Polling questions results Correspondent Banking (CB) 1 Which - PowerPoint PPT Presentation

Polling questions – results Correspondent Banking (CB) 1

Which region has seen the greatest withdrawal of CB relationships? 35 30 25 20 15 10 5 0 Africa (30%) Caribbean (20%) Europe (30%) Middle East (20%) Decline of Correspondent Banking by region (by percentage) 2

What is the main reason for CB relationship withdrawal? 80 70 60 50 40 30 20 10 0 AML risk (6%) Relationships not profitable Unable to conduct Profitable BUT not worth (11%) adequate KYC (17%) the effort (67%) Reason(s) for withdrawal of CB relationships (by percentage) 3

Is the trend of withdrawing from CB relationships a good thing? 45 40 35 30 25 20 15 10 5 0 Y - rationalises bank's portfolio Y - helps to identify AML risks N- forces countries to use alt. N - negative effect and (20%) (7%) channels (33%) encourages terrorism-related activities (40%) Withdrawal from CB relationships - good? (by percentage) 4

Polling questions – results Transaction Monitoring (TM) 5

Do you have effective measures in place that allow you to understand the performance of your existing TM system? 90 80 70 60 50 40 30 20 10 0 Yes (17%) No (83%) Effective measures to understand TM system performance 6

Does your organisation have measures to allow it to better understand the performance of its existing AML TM systems? 90 80 70 60 50 40 30 20 10 0 Yes (17%) No (83%) Measures to assess AML TM performance 7

Does your organisation adopt a pragmatic approach towards the review and improvement of its existing AML TM systems? 100 90 80 70 60 50 40 30 20 10 0 Yes (14%) No (86%) Extent to which pragmatic review and improvement of TM system undertaken 8

In terms of transaction monitoring, does your organisation complete regular analysis of scenario performance? 100 90 80 70 60 50 40 30 20 10 0 Yes (14%) No (86%) Analysis of scenarios used 9

Polling questions – results CDD on third parties 10

How concerned are you about identifying the UBOs of existing third party relationships? 60 50 40 30 20 10 0 Yes - Extremely (25%) Yes - Very (50%) Partly (25%) No concern (0%) ID of existing third party's UBOs 11

What does your organisation use to identify third party UBOs? 50 45 40 35 30 25 20 15 10 5 0 Limited manual process (43%) Process being defined (14%) Process being improved (14%) Process integrated across 3rd party networks (29%) ID of existing third party's UBOs 12

Polling questions – results Overview – various AML matters 13

Top area of financial crime that your organisation is focused on? 45 40 35 30 25 20 15 10 5 0 CDD/KYC remediation Sanctions effectiveness Implementing risk-based Implementating cultural Financial intelligence (42%) (19%) approach (23%) change (12%) (4%) Current areas of focus 14

Top thing that would help your organisation to increase effectiveness of information sharing (internal/external)? 50 45 40 35 30 25 20 15 10 5 0 Industrial standard More Greater reciprocity (14%) Change to laws (e.g. Data Internal systems to support protocols/formats (33%) resources/management Protection) (43%) sharing (7%) priority (2%) Measures that would assist with information sharing (internal and external) 15

Extent your organisation is open to innovation within compliance? 60 50 40 30 20 10 0 Very open to lead with Open minded - but not Not open to innovation innovation (26%) as first movers in the (18%) market (56%) Appetite for innovation in compliance 16

Extent your organisation has integrated AML/Fraud/Cyber Security detection process? 70 60 50 40 30 20 10 0 Intra-instututional (0%) Cross-institutional Public-Private (0%) Transnational (30%) Other (60%) (10%) Nature and extent of integration 17

In terms of Cyber Crime, what are the greatest regulator and reputational risks for your organisation? 45 40 35 30 25 20 15 10 5 0 Compromise of Compromise of Compromise of Compromise of customer environments customer accounts suppliers (13%) internal computer (9%) (39%) systems (39%) Greatest cyber-crime related risks 18

What are the greatest areas of weakness that increase the risk of cyber threats? 70 60 50 40 30 20 10 0 Human factors (60%) Email compromise Infrastructure and Computing Physical security (17%) connectivity (14%) environment (6%) controls (3%) Factors that increase cyber threat vulnerability 19

Should tax and law enforcement authorities have fewer or greater powers to tackle tax evasion? 80 70 60 50 40 30 20 10 0 More powers (70%) Current powers Fewer powers (15%) sufficient (15%) Powers of authorities to tackle evasion 20

The Panama Papers caused my financial institution to… 60 50 40 30 20 10 0 Scour customer records Re-evaluate policies and Nothing - reliance on for name matches (56%) then scour customer third party vendors (16%) data (28%) Response to Panama Papers 21

In your opinion, is CDD getting easier or harder? 100 90 80 70 60 50 40 30 20 10 0 Easier (10%) Harder (90%) CDD activities 22

What does your organisation spend most of its time on when performing CDD? 70 60 50 40 30 20 10 0 Collection (63%) Analysis (25%) Decisions (13%) CDD activities 23