BRUSSELS, Belgium—Representatives from the European Union and the U.S., including officials from the Treasury Department, Federal Reserve Board, CFTC, FDIC, SEC, and OCC, recently participated in the U.S. – EU Joint Financial Regulatory Forum as part of efforts to continue an ongoing financial regulatory dialogue.
Matters discussed focused on six different themes: market developments and current assessment of financial stability risks, sustainable finance, multilateral and bilateral engagement in banking and insurance, regulatory and supervisory cooperation in capital markets, financial innovation, and anti-money laundering and countering the financing of terrorism (AML/CFT), Buckley reported.
While acknowledging that both the E.U. and U.S. are experiencing “robust economic recoveries,” participants cautioned that the uncertainty around the COVID-19 pandemic and the economic outlook has not dissipated. “Cooperative international engagement to mitigate financial stability risks remains essential,” participants warned.
Other Issues Explored
Participants also explored issues concerning climate-related challenges for the financial sector and mandates for addressing climate-related financial risks, and touched upon the E.U.’s strategy for financing its transition to a sustainable economy.
Regarding financial innovation, participants discussed potential central bank digital currencies and exchanged views on topics such as new types of digital payments, crypto-assets, and stablecoins, with all participants recognizing the “benefits of greater international supervisory cooperation” and “promoting responsible innovation globally,” Buckley said.
AML/CFT Frameworks
In addition, participants discussed progress made in strengthening their respective AML/CFT frameworks, exchanged views on the opportunities and challenges arising from financial innovation in the AML/CFT area and explored potential areas for enhanced cooperation to combat money laundering and terrorist financing bilaterally and in the framework of the Financial Action Task Force.