2nd Annual AML Summit 2018February 7, 2018

Dhaka, Bangladesh

Agenda

Welcome AddressShirish Pathak, Managing Director, Fintelekt Advisory Services

Inaugural AddressDebaprasad Debnath, Consultant, Bangladesh Financial Intelligence

Unit (BFIU)

Uncovering Sanctions Risk in Trade Finance TransactionsPiyush Chawla, Head of Sales, South Asia, Accuity

Top 5 KYC/AML Issues Facing Financial InstitutionsSanjay Sah, Senior Sales Specialist - Risk, Thomson Reuters

Effective AML ComplianceRohan Langley, Senior Solutions Architect, SAS Security Intelligence

Practice

The Role of UBO in TBML and & Sanctions ComplianceAbhishek Jain, Consultant, Bureau van Dijk, a Moody’s Analytics

company

Need for Artificial Intelligence and Machine Learning in AML Akshay Chopra, Director - Strategic Initiatives, Jocata Financial

Advisory & Technology

Panel Discussion: AML/CFT Trends and Priorities

Moderator:

Arpita Bedekar, Research Director, Fintelekt Advisory Services

Panelists:

Swapan K Biswas, Senior Executive Vice President & CAMLCO, Mutual

Trust Bank

Chowdhury MAQ Sarwar, Consultant, Islami Bank Bangladesh &

Country Representative, Fintelekt

Major General Sheikh MD Monirul Islam, ndc.psc (retd), Chief External

& Corporate Affairs Officer, bKash

Participation

25%

23%

19%

7%

7%

19%

DESIGNATIONS

AVP/VP CAMLCO D-CAMLCO

DGM/GM DMD/MD PO/Manager

AB Bank Meghna Bank

Agrani Bank Mercantile Bank

Al-Arafah Islami Bank Midland Bank

Bangladesh Financial Intelligence Unit Mutual Trust Bank

Bank Asia NCC Bank

BASIC Bank NRB Bank

bKash NRB Commercial Bank

BRAC Bank NRB Global Bank

Dhaka Bank Prime Bank

Dutch Bangla bank Pubali Bank

Eastern Bank Rupali Bank

First Security Islami Bank Shahjalal Islami Bank

Global IME Bank Social Islami Bank

ICB Islamic Bank South East Bank

IDLC Finance Standard Bank

Islami Bank Bangladesh State Bank of India,Bangladesh

Jamuna Bank Trust Bank

Janata Bank United Commercial Bank

ORGANISATIONS

Welcome AddressShirish Pathak,Managing Director, Fintelekt Advisory Services

On the one hand, banks have to put in place internal processes and systems around AML frameworks, budgets, KYC, transactions monitoring, screening, reporting, training. If these are not in place, the bank is at grave risk and is also contributing to the country risk.

On the other hand, compliance officers have to continue to expand and deepen their domain knowledge in areas such as TBML, remittances, narcotics, smuggling, terrorist financing techniques, human trafficking, virtual currencies, dual use goods and other areas. By being better prepared to manage these risks, a compliance officer can contribute to the sustainability of the bank.

For FIUs and regulatory authorities, it is important to scale up the regulatory technology backbone to improve speed of processing information received from reporting entities and timely dissemination of analysis to law enforcement. Also required are sharp enough teeth to regulatory authorities for levying penalties so that banks take their responsibilities really seriously.

Keynote AddressDebaprasad Debnath,Consultant, Bangladesh Financial Intelligence Unit

The region is a destination and trans-shipment point for illegal drugs and smuggling of goods and gold smuggling remains a key risk along with human trafficking

ML/TF challenges in Bangladesh stem from a pre-dominantly cash-based economy, increase in cyber-crime, use of alternative remittance systems, trade-based money laundering (TBML) and criminal activities such as drug trafficking

Bangladesh has made important progress with preventive measures for the financial sector and DNFBPs and has applied significant resources to raise ROs' awareness of their AML/CFT obligations.

ROs have made progress in moving to a risk-based approach (RBA) implementation of preventive measures and rules-based implementation has deepened.

Continued implementation challenges include lack of enforcement, capacity constraints, and the need for coordination across jurisdictions.

Uncovering Sanctions Risk in Trade Finance TransactionsPiyush ChawlaHead of Sales, South Asia, Accuity

Expect increased enforcement from regulators on

sanctions compliance

Sanctions risks in a trade finance transaction are unique

and complex

Mitigation of sanctions risk in trade finance requires a

specialized screening solution approach

Policies, procedures and training, specifically for trade

finance need to be in place

Compliance and trade operations need to and are

coming together

Top 5 KYC/AML Issues Facing Financial InstitutionsSanjay SahSenior Sales Specialist - Risk, Thomson Reuters

Despite dramatic increase in headcount and spend, KYC

resources remain the biggest challenges for Fis

Despite continued investment, onboarding times are still

rising

Many FIs have not implemented all the requirements for

ongoing KYC checks

A mixed approach to regulatory changes indicates that

many FIs lack clear plan

FIs have continued to increase their expenditure more

than the average compared to 2016

Effective AML ComplianceRohan LangleySenior Solutions Architect, SAS Security Intelligence Practice

Banks as well as regulators are under pressure due to rapid changes and new concerns due to an increased focus on compliance

Key takeaways for compliance from global best practices are to implement a culture of compliance, adopt a risk-based approach, document and verify, and to get external validation of processes and systems

An AML and CDD system need to be able to quickly comply with rapidly changing regulations. Further they should have the ability to optimize existing AML alerting systems to target a reduction in workload and increased efficiency.

The Role of Ultimate Beneficial Ownership in TBML & Sanctions ComplianceAbhishek JainConsultant, Bureau van Dijk, a Moody’s Analytics company

Limited access to global ownership data in Sanction

programs have created unknow and risky sanctions

exposure

Global ownership can only be certain if the data source

captures ownership across every country and companies

of all sizes

Automated data process based on multiple sources is

crucial to detect ownership changes as and when they

occur.

Need for Artificial Intelligence and Machine Learning in AMLAkshay ChopraDirector - Strategic Initiatives, Jocata Financial Advisory & Technology

There is a growing awareness that rules alone are often not sufficient to detect money laundering cases, and regulators have started pressuring banks to adopt sophisticated analytics in their workflows.

Rules-based systems typically generate large amounts of false positives. Further, rules reflect past expert knowledge but may not surface sophisticated new money laundering schemes designed to circumvent the rules in place.

With the rise of computing power and new analytical techniques, banks can now extract deeper and more valuable insights from their ever-growing mountains of data using advanced analytical techniques at an industrial scale.

Panel Discussion: AML/CFT Trends and Priorities

Swapan K Biswas

The progress of Bangladesh on AML compliance has been commendable. The banking industry is working in line with the latest circular from the BFIU, which has issued very robust guidelines. Compliance Officers’ association is in the process of being formed, which will play a greater role in future to counter AML challenges.

Chowdhury MAQ Sarwar

Tone from the top is critical. AML training for top management and board of directors is very important, as the latest BFIU circular puts accountability on the Board for AML failures.

Major General Sheikh MD Monirul Islam

KYC for mobile payment providers is challenging due to the segment in which we are operating. There is a need to build a culture of compliance within the organisation and make the business side understand the importance of AML compliance.

From L to R: Arpita Bedekar, Fintelekt Advisory Services,Swapan K Biswas, Mutual Trust Bank, Chowdhury MAQSarwar, Islami Bank Bangladesh & Fintelekt, MajorGeneral Sheikh MD Monirul Islam, ndc.psc (retd), bKash

For more details contact us

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Tel: +91 20 6510 9070 Email: contact@fintelekt.com