apcc-london-forum-presentation

Report
APCC London Regional
Forum
• Monday, 16th June 2014
Agenda
•
13.00 – 13.30
Registration, tea and coffee
•
13.30 – 13.40
Welcome and introduction - Kevin Parkinson, Director of the APCC
•
13.40 – 14.20
View for the Regulator - Rob Grupetta - a member of the FCA's Financial Crime Dept will provide an update on the
latest views and issues that are impacting on the Regulator. This is your opportunity to learn about what challenges the Regulator and the
wider financial services industry are facing daily in the fight against financial crime.
•
•
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•
14.20– 15.00
Gordon Findlay FCA - A BRAW and regulatory review update –
Upcoming regions
- Provide some updates, further ion our thematic work and perhaps some other topical/supervisory updates
- Reflect on the last year of FCA/APCC cooperation
- A preview of next Positive Compliance Workshops
•
15.00 - 15.20 Coffee break
•
15.20 - 15.50 - What to look for when undertaking an audit - Is there merit in following the tried and tested audit methodology? Stuart
Carson LLP will provide an insight into the approach adopted for a recent audit in light of recent shifts in the financial crime arena,
particularly Cyber Crime, and the questions that Senior Management and NEDs should be asking MLROs to ensure that the business is
protected.
•
15.50 - 16.30
Irwin Mitchell, Financial Crime Lawyers - Hear the latest developments from one of the City's leading financial crime
law firms. With a national Investigations and Prosecutions team, they will provide a specialist overview of cases of companies and
individuals who are either at risk of or are under investigation by the FCA's Enforcement or Supervision Divisions for alleged breaches of
the FCA's Financial Crime rules and regulations in .
•
16.30 – 17.00
APCC update and open forum - Your chance to discuss the issues that are concerning you, share industry best
practice and learn how the APCC Financial Crime working group can help you.
APCC June Southern Regional Forum
Financial crime – view from the regulator
Rob Gruppetta
Manager, Financial Crime Specialist Supervision
Financial Crime & Intelligence Department
16 June 2014
3
A view from the regulator
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Role of the FCA
•
Expectations on regulated firms
•
Systematic Anti-Money Laundering Programme
•
Trade finance thematic work
•
Current areas of focus
•
Questions
4
Role of the regulator - framework
•
FCA legal duty
•
Financial crime: money laundering, terrorist financing,
bribery & corruption, data security, sanctions & fraud
•
FCA Handbook – SYSC
•
Money Laundering Regulations 2007
5
The FCA - new style of regulation
• Forward looking
• Judgement based decisions
• Early intervention
6
Expectations on regulated firms
• Adequacy of controls and resources
• Applying the spirit of the risk-based
approach
• Board and senior management
engagement
• Individual accountability
7
AML supervision and compliance
•
Systematic AML Programme
─ Deep dives on AML, counter terrorist financing, and financial
sanctions
─ 14 major retail and investment banks
•
Thematic work
─ Trade finance
─ Asset management
•
Poor AML compliance is a matter of concern
─ Poor controls and questionable judgements over high risk customers
and PEPs
─ Assurance too focused on process, not risk
•
Enforcement
8
Areas of focus – current thematic work
•
ABC systems and controls in smaller commercial
insurance brokers
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AML and sanctions systems and controls in smaller banks
9
Areas of focus – trends and emerging risks
•
E-money issuers
•
Cybercrime
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MSBs
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Digital currencies
10
Areas of focus – future work
•
Consumer credit
•
Financial crime supervisory approach
•
FATF Mutual Evaluation of UK
•
Whistleblowing
11
Questions?
12
Gordon Findlay
FCA Update
Areas to cover
• BRAW/Regulatory reviews
• RDR
-Cycle 2 results
-Cycle 3 thematic work
• Positive Compliance
• 12 months of APCC/FCA
14
BRAW/Regulatory reviews
Current region – Wales & Severn
• Reg reviews – July
• Follow up work - January
Next region – Eastern region
• Postcodes: CB,CO,CM,IP,NR,SS,SG
• BRAW sessions – September
• Reg reviews – October/November
• Follow up work – May 2015
Online reviews
• West Midlands region online reviews part of this region
• Remaining regions face to face/online to run concurrently
15
RDR
• Thematic findings for cycle 2 work now
published
• Cycle 3 to begin July 2014 – findings
around Q1 2015
• Template published to assist firms
16
Positive Compliance
•
•
•
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Topics: RDR & CIPS
Why RDR & CIPs?
Starting August 2014
Covering all UK
Open to both regulated and compliance
firms
17
Last 12 months of FCA/APCC
•
•
•
•
Day in life of compliance consultant
Authorisations meetings/event
Clive Adamson speech at annual conference
Annual conference ‘launch’ for RDR cycle 2 independence
findings – Rory Percival
• Discussions with FCA on various topics from non advised
to reg reviews (GI)
• Recognition of ‘working group’ approach
• Chairman's lunch in Manchester July 2014
18
Planning Financial Crime Compliance
• Compliance with Regulations/FCA/JMLSG/FATF/etc.
• Appointment and role of the right MLRO
• Client Due Diligence – Question the standard & issues
• Level of Training – Induction & Ongoing
• Record Keeping – All Decisions or some
• Financial Crime Warning Signs – recognised
• Reporting Systems – Internal /External
• Compliance Plan
• Monitoring system and reporting
• Communicating Policies and Guidance (Intranet)
Financial Crime Reviews Include
•
Management Support AML/CTF Compliance Policy – Review evidence
•
Risk Assessment – H/M Reviews Documented; Approved – Test
•
Training Programme – Targeted and Delivery Methods – Content
•
CDD - Whole area; explained; communicated; followed
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Enhanced and simplified CDD – As above
•
PEP Policy and Sanctions programmes - As above
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Recognising Suspicious Transactions – Test
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Reporting
•
Records and Documenting Decisions – All of above
•
Monitoring – Plan/Reports/Remediation
 Your Recommendations – Case Study
We know
• High on FCA agenda
• Issues regular guidance on expectations Financial
Crime A Guide for Firms
• Regularly take enforcement action – successfully
• Repeatedly fine individuals and firms plus
remediation
We Risk
•
•
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Enforcement action or legal consequences
Reputation
Management time and cost of remediation
Disruption to business and affect on morale
So how do we achieve a good state of
compliance without losing business?
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New Financial Crime Policy – Highlights
Board approval and accept responsibility
Communicate throughout Client X with board support
Introduce Targeted Training for key staff
Train employees in Branches
New process for Partners/Introducers
Questions for board to ask
•
•
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Reduce Risks
Enforcement action or legal consequences
Reputation
Management time and cost of remediation
Disruption to business and affect on morale
•
What is new?
New Financial Crime Policy
•
Compliant with FCA; Money Laundering Regulations and POCA/TA
•
Determines course of actions to ensure KYC/CDD at outset – in London and branches
•
Recruited, trained and managed in AML/CTF risks – Financial Crime Team
•
Train employees in all Branches
•
FCT and MLRO demonstrate ownership – Train, Monitor, Guidance, Update, Report.
Your Role – (the Board)
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Continue to develop culture
•
Question MLRO; MI and Reports
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Review and approve Policies
•
Require FCT Monitoring Reports and Compliance Audits to review
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Annual MLRO Report
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What has changed?
Financial Crime Policy
Updated High Risk Countries and Excluded List
Politically Exposed Persons (PEPs) Policy
Sanctions Screening
Better use of World-Check; Experian and Media
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To be delivered
FCT Training and Professional Development
Financial Crime Compliance Plan
Financial Crime Monitoring Plan
Integrating Compliance within Branches
Appoint MLRO with oversight - senior, vision and find a way approach
Ensure systems and controls develop to support compliance with AML/CTF Policy
Embed within business
Train in requirements imposed on employees – Targeted training and relevant to their
work
Develop and reinforce a culture of compliance
•
Complete Review
Open Forum
• Update on APCC
• Open Forum
• Close

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