center
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Guest speaker: Che Sidanius, Head of Financial Crime & Industry Affairs

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    his road is to identify regulatory

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    changes and lead programs of action

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    with the sole purpose of enhancing the

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    fight against financial crime

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    more effectively and delivering the best

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    possible outcome for the industry

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    his most notable awards include

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    receiving the potential award for

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    managing the 2079

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    financial crisis and a driving force

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    behind representatives impact company of

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    the year award

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    in 2019. over to you mr siddangus thank

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    you very much

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    uh very humbled by the invitation um

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    and and you know really look forward to

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    to today's discussion uh i hope you are

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    all well all the attendees it's been an

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    extraordinary

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    year so i hope you and your families are

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    all well

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    uh and safe uh hopefully next year or

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    certainly next time

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    we can do this in person uh i very much

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    look forward to visiting

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    wonderful india which i haven't had the

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    privilege to do yet

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    uh so hopefully we'll will will come out

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    of this uh

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    hopefully soon and um and look forward

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    to look forward to doing that

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    um so yeah so very briefly what i

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    thought i would do today

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    is share with you our perspective in

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    terms of what some of the

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    regulatory trends uh in the fight

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    against financial crime are

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    also some of the industry trends that

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    we're seeing

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    and really how increased collaboration

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    all across the public and the private

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    sector is reshaping

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    uh how we tackle financial crime how we

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    identify

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    financial crime uh and how we make the

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    whole system

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    much more effective so hopefully

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    that will that fits well within the

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    agenda uh what i will do is have it

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    some opening remarks for about 20 to 30

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    minutes uh and then

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    uh hopefully open it up for for q a but

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    please do

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    send your questions to the chat chat box

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    as well so without further ado

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    let me share with you uh the

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    presentation that we've prepared

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    and hopefully you can you can all see

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    that

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    and again one of the privileges of the

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    work that we do

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    is because we service so much part of

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    the anti-financial crime ecosystem

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    whether it's law enforcement the banking

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    community and non-governmental

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    organizations

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    and many others you know we have a

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    unique perspective in the sense of

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    actually looking at some of the trends

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    uh from from a holistic point of view

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    but also from a regional

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    point of view as well so hopefully we'll

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    give you um some of that

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    indications of where things are and

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    where things are heading

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    so without further ado i'll try to the

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    agenda for today which is a it's a broad

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    agenda i'll try to do my best to cover

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    most of these points

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    um i'll give you a little bit of a

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    flavor for what's happening

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    in certain regions i'll also talk about

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    some of the key

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    themes that we see dominate the policy

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    discussion

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    uh and also the focus areas in the next

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    few years

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    then we'll talk about some of the

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    industry trends the risks

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    and use of technology and this comes on

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    the back of a

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    report that we just released

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    last week in fact which is part of our

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    annual

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    risk and compliance report that will

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    reflect some of the risks but also some

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    of the

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    potential opportunities in the use of

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    technology

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    we'll talk about public private

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    partnerships this is not a new

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    term uh or a new concept but certainly

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    within the last several years there's

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    been a real step change

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    and shift and focus on information

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    sharing

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    partnerships and we'll give you some

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    examples

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    uh on on how we as a company are

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    collaborating

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    and what we're doing in that space focus

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    on

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    on some of the challenges that some of

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    these public private partnerships are

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    currently

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    facing including the challenges to scale

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    the increase in regional coverage and

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    some other um

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    issues that that they're facing that

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    we're hoping to solve

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    and then i'll also talk a little bit

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    about one of those public private

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    partnerships

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    uh called the global coalition to fight

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    financial crime

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    which is less about information sharing

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    partnerships from an operational level

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    but it's much more about engaging with

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    senior policymakers

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    who are currently undergoing significant

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    legislative change all across the world

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    and how we can bring our different

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    expertise

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    and best practice to the table whether

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    you're from a banking community

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    whether you're a fintech organization

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    with your crypto asset organization with

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    an ngo

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    and how we can bring all that to bear to

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    inform policy makers to ensure that any

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    legislative

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    you know changes and and manifestations

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    is really

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    you know they're informed by the best uh

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    best thinking that's that's out there so

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    we'll talk a bit

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    about what we're doing in that space and

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    also in fact that we're going to focus

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    our attention on asia in the next year

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    or so

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    um and then there's some additional

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    material that i'm not going to go

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    through it's more for your education uh

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    in terms of what we see are financial

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    crime priorities and the convergence in

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    fact between the sustainability agenda

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    and the financial crime agenda but

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    we can leave that for for for another

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    session but it's there for

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    for you to review if that's of interest

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    so let's take a step back um as many of

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    us

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    know who've been part of the financial

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    crime

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    fight for for a number of years that the

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    level of focus uh and the regulatory and

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    policy focus

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    on financial crime uh has really

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    you know gone beyond just the compliance

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    professionals

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    and in fact has evoked real scandals and

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    in a really evolved

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    a consciousness that we haven't seen

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    before

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    in terms of the public imagination on

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    these issues

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    a uh the eu has will release

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    an unprecedented legislative package on

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    anti-money laundering

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    legislation uh which in effect is well

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    it's probably

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    the most consequential in modern history

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    in terms of what they're trying to do

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    and we'll talk a little bit about what

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    those what those issues are

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    we've seen in the u.s uh in january 2021

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    uh past the aml act of 2020

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    which again is considered to be the most

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    significant

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    legislative package uh since the u.s

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    patriot act in 2001.

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    we've even seen the vatican being

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    brought into some of the scandals

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    due to an unprecedented amount of fraud

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    and corruption

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    and a number of areas including the

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    london real estate

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    and even money being that's that was

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    intended to use

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    to help free hostages were in fact

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    siphoned off and used for other purposes

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    we've also seen focus on on other

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    issues like human rights uh and

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    modern-day slavery

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    uh we've seen the eu for instance take

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    real action against many countries

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    including russia

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    china and others um on on sanctions

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    violations as far as human rights is

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    concerned

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    of course we all know about the growth

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    of crypto firms

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    um and that that segment has been

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    prone and unfortunately been used for

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    fraud

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    so there's a big focus both at the

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    financial action task force level

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    uh but also by many law enforcement and

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    regulators uh on

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    in the space and then of course the

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    pandemic

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    in the impact that pandemic has had on

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    all of our lives

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    including the financial crime space uh

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    the fact that we all work at home

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    the fact that we're even more now

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    dependent on technology than ever before

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    that has ris you know that has given

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    away to to

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    real levels of fraud and corruption

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    on top of which the unprecedented

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    stimulus packages

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    that have been issued to to support the

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    healthcare sector

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    uh and to secure healthcare products has

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    also been unfortunately been exploited

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    by criminals so there's a lot there in

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    terms of

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    that space including of course the focus

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    uh on

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    environmental crime uh in the fact that

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    the pandemic as far as we understand was

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    partly the result

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    of the interaction of wildlife

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    trafficking

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    uh in certain parts of china and so the

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    focus and the awareness

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    of our environmental crime has now

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    reached at the highest level whether

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    it's g20

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    the financial action task force that

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    just released a report in july

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    in fact on this issue and we'll talk

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    about what we consider to be the

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    the key issues and the key trends in

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    that space

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    and again uh moving on to that financial

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    crime is no longer seen as just another

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    compliance

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    uh topic it really is understood now

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    about the social

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    impact that it can have um we all aware

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    of

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    uh the scourge of modern-day slavery

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    there's more you know there's more

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    individuals now

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    caught in in slavery than there were

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    when when slavery was legal

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    and one-fourth a quarter of those

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    victims are children

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    and there's a real focus i think both

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    from policymakers but also from many

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    other

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    organizations including our own to

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    really look at modern day slavery in

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    supply chains

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    uh and this also is tied into the focus

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    on human rights in which modern day

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    slavery

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    part article four is this a subcomponent

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    of that but i think there's going to be

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    much more focus

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    on the on the impact of this issue

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    and and for us to find a way to share

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    information to share typologies to

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    really to tackle this

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    to tackle this horrible horrible uh risk

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    issue

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    there's also recognition that again

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    financial crime

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    is no longer seen as just another

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    compliance issue

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    in the fact that with the scandals that

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    we've seen

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    all across the world that actually

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    impacts the financial stability

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    of the banking system uh the stability

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    of uh you know of many many countries

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    because

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    frankly bank assets in many countries

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    are are multiples that of the country's

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    gdp

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    if we look at danske bank as just one

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    simple example

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    the danish central bank

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    admitted that because of the danske bank

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    scandal a few years ago

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    that in fact it had really put into

    10:34

    focus the credit rating of the entire

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    country

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    it had put into focus uh the stability

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    of the banking system as a whole so

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    there's a

    10:42

    there's a broad recognition uh that this

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    is a prudential issue this is a

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    macroeconomic

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    stability issue and in fact it's also an

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    issue that affects

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    capital flows investment flows foreign

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    direct investment

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    for many emerging economies and we've

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    had discussions

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    on this issue in south africa and many

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    other countries that have been

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    rocked by scandals by corruption

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    scandals and the impact that that has on

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    foreign direct investment

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    and other companies willing to to to

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    to increase and invest in their

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    operations within those

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    within those jurisdictions and then

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    turning back

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    again to the environmental crime we

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    definitive

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    refer to this issue as green crime uh

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    that is the fact that

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    um green crime is a broad term

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    that looks at not just wildlife

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    trafficking

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    but a whole slew of interconnected risk

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    typologies

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    illegal logging illegal fishing

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    and when you combine that holistic view

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    that in fact green crime under our very

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    noses

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    is probably one of the largest if not

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    the largest

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    um criminal activity when you combine

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    all of those risk typologies and it's

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    the issue

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    about we need to stop looking at

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    environmental crime of green crime as we

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    call it

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    as simply as another sustainability uh

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    topic but in fact it's about peace and

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    security

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    uh if we just turn our attention to the

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    incredible impact and devastation on our

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    families on our economy

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    uh then we actually have to take this

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    issue much more seriously

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    than we had in the past we first

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    launched

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    this topic in in january 2019

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    at the annual meeting at the world

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    economic forum at davos

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    unbeknownst to us and this is before the

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    pandemic really had

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    blossomed uh unfortunately and

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    devastated

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    and with this devastating effect

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    and from january 2019 to now

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    we have of course seeing the the

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    incredible impact that this issue has

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    had

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    not only in terms of raising awareness

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    about the transnational threat that

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    green crime has

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    but we also know from the world economic

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    forum that over 50 percent of global

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    global gdp

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    is is exposed to the loss of nature and

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    we

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    need to recognize that the criminal

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    criminal element here has a

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    significant impact on this issue

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    and through various events and surveys

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    and engagements throughout the industry

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    whether it's in compliance

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    sector the fintech sector the capital

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    market sector

    13:20

    the the response to some of our

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    questions were quite

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    um quite astounding when we asked

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    very simple question do you think that

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    green crime is a threat to peace and

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    security

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    anywhere between 70 and 80 said yes

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    uh when we asked should in fact green

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    crime receive equal attention

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    as money laundering and and uh in

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    terrorism financing

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    again 70 to 80 said yes and that range

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    really depended on which sectors and

    13:49

    which industries

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    that you asked but again across range of

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    of the of the industry at large

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    not just the compliance sector

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    that's even more uh eye-opening

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    is we ask the question should in fact

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    green crime be

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    added uh to the or the equal side

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    as a term be added to the international

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    criminal court

    14:14

    list of international crimes alongside

    14:17

    crimes against humanity

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    for instance uh and all you know over 80

    14:22

    percent

    14:22

    agreed with that so there's even a

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    momentum

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    now for the international criminal court

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    to add equal side

    14:30

    as a measure of real damage that it has

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    not only on our peace and security right

    14:35

    now but

    14:36

    but clearly on on the future

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    you would have seen that financial asset

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    task force i've issued a paper

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    as i mentioned just last week

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    you would also see that the g20 issued a

    14:48

    real strong statement

    14:50

    on environmental crime and we expect

    14:53

    that this not only to be an issue

    14:54

    that affects the financial services

    14:56

    industry and fintechs but also the

    14:59

    transport sector the manufacturing

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    sector

    15:02

    in other or organizations really to look

    15:04

    at supply chain risk

    15:07

    and also the impact that those companies

    15:09

    have they're the digital

    15:11

    and sustainable sustainable footprint

    15:13

    all across the world so this will no

    15:15

    longer be

    15:16

    seen in our view as looking at

    15:18

    sustainability in terms of what we

    15:20

    should do

    15:21

    but in fact looking at green crime on

    15:23

    issues that we should not do so these

    15:25

    will be they'll i think there'll be more

    15:26

    sanctions

    15:27

    uh issued there'll be more enforcement

    15:30

    uh by

    15:30

    law enforcement on these issues

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    and uh as as many of you will know um

    15:40

    or at least be aware i mentioned that

    15:41

    the unprecedented regulatory reforms

    15:44

    globally

    15:45

    i mentioned very quickly the u.s aml act

    15:48

    of 2020 we'll talk a little bit about

    15:50

    the eu's legislative package in a moment

    15:53

    but as i mentioned the environmental

    15:55

    crime agenda

    15:56

    the b-20 which is the industry advises

    15:59

    to the g20

    16:00

    are promoting public-private

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    partnerships and information-sharing

    16:03

    partnerships in a way that we haven't

    16:05

    done in the past

    16:07

    we'll talk a little bit about what we're

    16:09

    doing on information sharing

    16:10

    partnerships and how there's varying

    16:12

    there's new trends and new types of

    16:14

    those uh

    16:15

    of those of those frameworks that are

    16:17

    coming to four

    16:18

    and we'll talk a little bit about some

    16:20

    of the examples that we're involved with

    16:22

    we all know that the the concept of

    16:25

    obligated entities

    16:27

    and in terms of who's required to follow

    16:29

    anti-money laundering rules

    16:31

    and screening rules and customer due

    16:32

    diligence has been expanded to include

    16:34

    other sectors as we know with crypto

    16:36

    assets as just one example

    16:39

    and then we'll talk a little bit about

    16:40

    industry uh trends risk and the use of

    16:43

    technology

    16:44

    and then we'll we'll we'll finalize with

    16:46

    a discussion on

    16:47

    the global coalition

    16:51

    so let's turn our attention to the eu

    16:52

    for a moment

    16:54

    because it's this is um hasn't been

    16:57

    released yet

    16:58

    so it's not public but we've seen copies

    17:01

    of the aml's eu's aml package and we

    17:03

    think that this is a precursor

    17:06

    of regulatory uh trends that are going

    17:08

    to spread all across the world in many

    17:10

    different

    17:11

    jurisdictions and regions i won't

    17:14

    belabor on all of them

    17:15

    but i would focus on a few the first

    17:19

    is that for the first time the

    17:22

    anti-money laundering rules will move

    17:25

    from

    17:26

    what's called a directive which means

    17:29

    that member states has some wiggle room

    17:31

    in terms of how to implement them

    17:33

    and they will move from a directive to a

    17:35

    regulation

    17:36

    which basically means that those rules

    17:39

    will be directly transposed

    17:41

    into member state law this is a big deal

    17:44

    in the sense that there's an effort

    17:47

    to try to harmonize the regulatory rules

    17:51

    and there'll also be a

    17:52

    big enforcement a part of this as well

    17:55

    so not only will

    17:57

    sectors and industries and companies uh

    18:00

    be punished

    18:01

    for not um doing enough to implement

    18:04

    those rules but even member states

    18:06

    themselves and we've even seen in europe

    18:08

    malta

    18:09

    being added to the gray list and we

    18:11

    expect other countries added to the

    18:13

    the to the gray list as well the other

    18:16

    key provisions

    18:17

    that we expect to be getting more focus

    18:20

    is on public registries or ultimate

    18:22

    beneficial ownership regime

    18:24

    um there'll be a big focus on that in

    18:26

    terms of making sure that the member

    18:28

    state public registries are

    18:29

    interoperable

    18:30

    that the information is verified uh in

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    order to allow

    18:33

    organizations to actually understand who

    18:36

    they're doing business with what the

    18:37

    operational structures are and what the

    18:39

    ownership structures are

    18:42

    as contentious if not one of the most

    18:44

    contentious

    18:45

    uh is the fact that there will be a yet

    18:47

    a new

    18:48

    uh authority a regulatory authority that

    18:51

    will

    18:52

    be constructed from from from scratch

    18:55

    so the current scope

    18:59

    of having aml regime at the european

    19:01

    banking authority

    19:03

    will move away and in fact there will be

    19:05

    a completely new

    19:06

    regulator to actually look assess

    19:10

    and enforce uh eu uh aml

    19:13

    sort of legislation and and and progress

    19:17

    and then there's other issues that i'm

    19:19

    not gonna probably won't have time for

    19:21

    but there's

    19:21

    a number of other provisions as well the

    19:23

    aml legislative package is just one

    19:26

    this is part of a broad package

    19:29

    that looks at more due diligence when it

    19:33

    comes to

    19:33

    corporates and supply chain due

    19:36

    diligence

    19:37

    there's going to be an environmental

    19:39

    crime directive

    19:40

    there's going to be more focus on

    19:42

    electronic identification

    19:44

    uh more focus on kyc requirements

    19:48

    uh and on and on and on so we expect

    19:51

    that the eu themselves have really

    19:53

    called on themselves that they want to

    19:55

    be

    19:55

    one of the leading drivers and forces

    19:57

    for enhancing the current regime

    20:00

    and they will most likely take a very

    20:02

    much more active role in the

    20:04

    international stage

    20:06

    to actually engage with um with

    20:09

    authorities

    20:10

    in india in asia more broadly so you

    20:13

    know sub-saharan africa the middle east

    20:15

    and the americas as well

    20:21

    a quick look on industry trends and

    20:23

    risks in the use of technology and and

    20:25

    this

    20:26

    very much comes at the at the heel of of

    20:28

    our newly minted

    20:30

    um compliance written compliance report

    20:34

    uh we will make sure that that's

    20:35

    available to you uh within the

    20:37

    presentation that we have here we have

    20:39

    we do have a slide in the end

    20:41

    that has a lot of the references uh to

    20:43

    some of this uh

    20:44

    to some of this data that you make sure

    20:46

    that you'll have available to you

    20:48

    so there's a few things that we looked

    20:49

    at and this is part of our annual

    20:52

    survey that we conduct with you know

    20:55

    thousands of of companies uh globally

    20:58

    uh with you know multi-billion dollars

    21:01

    in revenue

    21:02

    to these are you know large

    21:03

    organizations where we try to get a

    21:05

    sense of you know what are the

    21:06

    what are the pressures what are the

    21:08

    risks that you're facing and i'll just

    21:10

    point out just a few um

    21:14

    it continues to be to be the fact that

    21:17

    the

    21:17

    commercial pressures uh dominate in

    21:20

    terms of

    21:21

    uh the decisions that companies make on

    21:24

    relationships partnerships

    21:26

    and business opportunities uh so 73

    21:29

    percent says you know the the

    21:31

    they're under incredible uh pressure to

    21:34

    increase revenue

    21:36

    uh and that certainly hasn't gone away

    21:37

    in fact that has gone up

    21:39

    uh since the last time that we we

    21:41

    conducted this survey and some of this

    21:43

    is understandable in terms of the

    21:44

    context

    21:45

    of the pandemic and the impact that

    21:48

    that's have on many many different

    21:49

    industries

    21:52

    we also see however um and this

    21:55

    this is a function i suspect of the

    21:58

    first question but where we ask you know

    22:00

    do you actually conduct due diligence

    22:01

    text due diligence checks

    22:04

    and majority 56 percent said they don't

    22:07

    um and and this is a bit of a worrying

    22:09

    trend and

    22:10

    and from our perspective is an area

    22:12

    that's going to increase the risks of an

    22:14

    organization being

    22:16

    either a potential sanctions being

    22:18

    issued

    22:19

    uh or or being caught in some kind of

    22:22

    supply chain

    22:23

    or sanctions levied against them

    22:28

    so this is quite surprising to me that

    22:30

    that number of organizations don't

    22:32

    conduct any due diligence checks

    22:34

    at all um 64

    22:37

    this is not surprising for what we hear

    22:39

    from many organizations

    22:41

    that the focus continues to be

    22:44

    regulatory compliance or

    22:45

    tick box or kickboxing exercise in terms

    22:49

    of do you have policy procedures and

    22:50

    sort of the bare minimum of being able

    22:53

    to demonstrate

    22:54

    to regulators that they have a program

    22:56

    and risk program in place risk and

    22:57

    control program in place

    22:59

    uh but majority of them don't focus on

    23:02

    on prevention

    23:04

    at all which is an area that we're

    23:05

    trying to encourage

    23:07

    more organizations to do um

    23:11

    cyber crime we mentioned that there's no

    23:13

    question that has become much more

    23:14

    difficult to contain

    23:16

    uh given remote working conditions that

    23:18

    we all live under

    23:19

    and cyber crime will continue to to

    23:21

    dominate in terms of how it affects

    23:23

    uh all of us and we need to sort of

    23:25

    watch that very carefully

    23:28

    bribery and corruption is still

    23:29

    considered to be very much commonplace

    23:32

    uh and that hasn't changed and that

    23:34

    number that's that

    23:35

    statistics is is in fact from a 2018

    23:39

    uh report uh and there's nothing that

    23:41

    we've heard

    23:42

    and that that that number has changed at

    23:44

    all so so this is you know another area

    23:47

    of concern

    23:49

    uh and then um we thought oh i thought

    23:52

    certainly that it was interesting

    23:54

    that that you know if you look at the

    23:56

    the the companies vulnerable to

    23:58

    financial crime you know whether you're

    24:00

    a private company or public company that

    24:01

    that in fact public companies tend to be

    24:03

    much more vulnerable

    24:05

    to some of these to some of these risks

    24:07

    and some of these issues

    24:10

    and then technology we turn our

    24:12

    attention to that

    24:13

    um there's been quite a bit

    24:17

    on in the last year year and a half and

    24:20

    in fact

    24:20

    accelerating investment in technology a

    24:23

    because of the

    24:24

    working conditions that we now live in

    24:28

    but also the recognition that in fact

    24:31

    technology

    24:32

    can really help identify financial crime

    24:34

    so 86 percent

    24:35

    uh said yes that is something that's

    24:38

    helped us

    24:39

    uh those who use technology also tend to

    24:43

    have

    24:43

    better collaboration with law

    24:45

    enforcement in terms of identifying the

    24:47

    types of criminal activity that they may

    24:49

    be exposed to

    24:52

    we've also seen a majority

    24:55

    you know consider that technology

    24:57

    improves the detection

    24:58

    and mitigation and they tend in fact to

    25:01

    invest even more

    25:02

    in in technology in terms of identifying

    25:05

    not only better screening practices

    25:08

    but also but also better risk typologies

    25:10

    as well

    25:12

    but we also have the issue of data

    25:15

    privacy

    25:16

    um in terms of having clarity

    25:20

    on how data privacy provisions affect

    25:23

    the

    25:23

    anti-money laundering provisions and

    25:25

    this is very much something that comes

    25:27

    out of the european union and the

    25:28

    general data protection

    25:30

    regulation and here we have some work to

    25:33

    do

    25:33

    in terms of understanding how

    25:36

    on the one hand we're trying to do more

    25:38

    in processing personal information

    25:40

    better quality information better

    25:42

    typologies

    25:44

    versus data privacy which tries to

    25:46

    minimize

    25:47

    uh data processing tries to minimize the

    25:50

    the ability to use

    25:51

    technology to make this make the fight

    25:54

    against

    25:54

    financial crime more effective less

    25:57

    costly

    25:58

    uh and also trying to address financial

    26:00

    exclusion

    26:01

    uh so there are more needs to be done in

    26:03

    this space we've certainly heard from

    26:05

    the european data protection

    26:06

    supervisors this is an area of focus

    26:09

    i suspect that this will you know commit

    26:11

    the four and come into discussions very

    26:13

    much in other regions including india

    26:14

    and many other

    26:16

    discussions as well including of course

    26:18

    data localization

    26:20

    which is another issue that we're trying

    26:22

    to engage with

    26:24

    a number of jurisdictions including

    26:25

    india

    26:27

    trying to localize the types of data

    26:28

    that they have within the country

    26:30

    uh and and for you know many companies

    26:33

    who are global with a global presence

    26:35

    uh that that becomes difficult in terms

    26:37

    of

    26:38

    managing managing that type of

    26:40

    restriction

    26:44

    and then lastly or

    26:47

    second to last in terms of information

    26:49

    sharing and we really are big believers

    26:51

    and how we can break down barriers

    26:54

    between ngos

    26:57

    the banking community um you know

    27:00

    technology companies payment services

    27:02

    companies and being able to share

    27:03

    information

    27:04

    in a much more effective way and while

    27:07

    um

    27:08

    historically the last few years

    27:10

    certainly the last five years

    27:11

    a lot of attention has been towards you

    27:14

    know

    27:15

    consortiums and formats like the joint

    27:17

    money laundering task force at the uk

    27:20

    have stood up public private information

    27:22

    sharing partnerships

    27:24

    that have stood up in singapore hong

    27:26

    kong

    27:27

    australia and many other jurisdictions

    27:30

    and those primarily have been driven by

    27:32

    either law enforcement to the

    27:33

    supervisors

    27:34

    bringing together a small group of banks

    27:36

    to try to find a way to

    27:38

    to share information in a more effective

    27:40

    way which we are big supporters of but

    27:43

    there's a broad

    27:44

    ecosystem of other organizations out

    27:46

    there

    27:47

    who have information and have data that

    27:50

    could be quite useful

    27:52

    and so these are four examples of

    27:55

    partnerships that we as a company have

    27:57

    engaged with to do exactly that

    28:00

    we announced the partnership with a

    28:03

    century

    28:04

    uh an organization based in washington

    28:06

    uh founded by george clooney and

    28:09

    john pendergrass really to look at

    28:11

    corruption in sub-saharan africa

    28:13

    um we've also formed a partnership with

    28:16

    the freedom seal

    28:17

    which was started by an extraordinary

    28:20

    woman called ronnie han

    28:22

    uh who in fact herself was was caught in

    28:26

    in child slavery uh in india

    28:29

    uh in a sense become a an advisor to the

    28:32

    un

    28:32

    and now the ceo of the freedom seal

    28:34

    which is a company

    28:35

    that looks at and works with companies

    28:38

    uh to look at their supply chain

    28:41

    and certifies that in fact none of the

    28:43

    products or services were caught

    28:46

    uh in in in human trafficking

    28:49

    and so we're working with her not only

    28:51

    to provide data

    28:52

    but also to engage with policy makers uh

    28:54

    to ensure that you know

    28:56

    we as a company and the industry are

    28:58

    doing our utmost

    29:00

    uh to tackle this issue united for

    29:02

    wildlife we partnered

    29:04

    with that organization which is a

    29:06

    consortium of not only

    29:08

    the banking sector but also the

    29:10

    transport sector

    29:11

    to look at wildlife trafficking and

    29:13

    illegal wildlife trafficking

    29:15

    it was it's run and co-founded by the

    29:17

    duke of cambridge

    29:19

    and again we are there as a data

    29:22

    provider but also

    29:23

    a an operational infrastructure provider

    29:26

    to ensure that there's a commonality the

    29:28

    data standards

    29:30

    are there the inclusion criteria is

    29:33

    standardized in order to make sure that

    29:35

    the best information

    29:37

    is really available and so we're working

    29:39

    with

    29:40

    united for wildlife uh to to scale and

    29:42

    to scope

    29:44

    uh and and to you know being able to

    29:46

    share that type of typologies in a more

    29:48

    effective way

    29:49

    most recently we're also now working

    29:52

    with the south african aml integrated

    29:54

    task force

    29:55

    which again is a collection of banks and

    29:57

    non-banks

    29:58

    to look at some very specific typologies

    30:00

    including wildlife trafficking

    30:03

    terrorism financing in other risk areas

    30:06

    really to being able to scale provide

    30:09

    the best data

    30:10

    available so all these are examples of

    30:13

    how

    30:13

    we can operate in a different way break

    30:16

    down barriers

    30:17

    really look at working across different

    30:21

    sectors

    30:22

    uh really to make sure that we bring the

    30:24

    best talent and the best capability

    30:26

    uh to bring to bear um and so this isn't

    30:29

    you know an area that i encourage

    30:31

    all of you for first you to contact us

    30:33

    if you're interested

    30:34

    in participating or certainly getting a

    30:36

    sense of what we're doing in this space

    30:39

    more more more technically uh and also

    30:42

    kind of what our plan is going forward

    30:44

    but you know this is an area that we're

    30:46

    going to increase our focus

    30:48

    uh in the next several years

    30:52

    and then lastly the global coalition so

    30:55

    not only are we big proponents of

    30:57

    of working better sharing information

    30:59

    better at an operational

    31:01

    tactical level but we also think that

    31:03

    it's important to engage with senior

    31:05

    stakeholders

    31:06

    um so we co-founded the global coalition

    31:09

    together with the world economic forum

    31:11

    and europol in 2018

    31:14

    really with a few key key objectives

    31:17

    the first is to raise awareness that

    31:19

    again financial crime is not a

    31:20

    compliance issue but has grave

    31:23

    impacts on on on the finances

    31:26

    infrastructure and human and societal

    31:28

    consequences to promote more information

    31:30

    more effective information sharing how

    31:33

    we can harness our best practices

    31:35

    and then really support governments and

    31:37

    law enforcement

    31:39

    and how we can bring all of our assets

    31:42

    to bear

    31:43

    what started between the three of us

    31:45

    between europa and world economic forum

    31:47

    and ourselves

    31:49

    has then grown quite a bit and what you

    31:52

    see here is really a representation of

    31:54

    the anti-financial crime

    31:55

    ecosystem so it's not just the banking

    31:58

    community

    31:59

    via the international you know finance

    32:02

    institute

    32:03

    and european banking federation but you

    32:05

    have also

    32:06

    the corporate treasurers who are there

    32:08

    you also have the royal united services

    32:10

    institute

    32:10

    the freedom seal as i mentioned um open

    32:14

    ownership mena financial crime group

    32:17

    uh and many other organizations as well

    32:19

    that represents and then you also have

    32:21

    fintech think crime exchange which is a

    32:24

    a a in consortium an organization

    32:26

    looking at fintech specifically

    32:29

    so it's a wide variety of sectors and

    32:32

    industries

    32:33

    that are now part of this and how we can

    32:35

    best again

    32:36

    harness each other's uh insight and

    32:39

    capability and best practice and i

    32:43

    encourage you to go to our website it's

    32:45

    quite an extraordinary collection not

    32:46

    only papers

    32:47

    but also policy positions and we and we

    32:51

    think it's a you know

    32:52

    one way in which we can effectively

    32:54

    engage with the policy makers to bring

    32:56

    them along the journey

    32:58

    uh in terms of what we think is

    32:59

    effective policy

    33:01

    part of that has been to engage with the

    33:04

    uk governments on a

    33:05

    data protection bill we we've

    33:07

    successfully amended or helped amend you

    33:10

    know to provide further clarity

    33:12

    on this issue from the uk's perspective

    33:14

    we've also

    33:15

    successfully engaged with the european

    33:16

    commission on its aml action plan

    33:19

    and we're delighted that they've adopted

    33:21

    many of the provisions that we

    33:22

    support including information sharing

    33:24

    partnerships including

    33:26

    more you know clarity around data

    33:29

    privacy and many other provisions as

    33:31

    well

    33:32

    and we're also engaging with the mena

    33:35

    region as they now are actually

    33:38

    considering

    33:39

    to establish a regional public-private

    33:41

    partnership

    33:42

    uh which we're delighted to do and and

    33:45

    as well some of the

    33:46

    sub-chapters we're delighted that john

    33:48

    cusack is your overall chair

    33:50

    uh for the next few years but we've also

    33:54

    brought in some of the best

    33:56

    and well-known leaders in this space to

    33:59

    do

    33:59

    to continue to drive some of these

    34:01

    initiatives we have

    34:02

    greta fenner who looks at

    34:04

    anti-corruption initiatives we have rob

    34:06

    wainwright

    34:07

    who looks at the critical question about

    34:09

    how we measure effectiveness

    34:11

    at the end of the day and then we have

    34:13

    three regional chapters

    34:15

    uh and i mentioned the mena chapter led

    34:17

    by ibdison lasud

    34:19

    to look at how we can form and promote

    34:22

    public private partnerships across the

    34:24

    region

    34:25

    as a whole what we expect to do in the

    34:27

    next year or so is turn our attention to

    34:29

    asia so clearly this is you know

    34:32

    us europe and mena chapter

    34:35

    focus as it's been in the last year and

    34:37

    a half but we will

    34:38

    turn our attention to asia and how we

    34:40

    can engage more effectively

    34:42

    uh with with uh with you know many

    34:44

    countries in the region including

    34:45

    including india so well you know so stay

    34:47

    stay tuned

    34:49

    so stay tuned for that i think i will

    34:52

    um end it there um i'm happy to

    34:55

    to take any any questions i hope you

    34:58

    found

    34:59

    um that helpful to give you a a

    35:02

    whistle-stop

    35:03

    tour of many of the you know the

    35:06

    initiatives that we're involved with but

    35:08

    also some of the global regulatory

    35:10

    uh trends um and and some of the issues

    35:13

    there so i will stop there hand it back

    35:15

    to the host and happy to take any uh

    35:17

    any questions

    35:26

    right so we have a few questions here

    35:29

    so i'll read out one of those video

    35:33

    so it sees any significant differences

    35:36

    in nature of financial crime and

    35:38

    approaches

    35:39

    to counter them in emerging markets as

    35:41

    opposed to developed markets

    35:44

    that's a great it's a great question so

    35:46

    i think fundamentally

    35:48

    uh no it's many of the same issues the i

    35:50

    guess

    35:51

    the difference potentially uh is the

    35:54

    impact

    35:54

    on foreign direct investment uh the

    35:58

    impact of

    35:58

    of or perceived risks by by companies

    36:02

    to invest and can potentially

    36:06

    impact our capital flows to emerging

    36:08

    markets

    36:09

    and we've heard that from from the um

    36:12

    from in fact many industries who wanted

    36:15

    to invest in south africa for instance i

    36:17

    was there before the pandemic

    36:19

    uh to talk with some of the industry

    36:21

    leaders who said look

    36:22

    che we're willing to invest 50 billion

    36:24

    in south africa

    36:27

    but we just uh don't know you know

    36:30

    how that regime is going to play out in

    36:32

    terms of the rest of the issues that

    36:33

    south africa has faced in terms of

    36:35

    perceived corruption and some of the

    36:37

    scandals

    36:38

    so i think those are you know issues to

    36:40

    consider and

    36:42

    one of the reasons why south africa of

    36:44

    course i've you know taken measures and

    36:45

    i'm sure they'll continue to do so

    36:47

    uh to really be seen as a safe haven for

    36:50

    investment

    36:51

    uh that will you know fuels and not only

    36:54

    infrastructure development

    36:55

    it increases taxes that enables uh you

    36:58

    know in more investment in

    36:59

    infrastructure including schools

    37:00

    hospitals etc so so i think i guess that

    37:03

    is

    37:03

    one component uh that is uh you know

    37:06

    different i guess or

    37:07

    a different take that impacts emerging

    37:09

    markets maybe more so than than

    37:11

    developed markets

    37:16

    all right so so i guess i think uh we

    37:18

    can take one more question from here

    37:20

    uh it reads how is the disparity in

    37:23

    accepting

    37:24

    and acting on effects of green crime or

    37:27

    environmental across regions and

    37:30

    countries impacting

    37:31

    the ability of the coalition to fight

    37:34

    such crimes

    37:34

    like how can this be addressed

    37:38

    one another great question so it's it's

    37:41

    important to note of course that

    37:42

    we think of green crime as yet another

    37:44

    example

    37:46

    of there's a difference between

    37:48

    countries being affected

    37:50

    where wildlife trafficking is being

    37:52

    extracted

    37:53

    you know the the countries and

    37:54

    jurisdictions there are distribution

    37:57

    uh points and countries that are then

    37:59

    end destinations

    38:02

    uh and of course you know the the the

    38:04

    countries most affected are the ones

    38:06

    uh where the animals in the in the in

    38:08

    the

    38:09

    activity is actually occurring in terms

    38:11

    of devastating

    38:12

    the wildlife the the fishing industry

    38:15

    uh etc um and and so you know

    38:19

    so i think that that is one one piece to

    38:21

    remember we also need to remember that

    38:23

    it's of course cuts across on all of the

    38:25

    financial sector in terms of the

    38:27

    the laundering of the proceeds of that

    38:30

    activity

    38:31

    but also the transport sector the

    38:33

    customs union

    38:34

    who also need to be brought in here in

    38:36

    terms of understanding how

    38:38

    you know certain trading certificates

    38:40

    are being exploited

    38:42

    um and look very much more closely in

    38:44

    terms of the supply chain

    38:46

    risks so how the coalition is going to

    38:48

    address this we're already

    38:50

    engaging with financial asset task force

    38:52

    on this we're all

    38:53

    also engaging with an organization to

    38:56

    look at international convention

    38:58

    on this which currently doesn't exist

    39:00

    because there needs to be laws

    39:02

    and consistent laws on this on this

    39:04

    issue in order to affect

    39:05

    uh implementation and enforcement uh and

    39:08

    we're doing it via the wildlife

    39:10

    trafficking convention as a beginning

    39:13

    step but we recognize that it's much

    39:15

    broader than just illegal

    39:16

    wildlife that encompasses a much broader

    39:19

    piece to that so so hopefully you know

    39:22

    i've gone to the

    39:22

    this there is a disparity in terms of

    39:25

    the impact there's no question about

    39:26

    that

    39:26

    in emerging markets uh tend to be the

    39:29

    ones most affected in terms of the

    39:31

    impact on its environment

    39:33

    the lacks of of of proceeds that are

    39:35

    being generated from this activity that

    39:37

    the government can

    39:38

    use for um you know green tourism and

    39:42

    in other you know areas um as a source

    39:44

    of revenue

    39:50

    all right that was a really insightful

    39:52

    session

    39:53

    and i believe that all of us have

    39:55

    certain key

    39:56

    takeaways to take from it

    39:59

    and i would like to thank you mr chase

    40:01

    daniels for sparing time for this highly

    40:03

    commendable talk

    40:05

    also another thank you goes out to all

    40:07

    our attendees who are here with us today

    40:09

    thank you so much everyone and we'll be

    40:11

    back again with the next session

    40:12

    please stay tuned

Pursuit 2021

How global regulatory developments, industry trends and collaboration are reshaping risk

Duration: 40 minutes

Che Sidanius, Head of Financial Crime & Industry Affairs delivers his keynote on 'How global regulatory developments, industry trends and collaboration are reshaping risk'
Ahead of the stream, you can read the full report here: http://refini.tv/CONNECTED