FinTech Global FS Regulatory Round-up - w/e 12 June 2026

Global

FSB consultation report: Sound Practices for Responsible Adoption of AI

The Financial Stability Board (FSB) has published a consultation report: Sound Practices for Responsible Adoption of Artificial Intelligence (AI). The sound practices focus on AI-specific aspects and risks that are relevant to financial institutions and financial stability. The FSB has identified 12 sound practices to help financial institutions responsibly adopt AI, covering:

• organisation-wide AI governance (sound practices 1 to 4);
• the management and mitigation of AI risks through the different stages of AI development and deployment (sound practices 5 to 10); and
• the management of AI-related cyber, information and communication technology, and third-party risks (sound practices 11 and 12).

While not yet finalised, the FSB says that it ‘strongly encourages’ the boards and senior management of firms to reference this toolkit as they consider business strategy, technology adoption, and risk management in an increasingly AI enabled environment. The sound practices are not intended to establish an international standard, to impose a prescriptive approach for responsible AI adoption by financial institutions, nor to influence business decisions in adopting a certain AI technology. They are also not developed to address recent risks that have emerged related to frontier AI models, although some sound practices would help financial institutions respond to such risks.

Responses are requested by 22 July 2026. The final report will be published in October 2026. [10 Jun 2026] #AI

UK

FCA updates operational resilience webpage to include section on frontier AI

The FCA has updated its operational resilience webpage to include a section on frontier AI. The section includes: FCA publications and statements; guidance and resources from UK authorities and partners; and international developments. [12 Jun 2026] #AI

FCA: Plans for engagement with the Market Practitioner Panel in 2026/27

The FCA has published the letter, from Chair Ashley Alder and CEO Nikhil Rathi, to the Chair of the Markets Practitioner Panel, Claire Woodman. The letter sets out areas for prioritising engagement with the panel over the coming year, including, among others: global developments in relation to stablecoins and digital assets, and feedback on how the UK framework should develop. [11 Jun 2026] #Stablecoins #DigitalAssets

FCA publishes Emerging Technology Horizon Scan 2026

The FCA has published its Emerging Technology Horizon Scan 2026 – a first-of-its-kind publication from the regulator. Prepared by the FCA’s Emerging Tech and Research Team, the paper sets out three plausible ways emerging technologies could combine to create new outcomes for consumers, firms and markets. It also highlights early signals of new risks these technologies may enable. The paper highlights four ‘key trends’:

• accelerating convergence of technology creates new opportunities and risks;
• personalised intelligence has the capacity, as it develops and is adopted, to substantially change how individuals interact with firms which could be empowering, but autonomy, digital exclusion and consumer protection require consideration;
• synthetic crime is evolving at pace, presenting new forms of fraud and deception; and
• programmable finance could support growth by reshaping financial infrastructure and enabling new markets. [10 Jun 2026] #AI #DLT #Tokensiation #CBDC #Stablecoins

HM Government’s engagement with financial services sector on development of Digital ID

In a press release regarding the formation of an independent advisory group to support the delivery of Digital ID, it was noted that the HM Government will commence a process of regular engagement with the digital verification services and financial services sectors in June. The aim of this engagement will be to ensure lessons and insights from these sectors can inform the Digital ID programme as it develops. This will involve close partnership with leading trade organisations to ensure a wide representation of participation. [10 Jun 2026] #DigitalID

SI: The Money Laundering and Terrorist Financing (Amendment) Regulations 2026

The Money Laundering and Terrorist Financing (Amendment) Regulations 2026 have been made. These Regulations amend the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. This statutory instrument (SI) is accompanied by an explanatory note.

Among other things, this SI is intended to strengthen the regime for cryptoasset businesses, including change in control provisions, and align these arrangements with the new financial services regulatory regime for cryptoassets. [10 Jun 2026] #Crypto

Chancellor addresses AI Adoption Summit

HM Treasury has published Chancellor Rachel Reeves’ speech at the AI Adoption Summit. As the Chancellor outlined the potential impact of AI on UK growth, she identified that adopting AI was ‘where the biggest gains lie’, and stated that she wanted the UK to be ‘the fastest adopter of AI in the G7’.  Among the takeaways from the speech are:

• both the recently operational Sovereign AI Unit and the British Business Bank are making investments in AI technology;
• the Financial Services AI Adoption Plan, developed by HM Government’s AI Champions in liaison with industry, will be published alongside the Chancellor’s Mansion House address on 14 July;
• the advisory AI Growth Lab was launched and will bring together regulators to provide practical guidance on how existing rules apply in an AI context – the initial focus will be on legal services;
• to facilitate the UK leading on agentic payments, the UK’s payments infrastructure is being upgraded to support digital money, regulation is being modernized and innovators are being supported to safety test and scale;
• the FCA has received a record number of applications for the second supercharged AI sandbox cohort;
• a £400m fund is in place to equip the UK’s next national AI supercomputer with next generation chips, and the tender process for the new national supercomputer in Edinburgh will be launched soon;
• the AI Economics Institute has been launched as a joint research organization of HM Treasury and the Department for Science, Innovation and Technology (DSIT);
• noting the challenges AI brings to cyber security, HM Government is ‘supporting innovative, British designed cyber secure chips’ and will publish a National Cyber Action plan later in June.

HM Treasury and DSIT have published a voluntary agreement by organisations to share data and insights with the government’s AI Economics Institute, on how they use AI.  There is also a policy paper introducing the institute and a prospectus which sets out how the AI Economics Institute will deliver its research through two core functions: building and analysing the evidence base to understand AI’s economic effects; and developing models and scenarios to inform resilient, future facing policy making. [9 Jun 2026] #AI

Hong Kong

Bank Indonesia, HKMA and People’s Bank of China sign MoU to promote bilateral transactions in IDR and CNH between Indonesia and Hong Kong

Bank Indonesia, the HKMA and the People’s Bank of China have signed a memorandum of understanding (MoU) to establish a cooperation framework to promote bilateral transactions in Indonesian Rupiah (IDR) and offshore Chinese Renminbi (CNH) between Indonesia and Hong Kong.

A bilateral currency transaction framework will be implemented under the MoU to facilitate the direct exchange and settlement of IDR and CNH in cross-border trade and investment activities among corporates and institutions in Indonesia and Hong Kong.  This initiative is designed to enhance the efficiency of cross-border transactions, while promoting greater use of regional currencies.

Bank Indonesia and the HKMA will lead the preparatory work for the framework, including developing comprehensive operational guidelines.  They will also identify and appoint selected banks in Indonesia and Hong Kong as appointed cross currency dealers to participate in the framework.  Further details on operational procedures, timelines and participating banks are expected to be announced later this year.  [11 Jun 2026] #Payments

Singapore

MAS consults on amendments to notices on technology risk management

The Monetary Authority of Singapore (MAS) has published a consultation on proposed amendments to its notices on technology risk management. The changes seek to reinforce the importance of the stipulated risk management measures and strengthen financial institutions’ technology resilience. The amendments cover key areas such as IT asset management, IT risk assessment and monitoring, change management controls, and data backup and recovery.

Responses are requested by 31 July 2026.  [10 Jun 2026] #OperationalResilience

India

IFSCA: FAQs on FinTech Sandbox Framework 2026

The International Financial Services Centres Authority (IFSCA) has published answers to frequently asked questions (FAQs) relating to the 2026 FinTech Sandbox Framework.  [10 Jun 2026] #FinTechSandboxFramework

US

OCC Comptroller Gould testifies before House Financial Services Committee on agency priorities

Comptroller Jonathan V. Gould has testified before the U.S. House of Representatives Committee on Financial Services about the current priorities and activities of the Office of the Comptroller of the Currency (OCC). The testimony addressed five broad themes:

• On risk management, the Comptroller argued that post-2008 regulation sought to eliminate rather than manage risk, driving financial activity into less regulated parts of the economy and contributing to a decline of 50 percent in the number of banks with assets below $1 billion.
• On de novo bank formation, he stated that the OCC received as many new charter applications in 2025 as in the previous four years combined. The agency conditionally approved 10 new banks this year, and saw a full-service national bank open for the first time in five years.
• On supervision, the Comptroller said that the OCC is returning to risk-based supervision grounded in examiner judgement rather than "arbitrary checklists," and is reviewing past supervisory criticisms and enforcement actions against its standard for material financial risk.
• On responsible innovation, he highlighted that the OCC is working to finalise its GENIUS Act stablecoin proposal, framing it as a means of ensuring appropriate consumer protections for stablecoin users across OCC-supervised institutions.

On debanking, the OCC is investigating complaints of alleged debanking. [Jun 4, 2026] #Stablecoins #GENIUSAct