HomeWebcastAML/BSA and OFAC Compliance: Practical Guidance for Banks and Financial Institutions
 CLE

AML/BSA and OFAC Compliance: Practical Guidance for Banks and Financial Institutions

Live Webcast Date: Friday, February 14, 2014 from 12:00 pm to 2:00 pm (ET)
CPE-Tax, Accounting and FinanceRecording

GivJoin us for this Knowledge Group Webinar. en the current economic environment, virtually every business transaction could pose significant & systemic risks for banks and other financial institutions. Adding to the challenge is stepped up enforcement by regulators. To help financial executives navigate through the myriad of challenges facing them, The Knowledge Group is producing “AML/BSA and OFAC Compliance: Practical Guidance for Banks and Financial Institutions Webcast.” 

This two-hour webcast is aimed at offering step-by-step practical guide in developing and/or improving your AML/BSA and OFAC model by addressing the following key topics:

· AML/BSA and OFAC System Reviews
· Identify and Understand Risk Appetite
· Compliance Program for a Financial Institution
· Remodeling an Effective OFAC Policy
· BSA Examiner's Checklist
· Setting up Risk Policy Guidelines and Internal Controls
· Regulatory Issues and Best Practices 
 

Agenda

SEGMENT 1:

Thomas E. Crocker, Partner, 
Alston & Bird LLP 
 

  • The rise of operational risk
  • Application of the FFIEC BSA/AML Examination Manual
  • Hot compliance topics
  • Lessons from recent enforcement
  • Bank regulators' expectations for internal compliance programs

SEGMENT 2:


Erin McAvoy, Principal, Financial Services, 
Ernst & Young LLP

and

Jonathan H. Burke, Manager, Financial Services Risk Management, 
Ernst & Young LLP 
 

  • What are we seeing in the evolution of AML and sanctions compliance?
    • Convergence/divergence of AML and sanctions compliance focus and processes
    • US sanctions targeting not just entities and individuals but also activities and non-US persons
    • The pace of regulatory expectations can be slower than evolving risks
  • Identifying and understanding real risk
    • Is "real" risk the risk of compliance violations or of financial crime itself?
    • Differences in AML and sanctions geographic risks
    • Is the appropriate approach "risk based" or "risk averse?" And should risk be exited or   managed?
  • Emerging trends and next generation financial crime compliance
     
    • The rise and fall and rise of terrorism
    • Leveraging screening capabilities
    • In-house Financial Intelligence Units' (FIUs)/analytic capabilities

 

SEGMENT 3:


Carol Spawn Desmond, Counsel, 
Satterlee Stephens Burke & Burke LLP 
 

  • Costs of AML compliance (in more ways than one):
    • Balancing what's easiest against what generates unwanted attention of examiners (setting security parameters too low=a lot of SARs=BSA examiner dissatisfaction)
    • The never-ending story #1 (Money Talks), getting C-level buy-in to efficient and sustainable compliance: tension between deal closers and compliance requirements
    • The never-ending story #2 (The Devil You Know), getting C-level buy-in to efficient and sustainable compliance: tension between failing or inefficient internal compliance software systems or protocols (with "known" costs) and installation of improved systems (with "unknown" costs)
  • Lessons learned:
    • C-level commitment to establishing protocols for and accepting the consequences from determinations not to follow compliance protocols and requirements
    • BSA examiners' increasing reliance on 3rd-party providers (to establish and provide compliance testing for banks)
    • Client quote: "you better have 20-20 hindsight because the regulators do"
  • Hot-topics/international issues:
    • "Bitcoins and bags of cash" (keeping AML issues ahead of the curve in new-world currencies)
    • Even the most commonplace of cross-border transactions can't have the slightest errors

SEGMENT 4:


Donna DeMartino, Senior Director, 
Alvarez & Marsal

and

Peter Kwan, Director, 
Alvarez & Marsal 
 

  • Conducting independent Third Party BSA/AML Technology Assessments
    • Importance (from Internal Audit and independent 3rd party opinion perspective)
    • Common Pitfalls: customer stratification, Inefficient reporting capabilities, adequate testing and tuning
    • Addressing the common blind spots: data feed reviews, controls gaps, data ownership and remediation
  • Portable Technology Infrastructure For Look Backs (Directed and Non-Directed)
    • When to perform a self-directed look back
    • Assessing Your organizations Look Back readiness
    • Lessons learned from Look Back engagements
    • The overall cost and hidden long term benefits

Who Should Attend

- BSA/AML and OFAC Officers
- Risk & Compliance Officers
- General Counsel
- Sanctions Advisors/Officers
- Attorneys – BSA/AML and OFAC Functions
- Finance Executives
- Operations and Security Officers
- And other interested professionals

SEGMENT 1:

Thomas E. Crocker, Partner, 
Alston & Bird LLP 
 

  • The rise of operational risk
  • Application of the FFIEC BSA/AML Examination Manual
  • Hot compliance topics
  • Lessons from recent enforcement
  • Bank regulators' expectations for internal compliance programs

SEGMENT 2:


Erin McAvoy, Principal, Financial Services, 
Ernst & Young LLP

and

Jonathan H. Burke, Manager, Financial Services Risk Management, 
Ernst & Young LLP 
 

  • What are we seeing in the evolution of AML and sanctions compliance?
    • Convergence/divergence of AML and sanctions compliance focus and processes
    • US sanctions targeting not just entities and individuals but also activities and non-US persons
    • The pace of regulatory expectations can be slower than evolving risks
  • Identifying and understanding real risk
    • Is "real" risk the risk of compliance violations or of financial crime itself?
    • Differences in AML and sanctions geographic risks
    • Is the appropriate approach "risk based" or "risk averse?" And should risk be exited or   managed?
  • Emerging trends and next generation financial crime compliance
     
    • The rise and fall and rise of terrorism
    • Leveraging screening capabilities
    • In-house Financial Intelligence Units' (FIUs)/analytic capabilities

 

SEGMENT 3:


Carol Spawn Desmond, Counsel, 
Satterlee Stephens Burke & Burke LLP 
 

  • Costs of AML compliance (in more ways than one):
    • Balancing what's easiest against what generates unwanted attention of examiners (setting security parameters too low=a lot of SARs=BSA examiner dissatisfaction)
    • The never-ending story #1 (Money Talks), getting C-level buy-in to efficient and sustainable compliance: tension between deal closers and compliance requirements
    • The never-ending story #2 (The Devil You Know), getting C-level buy-in to efficient and sustainable compliance: tension between failing or inefficient internal compliance software systems or protocols (with "known" costs) and installation of improved systems (with "unknown" costs)
  • Lessons learned:
    • C-level commitment to establishing protocols for and accepting the consequences from determinations not to follow compliance protocols and requirements
    • BSA examiners' increasing reliance on 3rd-party providers (to establish and provide compliance testing for banks)
    • Client quote: "you better have 20-20 hindsight because the regulators do"
  • Hot-topics/international issues:
    • "Bitcoins and bags of cash" (keeping AML issues ahead of the curve in new-world currencies)
    • Even the most commonplace of cross-border transactions can't have the slightest errors

SEGMENT 4:


Donna DeMartino, Senior Director, 
Alvarez & Marsal

and

Peter Kwan, Director, 
Alvarez & Marsal 
 

  • Conducting independent Third Party BSA/AML Technology Assessments
    • Importance (from Internal Audit and independent 3rd party opinion perspective)
    • Common Pitfalls: customer stratification, Inefficient reporting capabilities, adequate testing and tuning
    • Addressing the common blind spots: data feed reviews, controls gaps, data ownership and remediation
  • Portable Technology Infrastructure For Look Backs (Directed and Non-Directed)
    • When to perform a self-directed look back
    • Assessing Your organizations Look Back readiness
    • Lessons learned from Look Back engagements
    • The overall cost and hidden long term benefits

Thomas E. CrockerPartnerAlston & Bird LLP

Mr. Crocker's practice focuses on regulatory and enforcement aspects of international business. Mr. Crocker has over 30 years' specialization in sanctions, export controls, foreign direct investment reviews by the Committee on Foreign Investment in the United States (CFIUS), anti-money laundering, Foreign Corrupt Practices Act (FCPA) and technology cooperation issues. He has particular expertise in the Office of Foreign Assets Control (OFAC) regulations, Export Administration Regulations (EARs) and the International Traffic in Arms Regulations (ITAR). 

Mr. Crocker has assisted some of the largest global financial institutions, as well as foreign and domestic companies in the technology, pharmaceuticals, biotechnology, chemicals, telecommunications and defense sectors, in policy counseling, regulatory interpretation, compliance, internal investigations and civil/criminal enforcement matters before the Departments of the Treasury, Commerce, State, Homeland Security, Defense and Justice. He also represents clients before Congress.

Jonathan H. BurkeManager , Financial Services Risk Management Ernst & Young LLP

Jonathan is a manager in EY’s Financial Services Advisory practice. He joined the firm in 2012 after more than seven years with the US Government, including assignments within the Treasury Department, State Department and US Senate. In his current role, Jonathan advises global financial institutions on sanctions and money laundering risks, as well as the effectiveness of their compliance programs and system processes. While at the US Treasury, he was a senior policy advisor in the Office of Terrorism and Financial Intelligence, where he played a key role in developing and implementing strategies relating to economic sanctions and advising senior leadership on matters of national security policy. 

Jonathan speaks frequently before global industry groups on matters concerning financial sanctions. He recently co-authored an article entitled, Understanding sanctions: How to identify risk factors. 

Carol Spawn DesmondCounsel Satterlee Stephens Burke & Burke LLP

Carol Spawn Desmond is counsel to Satterlee Stephens Burke & Burke LLP.  Her practice consists of financings and other commercial transactions; regulatory guidance to issuers, banks, investment advisers and NRSROs; and intellectual property and data protection advice to international clients. She is a frequent panelist for the Business Division of the New York State Bar Association (Securities Regulation Committee) and speaks widely on regulatory issues to financial services groups and other practitioners. Ms. Desmond is admitted to practice in the State of New York and in the United States District Court for the Southern and Eastern Districts of New York. Ms. Desmond earned her J.D. from Georgetown University Law Center, where she served as the Topics Editor of the Immigration Law Journal. Ms. Desmond earned a B.A., magna cum laude, from the University of Miami, Coral Gables, Florida.

 

Donna DeMartinoSenior DirectorAlvarez & Marsal

  • Donna DeMartino is a Senior Director with Alvarez & Marsal's Dispute Analysis & Forensic Services in New York where she is currently the lead in the BSA/AML and Compliance Technology Service Line. She brings more than 20 years of management consulting experience in leading and managing large, complex technology implementation efforts, investigations, BSA/AML Look Backs and Forwards and has supported compliance, forensic, dispute and quarterly audit projects with a specific focus on fraud detection.
  • Ms. DeMartino has spent the last 13 years focusing on regulatory and compliance engagements within the financial services industry, specifically banking and brokerage. While she specializes in compliance related technologies, such as interdiction (OFAC), transaction monitoring applications, case and SAR management systems, she also has in-depth expertise in the policies and procedures that are captured in the business rules within the compliance's technology infrastructure (i.e., dynamic risk scoring, customer and enhanced due diligence, wire transfer transactions, e-payments, etc.).
  • From a project management perspective, she has provided management oversight to customer remediation efforts, transaction monitoring reviews and assessments, gap analysis, sanction reviews, work flow and case management product selections, testing, refinement and implementations. In addition, she has assisted clients in calibrating their thresholds and settings within the compliance technologies to accommodate enhancements and augmentations made to the financial institutions' business models.
  • Prior to joining A&M, she was at Deloitte, Pinkerton Consulting and Booz Allen and Hamilton.
  • Ms. DeMartino earned a dual bachelor's degree in arts and sciences from Syracuse University with honors. She is a frequent speaker on topics related to technologies within compliance and has written several articles on the subject.
  •  

 

Peter KwanDirector Alvarez & Marsal

  • Peter Kwan is a Director in the Forensic Technology Services practice within Alvarez & Marsal's Global Forensic and Dispute Services line of business in New York. He brings 10 years of consulting experience in the management and implementation of data analytics efforts, BSA/AML Look-back reviews, and strategic database design and implementations
  • Currently, Mr. Kwan is performing post-implementation testing for the Internal Audit department of a mid-Western based U.S. bank using the Actimize system. Previously, Mr. Kwan worked on a BSA/AML technology assessment for a large bank in Mexico offering US Dollar repatriation services to their customers.  While at A&M, he has helped clients with regulatory driven Look-backs mandating the screening of transaction counterparties against governmental lists (e.g. OFAC) and the identification of reportable suspicious transactional activity, performing BSA/AML technology assessments on their usage of BSA/AML automated tools (YellowHammer BSA, AML Manager, Banker's Toolbox), and assisted with an implementation of the CDD module of NICE-Actimize.
  • Prior to joining A&M, Mr. Kwan worked in the Data Management Group at PricewaterhouseCoopers (PwC). His past project work has focused primarily on the following areas for clients in the Financial Services industry:
    • Anti-Money Laundering:
      • Designed name matching techniques to compare information from wire remittances against the OFAC and sanctioned country lists and performed data analytics to identify transactions with High Risk jurisdictions (specifically Iranian U-Turn transactions) for a large Japanese bank;
      • Implemented interim transaction monitoring tools to identify potential SAR reportable activities for two different South American based banks and the embassy banking division of a global Financial Institution;
      • Performed unification of customers from different lines of business and an enterprise customer risk ranking for a Mid-West regional bank in the U.S.;
      • Performed data modeling, database development, and data analytics for several multi-year look-back engagements;
      • Conducted data quality and integrity reviews of transactional and customer level data;
      • Assisted in the refinement and optimization of AML rule/scenario thresholds
    • Regulatory Reporting: Design & development of an automated data ingestion and reporting tool to generate quarterly FDIC loan loss reports for a mid-Atlantic regional banks
    • Audit Automation: Development of tools to automate Partner Capital Allocation testing for hedge fund audit teams
    • Business Intelligence: Design of a dimensional data model to convert & store and report 5+ years of the data from the Financial Planning & Analysis group of a publicly trade Hedge Fund/Private Equity client. Designed Business Objects specifications to leverage the data model for reporting

Course Level:
   Intermediate

Advance Preparation:
   Print and review course materials

Method Of Presentation:
   On-demand Webcast

Prerequisite:
   NONE

Course Code:
   134518

NASBA Field of Study:
   Specialized Knowledge and Applications

NY Category of CLE credit:
   Skills

Total Credits:
    2.0 CLE

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About the Knowledge Group

The Knowledge Group

The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.

About the Knowledge Group

The Knowledge Group

The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.

With more than 800 attorneys, Alston & Bird is a leading national AmLaw 50 firm. The firm's core practice areas are intellectual property, complex litigation, corporate and tax, with national industry focuses in energy and sustainability, health care, financial services and public policy. The firm has built a reputation as one of the country's best employers, appearing on FORTUNE magazine's ranking of the "100 Best Companies to Work For" 14 consecutive years, an unprecedented accomplishment among law firms in the United States. The firm has offices in Atlanta, Brussels, Charlotte, Dallas, Los Angeles, New York, Research Triangle, Silicon Valley, Ventura County and Washington, D.C.

Website: https://www.alston.com/

Named best consultancy by Operational Risk & Regulation magazine for the fourth consecutive year, EY provides a breadth of advisory services including operational risk management, enterprise risk governance, capital management, data management and reporting, anti-money laundering and regulatory compliance technology services to the world’s largest and most complex financial institutions. 

EY’s Financial Crimes practice is a globally integrated team of industry leaders drawn from regulatory, compliance, business, enforcement and risk-related backgrounds. Our unique insights in current and future practices, regulatory expectations and optimization of program effectiveness have helped the world’s leading firms manage their money laundering risk while also managing cost. Our depth of experience and global connectivity on critical topics includes program design, AML optimization, sanctions compliance and technology enablement and enhancement. 

The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.   

Satterlee Stephens Burke & Burke LLP is a dynamic mid-sized law firm providing skilled, professional legal services to the business community, to public and private institutions, and to individuals. Today, in its second century, it is proud to have numerous attorneys throughout all departments selected for inclusion in The Best Lawyers in America, Super Lawyers ,Chambers USA and Who’s Who Legal. 

Website: https://www.ssbb.com

Alvarez & Marsal (A&M) is a global professional services firm specializing in turnaround and interim management, performance improvement and business advisory services. A&M delivers specialist operational, consulting and industry expertise to management and investors seeking to accelerate performance, overcome challenges and maximize value across the corporate and investment lifecycles. Founded in 1983, the firm is known for its distinctive restructuring heritage, hands-on approach and relentless focus on execution and results. To learn more, visitwww.alvarezandmarsal.com

Website: https://www.alvarezandmarsal.com

Mr. Crocker's practice focuses on regulatory and enforcement aspects of international business. Mr. Crocker has over 30 years' specialization in sanctions, export controls, foreign direct investment reviews by the Committee on Foreign Investment in the United States (CFIUS), anti-money laundering, Foreign Corrupt Practices Act (FCPA) and technology cooperation issues. He has particular expertise in the Office of Foreign Assets Control (OFAC) regulations, Export Administration Regulations (EARs) and the International Traffic in Arms Regulations (ITAR). 

Mr. Crocker has assisted some of the largest global financial institutions, as well as foreign and domestic companies in the technology, pharmaceuticals, biotechnology, chemicals, telecommunications and defense sectors, in policy counseling, regulatory interpretation, compliance, internal investigations and civil/criminal enforcement matters before the Departments of the Treasury, Commerce, State, Homeland Security, Defense and Justice. He also represents clients before Congress.

Jonathan is a manager in EY’s Financial Services Advisory practice. He joined the firm in 2012 after more than seven years with the US Government, including assignments within the Treasury Department, State Department and US Senate. In his current role, Jonathan advises global financial institutions on sanctions and money laundering risks, as well as the effectiveness of their compliance programs and system processes. While at the US Treasury, he was a senior policy advisor in the Office of Terrorism and Financial Intelligence, where he played a key role in developing and implementing strategies relating to economic sanctions and advising senior leadership on matters of national security policy. 

Jonathan speaks frequently before global industry groups on matters concerning financial sanctions. He recently co-authored an article entitled, Understanding sanctions: How to identify risk factors. 

Carol Spawn Desmond is counsel to Satterlee Stephens Burke & Burke LLP.  Her practice consists of financings and other commercial transactions; regulatory guidance to issuers, banks, investment advisers and NRSROs; and intellectual property and data protection advice to international clients. She is a frequent panelist for the Business Division of the New York State Bar Association (Securities Regulation Committee) and speaks widely on regulatory issues to financial services groups and other practitioners. Ms. Desmond is admitted to practice in the State of New York and in the United States District Court for the Southern and Eastern Districts of New York. Ms. Desmond earned her J.D. from Georgetown University Law Center, where she served as the Topics Editor of the Immigration Law Journal. Ms. Desmond earned a B.A., magna cum laude, from the University of Miami, Coral Gables, Florida.

 

  • Donna DeMartino is a Senior Director with Alvarez & Marsal's Dispute Analysis & Forensic Services in New York where she is currently the lead in the BSA/AML and Compliance Technology Service Line. She brings more than 20 years of management consulting experience in leading and managing large, complex technology implementation efforts, investigations, BSA/AML Look Backs and Forwards and has supported compliance, forensic, dispute and quarterly audit projects with a specific focus on fraud detection.
  • Ms. DeMartino has spent the last 13 years focusing on regulatory and compliance engagements within the financial services industry, specifically banking and brokerage. While she specializes in compliance related technologies, such as interdiction (OFAC), transaction monitoring applications, case and SAR management systems, she also has in-depth expertise in the policies and procedures that are captured in the business rules within the compliance's technology infrastructure (i.e., dynamic risk scoring, customer and enhanced due diligence, wire transfer transactions, e-payments, etc.).
  • From a project management perspective, she has provided management oversight to customer remediation efforts, transaction monitoring reviews and assessments, gap analysis, sanction reviews, work flow and case management product selections, testing, refinement and implementations. In addition, she has assisted clients in calibrating their thresholds and settings within the compliance technologies to accommodate enhancements and augmentations made to the financial institutions' business models.
  • Prior to joining A&M, she was at Deloitte, Pinkerton Consulting and Booz Allen and Hamilton.
  • Ms. DeMartino earned a dual bachelor's degree in arts and sciences from Syracuse University with honors. She is a frequent speaker on topics related to technologies within compliance and has written several articles on the subject.
  •  

 

  • Peter Kwan is a Director in the Forensic Technology Services practice within Alvarez & Marsal's Global Forensic and Dispute Services line of business in New York. He brings 10 years of consulting experience in the management and implementation of data analytics efforts, BSA/AML Look-back reviews, and strategic database design and implementations
  • Currently, Mr. Kwan is performing post-implementation testing for the Internal Audit department of a mid-Western based U.S. bank using the Actimize system. Previously, Mr. Kwan worked on a BSA/AML technology assessment for a large bank in Mexico offering US Dollar repatriation services to their customers.  While at A&M, he has helped clients with regulatory driven Look-backs mandating the screening of transaction counterparties against governmental lists (e.g. OFAC) and the identification of reportable suspicious transactional activity, performing BSA/AML technology assessments on their usage of BSA/AML automated tools (YellowHammer BSA, AML Manager, Banker's Toolbox), and assisted with an implementation of the CDD module of NICE-Actimize.
  • Prior to joining A&M, Mr. Kwan worked in the Data Management Group at PricewaterhouseCoopers (PwC). His past project work has focused primarily on the following areas for clients in the Financial Services industry:
    • Anti-Money Laundering:
      • Designed name matching techniques to compare information from wire remittances against the OFAC and sanctioned country lists and performed data analytics to identify transactions with High Risk jurisdictions (specifically Iranian U-Turn transactions) for a large Japanese bank;
      • Implemented interim transaction monitoring tools to identify potential SAR reportable activities for two different South American based banks and the embassy banking division of a global Financial Institution;
      • Performed unification of customers from different lines of business and an enterprise customer risk ranking for a Mid-West regional bank in the U.S.;
      • Performed data modeling, database development, and data analytics for several multi-year look-back engagements;
      • Conducted data quality and integrity reviews of transactional and customer level data;
      • Assisted in the refinement and optimization of AML rule/scenario thresholds
    • Regulatory Reporting: Design & development of an automated data ingestion and reporting tool to generate quarterly FDIC loan loss reports for a mid-Atlantic regional banks
    • Audit Automation: Development of tools to automate Partner Capital Allocation testing for hedge fund audit teams
    • Business Intelligence: Design of a dimensional data model to convert & store and report 5+ years of the data from the Financial Planning & Analysis group of a publicly trade Hedge Fund/Private Equity client. Designed Business Objects specifications to leverage the data model for reporting

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