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Regulatory Environment and Corporate Governance Structure of LLB AG

LLB AG, a financial institution based in Liechtenstein, operates within a complex regulatory environment. This article provides an overview of the key points related to its regulatory framework, sustainability and environmental, social, and governance (ESG) considerations, and key objectives.

Regulatory Framework

The bank is subject to supervision by the Liechtenstein Financial Market Authority (FMA), which has implemented measures to mitigate systemic risks. Some key aspects of the regulatory framework include:

  • Supervision: LLB AG is supervised by the FMA.
  • Deposit Guarantee and Investor Compensation Foundation (EAS): The bank has joined the EAS, which provides protection for depositors in case of a bank failure.
  • Resolution Authority: The FMA has established an operationally independent organizational unit to act as a resolution authority.
  • Bank Recovery and Resolution Directive (BRRD): The BRRD was transposed into Liechtenstein law through the Recovery and Resolution Act (RRA), providing a statutory mechanism for resolving systemically important banks.

Sustainability and Environmental, Social, and Governance (ESG) Considerations

As a financial institution operating within the European Union, LLB AG is affected by various EU regulations aimed at promoting sustainable development. Some key ESG considerations include:

  • EU Regulations: The bank is subject to regulations such as the Sustainable Finance Disclosure Regulation (SFDR), Taxonomy Regulation, Corporate Sustainability Reporting Directive (CSRD), and delegated regulations related to MiFID II, product monitoring, AIFM, and UCITS.
  • ESG Compliance: LLB AG has expanded its Group Corporate Compliance department to include a Senior Compliance Officer focusing on ESG compliance.

Key Objectives

LLB AG aims to integrate sustainability aspects into its risk management and client advisory services. Some key objectives include:

  • Integrating Sustainability: To incorporate sustainability considerations into risk management and client advisory services.
  • Supporting Legislative Efforts: To support the efforts of legislators in creating relevant standards and transparency requirements for sustainable finance.