This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious




OCC Head Outlines Need For Close Supervision In Electronic Banking Sector

Caroline Maxwell, Tax-news.com, London

12 February 2001

John D. Hawke, Jr. Chairman of the Basel Committee on Bank Supervision's Electronic Banking Group, announced this week that the EBG would be developing principles to guide cross border co-operation among bank supervisors.

The EBG's concerns parallel those of the FATF, who are anxious that the near-anonymity of the electronic medium will make it easier for criminals to move money around unnoticed. The Group is also worried that the increasing freedom to carry out banking activity from anywhere in the world will intensify the legal 'headache' of investigating suspicious activities.

Mr Hawke, who is also the US Comptroller of the Currency, stated this week that: 'We know that if e-banking is to proceed relatively unimpeded and deliver the benefits we anticipate, host country supervisors will need to achieve a high level of comfort with home country supervision.' However, he continued by acknowledging that the new laws and regulations on e-banking in each country in which it is conducted could impose a heavy burden on innovation.

According to Mr Hawke, the forthcoming report will outline global e-banking risks, and set forth risk management principles, focussing on areas such as global consolidated supervision, contact and information exchange with host country supervisory authorities, and supervision of local operations of foreign banks.

The Electronic Banking Group, whose members comprise 17 central banks and bank agencies from the G-10 countries, along with observers from the European Central Bank, the European Commission, and bank supervisors from Australia, Hong Kong and Singapore, is meeting in Paris this week.

.

 

 






Write a comment