How to Implement a Risk-Based Framework to AML and CFT

Monday 28 June 2010

New Threats and Evolving Standards

Key elements of an AML &CFT framework
Speaker to be confirmed

Regulation varies from country to country due to differences in the national legal framework and in the regulator’s powers, duties and the constraints it faces. Yet all regulators have to commit to a professional approach – to transparency, objectivity, a methodical approach, strong technical knowledge, continuous learning and high standards. In this session, led by an experienced former regulator who recently published a report for HM Treasury on offshore financial centres, discussion will focus on the core elements in AML/CFT regulation and the latest thinking on their implementation.

Identifying and tackling new threats in: VAT carousel fraud, trade-based ML and misuse of corporate vehicles
Bill Cleghorn, Kinetic Partners LLP

Recent FATF reports have identified new areas of concern for policymakers. Studies have highlighted where vulnerabilities and threats lie, and this session, in the form of panel discussion, draws on industry and regulatory experience to address how authorities can put in place frameworks to tackle these. In particular, the panel will address how regulators can look to obtain more information about new channels being used to launder funds, drawing on examples from a variety of jurisdictions.

Introduction: towards a risk-based approach
Speaker to be confirmed

In this session, discussion will focus on the new demands facing regulators and central banks in implementing a risk-based approach to anti money laundering and combating the financing of terrorism (AML and CFT) in light of the G20 statements and recent FATF reports.

Tuesday 29 June 2010

Priorities and Challenges in Implementation

Priorities of the FATF
Maria Célia Ramos, Legal Officer and Head of Delegation to FATF, Bank of Portugal (invited)

Financial market authorities around the world are all aware of the challenges and responsibilities imposed on them by revised FATF standards. Yet beyond the standards, work in the taskforce is laying the groundwork for standards and, ultimately, regulations of the future. Recent initiatives have included examination of risks in securities and life insurance sectors as well as renewed emphasis on the importance of transparency. This session will consider the FATF’s priorities for 2010, against the backdrop of the 4th round of evaluations, and discuss how these will impact regulation in the coming years.

How to engage the private sector
Sally Scutt, Deputy Chief Executive, British Bankers Association

What is the role of the private sector in developing rules? This session will focus on examples of where the private sector can provide added value in devising workable proportionate rules, commenting on new initiatives and working in partnership with regulatory and supervisory authorities. The speaker, from the British Bankers Association, will discuss the work of the Joint Money Laundering Steering Group, trade-associations based group, in providing practical assistance in interpreting regulations and spreading good practice in countering money laundering.

Wire transfers: protecting the payment system
Tina Blocksidge, Nominated Officer, Group Operations, Lloyds Banking Group

The vulnerabilities of domestic and cross-border wire transfers to money laundering and terrorist financing have been acknowledged by the international community in a series of increasingly arduous recommendations and guidance. Yet striving to trace all wire transfers and minimise thresholds place considerable burdens on regulators and the financial system itself. Moreover, the process of designating and withholding a payment deemed to be suspicious can place the financial agents in complex legal and client-relation situations. A number of recent high-profile cases involving cover payments have highlighted the potential for abuse and this session looks at how regulators and those in the markets can work to combat this.

A case-study of Portugal’s AML framework
Maria Célia Ramos (invited)

Creating an effective framework for combating money laundering means coordinating groups within and across industries. With different interests, this presents particular challenges for a regulator. The speaker, from a regulator in the European Union, will discuss the roles played across the range of authorities within financial markets and law enforcement, and, importantly, how they can work together to present a united front in the fight against financial crime.

Extraterritorial implications for regulators
Kern Alexander, Judge Institute, Cambridge University

Following the terrorist attacks in America, the US administration placed efforts to deny funds to terrorists, and prevent money laundering, at the top of its agenda. The PATRIOT Act provides US authorities with substantial new powers to regulate the global activities of multinational banks. A number of high-profile cases have seen these powers now invoked around the world with assets seized and regulators placed under pressure to comply. This session, led by a leading expert in extraterritoriality, will consider the consequences for regulators worldwide of these significant legislative developments.

Wednesday 30 June 2010

Risk and Responses

Politically exposed persons: rules and reality
Tim Daniel, Partner, Edwards Angell Palmer & Dodge (invited)

Combating money laundering and the financing of terrorism requires that regulatory authorities compile and keep up-to-date lists of suspicious persons and organisations. FATF recommendations require supervisors to pay particular attention to “politically exposed persons” (PEPs, ie, high-risk individuals who may be conduits for looted funds). This session, which draws on a case-study from the speaker, will consider the challenges of preventative action, as well as issues surrounding international organisations, domestic PEPs, data collection, prosecution and asset recovery.

Asset Freezing
Charles Proctor, Partner, Bird & Bird

Best-practice AML – a bank’s perspective
Speaker to be confirmed

Modern, global banks face immense regulatory and reputational risk in connection with money laundering. In response, they have allocated substantial resources to anti-money-laundering controls, and have also developed risk-based approaches to deploying these resources. This session will offer delegates a “risk manager’s eye view” of how international banks in practice build defences against money laundering, the implications of regulatory requirements and how the actions of regulators can help or hinder the banks in these efforts.

Thursday 1 July 2010

Preparing for Evaluation

Demonstrating success
Speaker to be confirmed

Today, financial supervisors themselves are expected to submit to evaluation by international examiners. Such evaluations now focus not only on the financial regulatory regime in general, but specifically on how well the regime works to combat money laundering and terrorist financing. How are these evaluations conducted, and what do supervisors need to understand about the evaluation process? How can financial market authorities best cooperate with this scrutiny to achieve the most positive outcome? This session takes a comprehensive approach to look at how authorities can best prepare for, and get the most from, an external assessment.

Effective evaluation preparation
Speaker to be confirmed

This session builds on the earlier session to look at how supervisors and regulators can take to prepare for, undertake and respond to an evaluation. A series of case-study scenarios will draw out concrete steps authorities can take. The workshop draws on the presenters’ experience of being evaluated as well as evaluating.

Priorities and action plans
Led by chairman

In the final session, delegates will reflect on lessons learnt and identify priorities for action at national and international levels. This provides a chance for delegates to share views and experiences gained during the four days of the course and draw conclusions and action plans which they can take back to their home institution.