Exploring the relationship between AML & Fraud Hosted by: - - PowerPoint PPT Presentation
Exploring the relationship between AML & Fraud Hosted by: Jesse Hopkins, CeFPro Presenters: Kevin Lindsay, Sumitomo Mitsui Banking Corporation Europe Larry Potter, Starling Bank Meet the Webinar presenters Kevin Lindsay Larry Potter
Hosted by: Jesse Hopkins, CeFPro Presenters: Kevin Lindsay, Sumitomo Mitsui Banking Corporation Europe Larry Potter, Starling Bank
Kevin Lindsay Deputy Head of Financial Crime Group SMBC Europe Larry Potter Head of Compliance and MLRO Starling Bank
Larry Potter, Chief Risk Officer
www.smbcgroup.com Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
www.smbcgroup.com
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Background
SMBCE was established in March 2003 and is a wholly-
corporate activities carrying out the majority of its activities in Europe, the Middle East and Africa.
Ownership SMBC 100% (UK incorporated subsidiary of SMBC) Head office 99 Queen Victoria Street, London, EC4V 4EH, United Kingdom Number of employees 990 Network 6 branches: Paris, Milan, Amsterdam, Dublin, Prague and Madrid
SMBC is a top-tier Japanese bank, which maintains relationships with over 103,000 companies in Japan. The history of the Sumitomo and Mitsui companies date back more than four centuries, and both were founded as banks in the nineteenth century. SMBC’s predecessor banks, Mitsui Bank was founded in July 1876 inTokyo, and Sumitomo Bank in 1895 in Osaka. SMBC was established in 2001 following the merger of the two leading banks: Sakura, formerly Mitsui Taiyo Kobe; and Sumitomo.
Head office 1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan Number of employees 29,283 Network 440 domestic branches (Japan) (excluding sub-branches and agencies) 18 overseas branches (excluding sub-branches and representative offices)
www.smbcgroup.com
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AML & Fraud
All Financial Institutions are committed to preventing financial crime and to consistently applying the letter and spirit of applicable laws to prevent fraud all areas of their operations. Fraud is an act of deception intended for personal gain or to cause a loss to another party. Fraud can be both financial and non financial and does not need to have a cash element to it. Fraud can cause significant financial loss and can have a detrimental effect on the reputation of an organisation. Fraud can be split into two types: Internal Fraud Internal fraud, or fraud committed by Employees of the Bank, can have a serious impact on both financial standing and
limited to: Ø Falsifying expense claims; Ø Concealment of adverse information; Ø Alteration or forging of documents and/or instructions; Ø Misuse of confidential information (including insider trading); Ø Relationships with third parties that are not open and transparent; Ø Theft (of cash, assets or information); and Ø Tax evasion and facilitation of tax evasion. Controls The key to managing internal fraud, is to embed appropriate controls into day to day activities to limit the potential of fraud taking place. However, the bigger the Bank the greater the risk of internal fraud taking place: Ø Tone from the top; Ø Training; Ø Appropriate escalation / whistleblowing; Ø 4-eye process for key roles / activities; and Ø Appropriate monitoring of key tasks.
www.smbcgroup.com
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AML & Fraud
External Fraud External fraud is unauthorised activity by a Third Party from
the Bank can be unknowingly used as a conduit for fraudulent activity and/or become a victim. Examples of external fraud include, but are not limited to: Ø Fraudulent or misrepresented documents are supplied by a Customer or Third Party; Ø Online systems are compromised by hacking, phishing or malware; Ø Abuse of Bank products or property by Customer or Third Party; Ø Customer is impersonated by a Third Party to access funds or information; Ø Impersonation of the Bank to dupe Customers or Third Parties; Ø Customer is targeted by fraudsters and instructs the Bank to pay away funds; and Ø Tax evasion and facilitation of tax evasion. Controls The key to managing internal fraud, is to embed appropriate controls into day to day activities to limit the potential of fraud taking place. However, the bigger the Bank the greater the risk of internal fraud taking place: Ø Strong due diligence, understand the activities of the customer, their normal transactions, activities and their customers; Ø Understanding the fraud risk of the products made available by the Bank; Ø Detailed internal risk assessments; Ø Allocating our resources to the areas of highest risk; Ø Horizon scanning of current threats; Ø Education and training of staff; and Ø Educating customers on fraud trends and how to protect themselves.
Assessing the interaction and convergence between fraud and financial crime for effective monitoring, detection and prevention. Hear insight from senior fraud experts from leading FI’s such as: European Banking Authority, Lloyds Banking Group, UBS, HSBC and more. View full speaker line-up and agenda at www.cefpro.com/ffce
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