Latest Insights

Anti-money laundering and transaction monitoring in times of a pandemic

The fight against money laundering (ML) and terrorist financing contributes to global security, the integrity of the financial system and sustainable growth. In recent years, banks have been under more supervisory scrutiny when it comes to the detection and prevention of financial crime. Financial institutions have therefore stepped up their measures against fraud, money laundering, terrorist financing and other forms of financial crime. In this fight, transaction monitoring is a crucial tool to detect unusual transactions and patterns.

Average Rate FX Forwards and their processing in SAP

Zanders add-on for SAP TRM

An Average Rate FX Forward (ARF) can be a very efficient hedging instrument when the business margin needs to be protected. It allows the buyer to hedge the outright rate in a similar way as with a regular forward. However, as the cash settlement amount is calculated against the average of spot rates observed over an extended period, the volatility of the pay-out is much reduced.

Liquidity Risk Management for Insurers

Latest insurance sector regulatory developments with increased attention on liquidity risk management

Supervision of insurers has so far focused mainly on solvency. There has been less focus on liquidity risk, which is generally not seen as a material risk for insurers, given the characteristics of traditional (life) insurers.

IFRS 17 – EU ignoring annual cohorts?

Potential inconsistency between group and local reporting for international insurers

IFRS 17 has been a long time in the making. One of its most controversial aspects discussed this year is the annual cohorts requirement. On the one hand, the IASB hopes to shed light onto possible onerous insurance contract generations. On the other hand, most of the insurance industry argues that the requirement is against the basic principle of sharing the risk among contracts and essentially their business model. Meanwhile, the European Financial Reporting Advisory Group (EFRAG) is divided in forming an opinion on this matter.

A new milestone on the IBOR reform road

ISDA Fallbacks Supplement and Protocol

On 23 October 2020, the International Swaps and Derivatives Association (ISDA) launched the IBOR Fallbacks Supplement to the 2006 ISDA Definitions and the ISDA 2020 IBOR Fallbacks Protocol. The supplement and the amendments resulting from the protocol will take effect on 25 January 2021.