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?

2 5 10 15 20 25 30 35

Africa (30%) Caribbean (20%) Europe (30%) Middle East (20%) Decline of Correspondent Banking by region (by percentage)

What is the main reason for CB relationship withdrawal?

3 10 20 30 40 50 60 70 80

AML risk (6%) Relationships not profitable (11%) Unable to conduct adequate KYC (17%) Profitable BUT not worth the effort (67%) Reason(s) for withdrawal of CB relationships (by percentage)

Is the trend of withdrawing from CB relationships a good thing?

4 5 10 15 20 25 30 35 40 45

Y - rationalises bank's portfolio (20%) Y - helps to identify AML risks (7%) N- forces countries to use alt. channels (33%) N - negative effect and encourages terrorism-related activities (40%)

Withdrawal from CB relationships - good? (by percentage)

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?

6 10 20 30 40 50 60 70 80 90

Yes (17%) No (83%)

Effective measures to understand TM system performance

Does your organisation have measures to allow it to better understand the performance of its existing AML TM systems?

7 10 20 30 40 50 60 70 80 90

Yes (17%) No (83%)

Measures to assess AML TM performance

Does your organisation adopt a pragmatic approach towards the review and improvement of its existing AML TM systems?

8 10 20 30 40 50 60 70 80 90 100

Yes (14%) No (86%)

Extent to which pragmatic review and improvement of TM system undertaken

In terms of transaction monitoring, does your organisation complete regular analysis of scenario performance?

9 10 20 30 40 50 60 70 80 90 100

Yes (14%) No (86%)

Analysis of scenarios used

Polling questions – results CDD on third parties

10

How concerned are you about identifying the UBOs of existing third party relationships?

11 10 20 30 40 50 60

Yes - Extremely (25%) Yes - Very (50%) Partly (25%) No concern (0%)

ID of existing third party's UBOs

What does your organisation use to identify third party UBOs?

12 5 10 15 20 25 30 35 40 45 50

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

Polling questions – results Overview – various AML matters

13

Top area of financial crime that your organisation is focused on?

14 5 10 15 20 25 30 35 40 45

CDD/KYC remediation (42%) Sanctions effectiveness (19%) Implementing risk-based approach (23%) Implementating cultural change (12%) Financial intelligence (4%)

Current areas of focus

Top thing that would help your organisation to increase effectiveness of information sharing (internal/external)?

15 5 10 15 20 25 30 35 40 45 50 Industrial standard protocols/formats (33%) More resources/management priority (2%) Greater reciprocity (14%) Change to laws (e.g. Data Protection) (43%) Internal systems to support sharing (7%)

Measures that would assist with information sharing (internal and external)

Extent your organisation is open to innovation within compliance?

16 10 20 30 40 50 60

Very open to lead with innovation (26%) Open minded - but not as first movers in the market (56%) Not open to innovation (18%)

Appetite for innovation in compliance

Extent your organisation has integrated AML/Fraud/Cyber Security detection process?

17 10 20 30 40 50 60 70

Intra-instututional (0%) Cross-institutional (10%) Public-Private (0%) Transnational (30%) Other (60%)

Nature and extent of integration

In terms of Cyber Crime, what are the greatest regulator and reputational risks for your organisation?

18 5 10 15 20 25 30 35 40 45

Compromise of customer environments (9%) Compromise of customer accounts (39%) Compromise of suppliers (13%) Compromise of internal computer systems (39%)

Greatest cyber-crime related risks

What are the greatest areas of weakness that increase the risk of cyber threats?

19 10 20 30 40 50 60 70

Human factors (60%) Email compromise (17%) Infrastructure and connectivity (14%) Computing environment (6%) Physical security controls (3%)

Factors that increase cyber threat vulnerability

Should tax and law enforcement authorities have fewer or greater powers to tackle tax evasion?

20 10 20 30 40 50 60 70 80

More powers (70%) Current powers sufficient (15%) Fewer powers (15%)

Powers of authorities to tackle evasion

The Panama Papers caused my financial institution to…

21 10 20 30 40 50 60

Scour customer records for name matches (56%) Re-evaluate policies and then scour customer data (28%) Nothing - reliance on third party vendors (16%)

Response to Panama Papers

In your opinion, is CDD getting easier or harder?

22 10 20 30 40 50 60 70 80 90 100

Easier (10%) Harder (90%)

CDD activities

What does your organisation spend most of its time on when performing CDD?

23 10 20 30 40 50 60 70

Collection (63%) Analysis (25%) Decisions (13%)

CDD activities