Three key areas that banks need to be aware of 2021

The Swedish Financial Supervisory Authority (SFSA) has, in addition to European Central Bank’s supervisory areas, decided to focus on consumer protection within advisory services and financial product sales, including both securities and insurance policies. The SFSA will look more closely into whether these institutions are working in the best interest of the customer and are not offering products or services that simply provide the most profits for the firm.

We have analyzed ECB’s latest supervisory priorities and divided them into three key areas that banks need to be aware of and fully prepared for in 2021; Credit Risk Management, IT and Cyber Risks, and Climate-related Risks.

In terms of money laundering and countering financing of terrorism, SFSA has found that criminals are seeking new channels to launder their money as the major banks tighten their controls. They will, therefore, look more closely at smaller banks and payment service firms and determine whether the work by the said firms is sufficiently methodical and structured to prevent money laundering and the financing of terrorism.

Click here for a complete breakdown of the 2021 supervisory priorities and see how they have been impacted by COVID-19.

Find the full set of Sweden's financial supervisory authority’s prioritized areas in 2021 here.