New Laws, Hot Topics in Europe and the Middle East - How They Affect You

The Second European Union Money Laundering Directive, whose impact is now felt across Europe and the world, covers many areas. A Third Directive is on the horizon. The Euro has become a currency of choice of many launderers. Within the enlarged European Union, eastern European countries are under pressure to improve their AML efforts. The United Kingdom’s Financial Services Authority has begun to stamp its authority by imposing large fines. France and Italy have been victim to several laundering scandals. Switzerland is a leader in repatriating corruption proceeds. The Middle East financial systems are suspected of moving funds destined for terrorism. Here, experts share their knowledge of the hot issues in these countries.

You will learn:

• How far the second EU directive has been implemented;
• What the third EU directive is likely to include;
• How EU members handle international cooperation in laundering cases;
• Impact on financial and non-financial businesses of the latest UK and mainland Europe regulations.

Speakers: Talal Alsayegh, Mary Bhawnani, Martin Owen, Olga Zudova
Moderator: Charles Intriago

Jim Richards Unplugged – Mastering the Internet’s Hidden Marvels To Do Your AML Work

This engrossing and rewarding panel introduces James Richards, the innovative director of Bank of America’s Financial Intelligence Unit, who will captivate you with a masterful presentation on how to use the Internet to perform much of your AML and due- diligence work. Jim, who co-founded the FIU concept for financial institutions at Fleet/Boston before its merger with Bank of America, shows how the Internet is a fabulous and inexpensive tool in the fight against money laundering.

He teaches you how to navigate through bountiful but little-known recesses of the Internet and gives you his crisp and clear explanation of a startling variety of powerful information sources for use in your daily work in the private sector or the government. We believe, this opportunity to learn unique and enriching skills, such as searching the “invisible” and “historical” web, is worth the cost of the attending alone!

Speaker: Jim Richards
Moderator: Charles Intriago

Risk Scoring Customers and Countries: The New Frontier of AML Controls

The legal requirements of many countries require financial institutions and businesses to adopt a "risk-based" approach in implementing anti-money laundering procedures for new and existing clients. A risk assessment is a careful segmentation and examination of the products and customers that pose risks to your business. From this, the measures and precautions for adequate protection may be implemented.

Here you will learn the risk-scoring methodologies used by other institutions for a variety of customers and countries, including those for correspondent banks and “Politically Exposed Persons”. It is also important to not forget the scrutiny your employees must receive in order to guard against “the enemy within”.

You will learn:

• How to detect danger zones in new customer acceptance;
• How to assess the money laundering risk of customers and countries;
• How to construct a “risk matrix” and assign "risk scores" using criteria such as customer sophistication and indicated levels of “Know Your Customer” detail.

Speakers: Mary Bhawnani, Adriana van der Goes-Juric, Thomas Spies, Albert Cluckers
Moderators: Saskia Rietbroek-Garces and Michael McDonald

Recently, the United Kingdom’s Financial Services Authority levied its highest fine ever on one of the country’s largest banks, Abbey National, for failing to maintain required AML controls. The risks of falling foul of the regulators are greater now as more institutions – including attorneys and accountants – are subject to reporting duties. A sound detection, reporting and auditing system for suspicious or unusual transactions is the key to protect your business.

Here, experts guide you on what an effective AML system should contain and how it can be kept effective by monitoring, reporting and independent audits.

You will learn:

• How to monitor for suspicious or unusual transactions;
• What government agencies may do with suspicious transaction report information;
• How to adjust your procedures to improve your AML programme’s effectiveness;
• How a sound independent audit can test the effectiveness of your AML programme.

Speakers: Martin Owen, Thomas Spies, Albert Cluckers
Moderator: Michael McDonald

Cross-Border Investigations: Securing Evidence and Sources of Information

Money laundering is primarily a trans-national phenomenon. That makes international cooperation vital to the success of the global offensive against money laundering. In a recent example of mutual assistance, Swiss prosecutors froze US$5 billion belonging to shareholders of Russia’s Yukos oil company; the largest sum ever seized by the Swiss in a laundering case. Here our experts guide you through the labyrinth of cross-border powers and co-operation.

You will learn:

• The formal and informal arrangements available to regulators, intelligence and other government agencies when gathering evidence in money laundering and terrorist financing cases;
• How agents obtain financial records and seize money held in financial institutions in other countries;
• All the tools available to European law enforcement agents to fight money laundering and terrorist financing;
• The role the Egmont Group plays in facilitating the exchange of information between nations;
• How privacy rights of financial institution customers suffer through the international exchange of their information;
• How the USA Patriot Act has been used in Europe and the Middle East.

Speakers: Muhammad Baasiri, Joseph Mahr, Barry Sabin
Moderator: Michael McDonald

What International Bodies Are Doing and How It Affects You: EU, FATF, Basel, IMF, World Bank

In Europe, the speed and details of the money laundering fight is governed by the Money Laundering Directives of the European Union. But there are several other bodies, which carry significant weight when establishing the standards of AML conduct. The international arena now has a couple of new big players, the World Bank and the International Monetary Fund. Their entrance, coupled with the new 40 Recommendations on Money Laundering of the Financial Action Task Force, are changing the face of global money laundering. Other organisations, including the United Nations, the Basel Committee and Interpol, are active also and place these issues high on their agendas. No nation or institution can ignore such actions and programmes.

You will learn:

• The programmes and recommendations of international bodies and their impact on you;
• How nations are punished for disobedience with international AML standards after the demise of the FATF’s “name and shame” list;
• What Basel’s Customer Due Diligence standards mean to financial institutions;
• Why the AML programmes of the World Bank and IMF have the best chance of improving global efforts.

Speakers: Muhammad Baasiri, Joeb Rietrae, Delphine Schantz
Moderator: Saskia Rietbroek-Garces

Latest Money Laundering and Terrorist Financing Trends and Methods

Money laundering methods and techniques have become more creative to accommodate the more complicated financial relationships, products and delivery methods now available to the clients of financial institutions around the world. Advances in technology, the velocity of money-flows and transactions worldwide, Internet banking, transfer pricing schemes, informal value transfer methods, including Hawala, are some of the methods criminals use to distance themselves from their money. Charities and international trade price manipulation have been used as vehicles for raising and laundering funds destined for terrorism. We learn from September 11, that so much is yet to be learned about terrorist financing.

Here, top experts from the front-line explain the latest international money laundering and terrorist financing methods and how different types of institutions and businesses can serve the money launderers.

You will learn:

• How recently discovered laundering techniques work and how terrorists and other criminals use them;
• How dirty money moves through offshore havens, private banking, Hawala, charities and other vehicles;

Speakers: Joseph Mahr, Barry Sabin, Ramzi Tarabishi
Moderator: Charles Intriago

Refreshment Break in the Exhibition Hall Courtesy of Norkom Technologies

Risk Scoring Products and Transactions: The New Frontier of AML Controls

The goal in “risk-scoring” is to limit your exposure to money laundering risks. In the increasingly volatile and hazardous money-laundering world, where unknown legal and regulatory hazards, as well as risks to reputation, lurk in every part of a financial institution’s operations, your employees need to be alert to the potential danger zones and know how to navigate around them.

The experts will give you the practical and proven knowledge and strategies you need to define the danger zones of your business products and transactions. You will learn what your peers are doing to minimize their exposure through well-designed risk management practices and scoring.

You will learn:

• How to develop a matrix of the risks you face and assign “risk scores”;
• How criteria such as product sophistication, propensity for money laundering, accessibility and attractiveness to terrorists serve to set the risk grade;
• Best practices on assigning risk weights for different criteria.

Speakers: Mary Bhawnani, Adriana van der Goes-Juric, Thomas Schelmbauer, Thomas Spies
Moderator: Jim Richards

Money Laundering Threats for Securities Dealers, Casinos, Solicitors, Bureaux de Change and Other Non-Banks

Bureaux de change, casinos, investment advisors, securities dealers and many other non-bank financial institutions haven been brought under AML programme requirements by the European Union’s Directive of 2001 and the Revised 40 Recommendations of the Financial Action Task Force. In the EU and many other countries, including the United States, non-bank financial institutions are now subject to the full array of AML requirements, such as AML programmes, suspicious transaction reporting and customer identification procedures.

Here, you will learn the key elements of a sound AML programme for non-bank financial institutions, how to build an effective suspicious transaction reporting system and how to respond to a government investigation.

You will learn:

• What the Second and Third EU Directives mean to the non-bank industries;
• The laundering vulnerabilities of the casino and securities sector, and “gatekeepers”;
• What remittance companies can do to keep money launderers away.

Speakers: Rainer Hoerning, Martin Owen
Moderator: Michael McDonald

Getting a Good Return on Your Investment in AML Technology

Behaviour detection technology, decision-making, artificial intelligence software, filtering solutions and other innovative technology are now available to assist financial institutions and other businesses to carry out a variety of AML duties. Many of these complex systems help institutions and businesses understand the past, present and future behaviour of the customers.

Here, top experts share their knowledge and guide you on how to select and implement technology-driven AML programmes.

You will learn:

• How to keep the software process cost effective by sound determination of your needs;
• How to integrate and leverage existing software systems;
• The benchmark tools you need to measure performance;

Speakers: Rowan Bosworth-Davies, Patric Marshall, Rupert de Ruig, James Wills
Moderator: Saskia Rietbroek

The Extra-territorial Reach of the US Money Laundering Laws and How You Are Affected

The criminal money laundering laws of the United States are broad in their scope, carry “extra-territorial” reach and are the most powerful in the world. Yet, although they pose a serious threat to financial institutions in Europe, the Middle East and the rest of the world, they are not widely understood. Recent cases show how this “long-arm” reach has resulted in the prosecution and conviction of people who had not stepped foot in the U.S. The USA Patriot Act strengthened these laws by adding some underlying crimes committed outside of the U.S., which are called “Specified Unlawful Activities,” and allows the forfeiture of a foreign bank’s US account for the funds of its overseas customers! Without leaving U.S. soil, U.S. agents may easily obtain financial documents from any foreign entity holding a U.S. account. Here, top experts show how this extra-territoriality reaches you.

You will learn:

• The impact of the USA Patriot Act on institutions in Europe, Asia and the Middle East;
• How the extraterritorial reach of the U.S. money laundering laws has been used in some interesting real-life cases;
• How U.S.-based correspondent accounts of European, Asian or Middle Eastern institutions can be seized by U.S. authorities, if your client is under suspicion.

Speakers: Michael McDonald, Jim Richards, Barry Sabin, Thomas Spies
Moderator: Charles Intriago

Know Your Employee – The Danger of “The Enemy Within” and How to Select and Train the Good Ones

It is not just your customer that you must “know.” An improperly screened employee can cause as many problems as a bad customer. Online training programmes, written materials, videotapes, intranet systems and in-person lectures are all used as AML training vehicles around the world.

Here experts show you how to protect your institution from the “enemy within.” They also guide you on the training of good employees, the cornerstone of all effective AML programmes. Here, you will learn who to train, how, and what you should do to ensure that your training programme reflects new developments in the laws and laundering methods.

You will learn:

• How to screen employees and involve human resources, security and your board of directors;
• How recent cases have elevated the importance of “Know Your Employee” programmes;
• The essential elements of an effective AML training programme and how to conduct it.

Speakers: Mary Bhawnani, Thomas Schelmbauer, Ramzi Tarabishi, Steven Verhoeven
Moderator: Saskia Rietbroek-Garces

Middle East Workshop: The Region’s Challenges from Money Laundering and Terrorist Financing

In this target-focused workshop, you will receive concentrated instruction on money laundering and terrorist financing issues in the Middle East region, including new money laundering and terrorist financing laws and regulations, Islamic banking and Hawala and other informal value transfer methods.

You will learn:

• What Middle Eastern financial institutions are doing to protect themselves against money laundering and terrorist financing;
• How Islamic banking works and its relation to Western banking practices;
• The money laundering vulnerabilities of Islamic banks;
• How Middle Eastern governments are dealing with AML and terrorist financing issues.

Workshop leaders: Muhammad Baasiri, Talal Alsayegh, Ramzi Tarabishi