Major global IT outage highlights critical importance of operational resilience; UK regulators seek feedback on Big Tech digital wallets & more

Good morning. I hope you had a good weekend.

In this edition of RegTech X Weekly, the crucial lessons learned from the most recent global IT outages and systems failures are explored among other news and updates.

Last week, reports of a widespread computer problem that knocked out, took most of the world's infrastructure offline, emerged on Friday, July 19. Cybersecurity experts said that Microsoft outage is a timely reminder for companies to put operational resiliency at the heart of their strategies. The incident highlighted the importance of regulatory measures like the Digital Operational Resilience Act (DORA), and the imperative of modernising outdated infrastructures.

As global outages hit banking firms and payments worldwide, are we to be forever doomed by glitches, power outages and cyberattacks? Possible solutions may exist, but what are they?

In order to help organisations implement the Digital Operational Resilience Act (DORA), the European Supervisory Authorities (ESAs) - the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPSA), and the European Security and Markets Authority (ESMA) - conducted a public consultation on the second batch of policy mandates under the Digital Operational Resilience Act (DORA), the results of which were published on July 17, 2024.

The European Banking Authority (EBA) also launched a consultation on draft Guidelines for reporting requirements under MiCA (or as the EBA website mentioned, MiCAR) to ensure authorities have necessary information for compliance supervision and significance assessments. Consultation ends on 15 October 2024.

Meanwhile, UK regulators are calling for feedback on the benefits and risks digital wallets from Big Tech giants such as Apple and Google bring to people and businesses.

In the US, the Federal Reserve (FED) has fined Green Dot $44 million for "numerous" unfair and deceptive practices in the marketing, selling and servicing of its prepaid cards and its tax return preparation payment services.

In Asia, the Monetary Authority of Singapore (MAS) has committed an additional S$100million to support the development of quantum and artificial intelligence (AI) technologies in the financial sector.

Money launderers are increasingly using cryptocurrencies to conceal the origins and movement of illegally-obtained funds,?according to a report by Chainalysis.

Another new survey - from Deloitte - showed that a notable 74% of companies are poised to invest in advanced technologies and tools to enhance their ESG disclosure capabilities within the next year.

Corporate Compliance Insights is conducting independent research and encourages all compliance professionals to participate in an anonymous survey "Compliance Officer Mental Health, Stress, and Working Conditions."

Access additional industry news links in the complete RegTech X Weekly edition by Evgeny Likhoded & Anna Antimiichuk. Sign up to receive it directly in your inbox ??: https://bit.ly/3QzCRoX

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