Update on Implementation Issues of DFS 504 Compliance

Sep 24, 2019 1:00pm ‐ Sep 24, 2019 2:15pm

Identification: TUE16

• Reviewing cases to discern what “reasonably designed” transaction monitoring and OFAC sanctions filtering systems that address institutions’ specific risks require in practice

• Outlining strategies to deliver annual 504 certification including endorsement of board and confirming involvement of IT, internal audit and others in attaining effective monitoring

• Maintaining ongoing 504 compliance with policies such as comprehensive institutional risk assessments, end-to-end AML data validation and updating filtering as technology allows

Gaming Spotlight: Adapting AML to a Rapidly Changing Gambling Landscape

Sep 24, 2019 1:00pm ‐ Sep 24, 2019 2:15pm

Identification: TUE17

• Charting growth of gambling including online gaming via mobile devices to identify growing issues such as KYC, regulatory expectations for CDD/EDD and employee training

• Utilizing tech innovations to automate risk management processes in areas such as ID validation, transaction monitoring and screening for sanctions and/or PEPs matches

• Reviewing current issues such as legalization of sports betting to develop risk-based approaches to AML for both gaming organizations and banking services providers

Consenting Views: Achieving Positive Outcomes from Consent Order Recovery (Part Two)

Sep 24, 2019 1:00pm ‐ Sep 24, 2019 2:15pm

Identification: TUE18

• Obtaining management buy-in of remediation plan to secure resources such as outside consultants and institutional support for initiatives such as enhancing culture of compliance

• Developing and implementing monitoring and reporting tools to track remediation progress and regularly update examiners to affirm credibility of recovery execution

• Facilitating mid-remediation feedback from regulator to assess efficacy of action plan progress and adjust recovery plan as warranted based on examiner input

Sanctions Update: Keeping Up with Recent Changes

Sep 24, 2019 1:00pm ‐ Sep 24, 2019 2:15pm

Identification: TUE19

• Reviewing status and complexities of sanctions involving Russia, Iran, North Korea and Cuba to ensure compliance systems reflect current regulatory requirements

• Delineating growing divergences between US and EU sanctions regimes to identify inter-jurisdictional risks and develop strategies for addressing cross-border sanctions conflicts

• Analyzing OFAC’s 50% Rule to mitigate sanctions risks involving transactions with entities controlled or owned, in whole or in part, by sanctioned individuals or governments

Unifying the Fight Against Financial Crimes: Fusing AML, Fraud and Cyber Programs

Sep 24, 2019 1:00pm ‐ Sep 24, 2019 2:15pm

Identification: TUE20

Presented by Promontory, an IBM Company

  • Learning how to improve the fight against financial crimes in the digital age by fusing AML, fraud and cyber
  • Reviewing industry best practices to protect real-time payments and mitigate fraud and money laundering risk
  • Discussing consolidated customer onboarding risk assessments in the digital age – combined KYC processes to identify money laundering and fraud risk

Building a Robust AML Program with Deep Integrated Technologies

Sep 24, 2019 1:00pm ‐ Sep 24, 2019 2:15pm

Identification: TUE21

Presented by Nice Actimize

  • Reducing onboarding friction while enhancing client profiles
  • Identifying hidden risks existing beyond direct customer relationships
  • Magnifying machine learning capabilities to foster improved anomaly detection

How to Buy AI: Shopping for Artificial Intelligence Solutions

Sep 24, 2019 2:45pm ‐ Sep 24, 2019 4:00pm

Identification: TUE24

• Reviewing priorities of AML and FCC operations to determine functions such as transaction monitoring or investigations conducive to AI integration and capabilities

• Mapping an AI infrastructure that addresses issues such as storage, legacy system compatibility and scalability to pinpoint and vet vendors best suited to fulfill institutional needs

• Auditing post-integration processes to determine operating outcomes and efficiencies in areas such as false positive reduction or other metrics and identify and rectify systemic deficiencies

TBML: Optimizing New Tools to Combat Trade-Based Money Laundering

Sep 24, 2019 2:45pm ‐ Sep 24, 2019 4:00pm

Identification: TUE25

• Utilizing IT innovations to supplement manual reviews and more efficiently manage TBML risks such as those involving sovereignty, nature of goods and transaction transparency

• Optimizing data-driven systems to manage risks such as transshipment via sanctioned countries and flag potential schemes such as invoice fraud and black market peso exchanges

• Auditing anti-TBML systems to gauge strength of controls in areas such as KYC/KYCC, risk rating accuracy, alert generation and resolution and robust refreshment of entity profiles

Sanctions Spotlight: The Venezuelan Morass

Sep 24, 2019 2:45pm ‐ Sep 24, 2019 4:00pm

Identification: TUE26

• Tailoring sanctions models to address unique Venezuelan risks including transactions with banned entities, trade-based money laundering and the looting of state enterprises

• Analyzing case studies such as Operation Money Flight to detail Venezuelan PEP and SDN risks and examining methods to launder proceeds such as US real estate purchases

• Keeping staff current on Venezuelan sanctions shifts and utilizing KYE to mitigate risks of rogue employees aiding sanctions avoidance schemes such as payment data stripping

AML Yoga: Meditations on Creating Agile Compliance Programs

Sep 24, 2019 2:45pm ‐ Sep 24, 2019 4:00pm

Identification: TUE27

• Building flexibility into AML culture by emphasizing importance of robust responses to changing regulatory and business environments and collective development of action plans

• Stretching available human capital by supporting skills acquisitions by staff (including yourself) and creating nimble workflows to heighten expertise and quick-response capabilities

• Harmonizing risk management goals and values of compliance and business sides to reduce operational frictions and foster a cohesive culture of compliance across the enterprise