Isra-Mart S.R.L. :EU states agree new security measures to tackle ETS fraud

www.isra-mart.com

The new ­security measures include a 26-trading-hour delay before transactions can go through (except­ for transactions between “trusted accounts”), stricter ­permit ownership rules and “out-of-band” confirmation of transfers, which will require a second secure channel, such as a telephone call, to confirm a sale.

The International Emissions Trading Association welcomed the move, but was scathing about the European Commission’s decision to remove serial numbers from allowances, despite warnings­ that this could hamper due diligence on the provenance of carbon credits.

Previous money laundering was only discovered after individual traders spotted the same serial numbers repeatedly crossing their desks.