
strengthened, Europe was the only
region where “larger fines for AML
violations” was the most popular
answer, by a margin of eight
percentage points. This indicates at
least some degree of alignment with
the objectives set out for the EU’s new
AMLA.
On 28th March 2023, the European
Parliament has adopted in the ECON
Committee new measures against
AMLCFT. The package consists of:
• The EU Single Rulebook regulation
• The 6th AMLD
• The regulation establishing the EU
AMLA
Compliance office
The new proposals will ease
compliance for companies in the EU.
Cross-border EU corporations that fall
under the new Anti-Money Laundering
Authority (AMLA) direct supervision will
benefit from having a single
supervisor. The EU corporations that do
not fall under the direct supervision of
the MLA will benefit from more
harmonized rules with less
fragmentation.
The AMLA will mostly have two areas of
activity: supervising and supporting
the EU Financial Intelligence Units
(FIUs). The new AMLA should have
around 250 staff members.
EU-wide cooperation on Know Your
Customer (KYC)
The European Commission is currently
organizing meetings with a group of
Experts on eID and remote KYC
processes that brings both private and
public experts together to explore all
the issues relating to electronic
identification and the EU Digital
Identification Wallet to integrate this
with remote KYC processes. This group
provides expertise to the European
Commission.
The AML Package is currently under
political negotiations at the European
Parliament.
 High-risk
countries

17 May 2023

On 17 May 2023, the European Commission adopted a new

Delegated Regulation about high-risk third countries with vital
deficiencies in their AML/CFT regimes that pose significant threats
to the European financial system (high-risk third countries).
Identifying such countries is a legal requirement from Article 9 of
Directive (EU) 2015/849 (4th anti-money laundering Directive) to
comply with the European AML regulatory framework. It aims at
protecting the European Union’s financial system.
The European Commission has recently published a revised
methodology for identifying high-risk third countries. This
methodology ensures that an objective and transparent process
is applied to the high-risk countries’ review. Once identified, the
Commission adopts delegated acts listing these jurisdictions.
The methodology laid out by the European Commission uses the
following approach:
• identify the risk profile and the level of threat to which the
country is exposed
• assess the legal framework and its practical application in 8
key areas (AML framework, CDD, exact requirements in the
non-financial sector, dissuasive sanctions, jurisdiction of
national authorities, international cooperation, exchange of
information, implementation of targeted sanctions).
The following countries have been identified as high-risk
jurisdictions in 2023: The Democratic Republic of the Congo,
Gibraltar, Mozambique, Nigeria, South Africa, Tanzania, and the
United Arab Emirates.

Source: European Commission

Disclaimer: This is for general information only. The information presented does not constitute legal advice.
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