Financial Crime World

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Saint Pierre and Miquelon Tightens Banking Regulations to Combat Financial Crime

In an effort to combat financial crime and fraud, Saint Pierre and Miquelon is strengthening its banking regulations. This move comes as regulators worldwide grapple with the evolving risks posed by technological advancements, geopolitical events, and interconnected financial networks.

Regulatory Challenges of 2023

According to a report by KPMG, the key regulatory challenges of 2023 include:

  • Anti-money laundering and counter-terrorism financing frameworks
  • Fraud models
  • Insider corruption
  • Cybercrime
  • Sanctions compliance

In addition, regulators will focus on combating the growing threat of cryptocurrency-related fraud and expanding regulations to include non-fungible tokens (NFTs) and decentralized finance (DeFi) platforms.

Consumer Protection and Risk Management

Saint Pierre and Miquelon’s regulators will place increased attention on consumer protection, ensuring that financial institutions adequately protect vulnerable populations such as the elderly and low-income individuals from fraudulent activities. Regulators will also assess companies’ use of:

  • Account holds and freezes
  • Payment sender/receiver authentication procedures
  • Oversight of synthetic identity fraud

Effective Governance

The report highlights the importance of effective governance in managing fraud and financial crime risks. Companies are expected to enhance their risk and compliance frameworks for effective oversight and governance, including anti-bribery and corruption measures.

Mitigating Risks

To mitigate these risks, KPMG recommends that fintech and payments companies:

  • Responsibly leverage technology and data to monitor activity
  • Focus on customer experience
  • Eliminate antiquated technology
  • Establish a mature conduct risk program
  • Strengthen controls in regulatory focal areas

Accessing the Report

The report is available for download, providing client perspectives, regulatory recaps, and actionable steps to help mitigate risk.

Authors

  • Fiachre O’Neill, Chief Risk & Compliance Officer, PayPal
  • Amy S. Matsuo, Principal, U.S. Regulatory Insights & Compliance Transformation Lead, KPMG LLP
  • John Caruso, Principal, Forensic, KPMG US