Anti-Money Laundering: Practical Guidance for Managing Regulatory Compliance in 2016
The Federal Banking Agencies (FBA) continue to focus attention on enforcement of the Bank Secrecy Act (BSA) and U.S. Anti-Money Laundering (AML) laws. Concomitantly, banks and other financial institutions are facing new, complex, onerously challenging, and often contradictory regulatory, supervisory, auditory, and compliance challenges. BSA/AML enforcement by the FBAs and the Financial Crimes Enforcement Network (FinCEN) have increased dramatically to try and control the ever increasing flood of illegal activities.
For several years, financial institutions have understood the need to identify, mitigate, manage, and report potential or actual Anti-Money Laundering transactions undertaken through their organizations. Yet, the on-going global and national effort to combat money laundering is a never-ending battle against often ingenious white collar criminals, hoodlums, and dangerous gangs constantly trying to find new ways to cash in on their illegal activities. Hand in hand with the flood of illegal activities, the regulators have increased the frequency and severity of sanctions on individuals, companies, and organizations.
Yet, despite all the efforts and enormous expenditures of money and personnel, the battle is almost futile. The consequences of compliance failure can be devastating even to a large bank. For example, Banamex (Citicorp) was fined $140 million in California for not having enough 'qualified and knowledgeable' fraud and anti-money laundering staff! Rather than comply, Citigroup closed all branches in California and Texas. In 2012, HSBC payed almost $1.9 billion in fines for allegations of money laundering through its Mexican subsidiary. It is a far greater challenge for smaller financial institutions to monitor and mitigate money laundering and to comply with all the regulations of numerous agencies. Recently, two individuals set up a collectors club to launder money from 83 million cracked accounts of JPMorgan Chase via Bitcoin transactions done through a small New Jersey credit union that they took over.
FinCEN's 2014 advisory emphasizes their expectations that financial institution BSA/AML compliance programs will be robust and enforced. These include requiring the direct involvement of managers and directors; having sufficient qualified compliance staff and related resources; adequately sharing relevant compliance information; understanding and being compliant with BSA/AML reporting requirements; and using competent and independent testing of their BSA/AML compliance programs.
It behooves every individual in a financial institution to understand the need to combat money laundering. Central to this is the need to educate all staff, from senior executives to tellers and administrative staff, to understand and help identify or offset money laundering schemes and practices. Until such organizational education is performed and robust anti-money laundering policies and procedures are enforced, all financial institutions will face grave risks of litigation and sanctions; often with devastating consequences.
In this two-hour, LIVE Webcast, a notable panel of highly experienced thought leaders and professionals assembled by The Knowledge Group will provide the audience with an in-depth overview of Anti-Money Laundering and provide Practical Guidance for Managing Regulatory Compliance. The speakers will review past and recent litigation and sanctions and recent developments in Anti-Money Laundering.
- Anti-Money Laundering (AML) - A Legal Primer
- Identifying Money-Laundering Schemes
- AML Enforcement and Compliance
- Recent Litigation Cases
- Recent Regulatory Developments
- Compliance Failures and Challenges
- Best Practices: Policies and Procedures
- Best Practices: Compliance
- Best Practices: Audits and Testing
Simon Moss, CEO and President
- It is questionable whether investments into AML technology and processes has actually reduced money laundering. Certainly it is not the laundering we saw prior to the US Patriot Act and its derivatives. Laundering has become more complex, more nuanced and more opaque.
- The result is current technology, processes and organizations, though placating regulators, are not necessarily stopping the modern money launderer.
- So how do you launder money in 2016? Simon Moss of Pneuron will share some ways on how to potentially launder after the large amount of investments made into AML technology and organizations. Focusing on new transaction types, entities and operating models that currently are not scrutinized as effectively as perhaps they should; on the systemic risks within the market that undermine individual firm activities and investments; the process within the AML Program and weaknesses in traditional Transaction Monitoring Systems; and some ideas on how to solve these challenges, quickly effectively and agilely.
Kathleen A. Nandan, Counsel
- Individual liability
- Regulators’ statements that they will pursue individual liability in corporate wrongdoing cases
- NYDFS proposed regulation
- DOJ’s Yates Memo
- Culture of Compliance (discuss FinCEN memo re the same, which will dovetail with discussion of Yates Memo)
- Take Aways
- Need to hire and support competent compliance staff
- Ensure that functions are not silo-ed (for ex. does fraud talk to AML?)
- Have policies/procedures to vet govt requests/subpoenas so that institution can do follow
Prof. William Byrnes, Assoc. Dean (Sp. Proj.)
Texas A&M University Law
- The Panama Papers and Their Impact
- FATCA and its related reporting and reporting forms
- The OECD Common Reporting Standard CRS differences
- FinCEN Proposed Rule (2014) Customer Due Diligence Requirements for Financial Institutions
- Incorporation Transparency and Law enforcement Assistance Act (ITLEA) of 2016
Who Should Attend:
- Banking and Finance Lawyers
- AML Lawyers
- Banking and Finance Professionals
- Anti-Money Laundering Officers
- AML Compliance Officers
- Risk Mitigation Officers
- Fraud Monitoring Officers
- AML investigators
- Other Interested Professionals
Simon Moss is the Chief Executive Officer and Board Member for Pneuron Corporation. In this role, Moss is responsible for overseeing the management, strategy and operations of the business on a global basis. Under Moss’ leadership, the company was founded, capitalized and the strategic platform developed, transforming Pneuron into a global technology provider. Simon brings over 20 years of successful strategic leadership at CEO, Partner and Board of Directors executive levels in the financial services industry, and has a proven track record as a successful entrepreneur.
Moss was most recently the CEO of Avistar and served four years with Mantas, moving the company into positive revenue streams and ultimate acquisition by Oracle Corporation. Previously, he served as Partner at Price Waterhouse Coopers, and was co-Founder of Risk Management Services Practice at IBM, all rounding out his extensive experience in financial services, trading and consulting practices. Simon excels in corporate revitalization and developing new go to market strategies for small emerging businesses as well as Fortune 1000 organizations. Moss is also on the Board of Directors for C6 Intelligence.
Simon Moss is the Chief Executive Officer and Board Member for Pneuron Corporation. In this role, Moss is responsible for …
Kathie Nandan is Co-Chair of Reed Smith's Anti-Money Laundering and Trade Sanctions team and a member of the firm's Global Regulatory Enforcement Group. She advises clients in a number of industries, including the financial services sector, on the conduct of internal investigations, anti-money laundering and Bank Secrecy Act requirements, federal asset forfeiture, the False Claims Act, the Financial Institutions Reform, Recovery and Enforcement Act, subpoena compliance, trial preparation, and other law enforcement-related concerns. Kathie is certified by ACAMS as an Anti-Money Laundering Specialist. Kathie joined Reed Smith in 2013 after serving more than a dozen years in the U.S. Attorney's Office in the Eastern District of New York where she was an authority on federal asset forfeiture, money laundering, and complex financial investigations. While at the U.S. Attorney's Office, Kathie served as Principal Deputy Chief, Civil Division, where she was second-in-command to one of largest civil divisions in the country, assisted with all aspects of management, and oversaw the office's civil affirmative practice, including health care and mortgage fraud. She also served as Deputy Chief and later Chief of the Forfeiture Unit, overseeing forfeiture recoveries of more than $338 million in fiscal years 2007-2011.
Kathie Nandan is Co-Chair of Reed Smith's Anti-Money Laundering and Trade Sanctions team and a member of the firm's Global …
Prof. William Byrnes, Texas A&M University School of Law, Author of Lexis’ Money Laundering, Asset Forfeiture & Recovery, and Compliance – A Global Guide.”
Professor William H. Byrnes, an Associate Dean of Texas A&M University School of Law, is “One of America’s leading experts on the global battle against money laundering, Professor William Byrnes is the lead author of Money Laundering, Asset Forfeiture & Recovery, and Compliance – A Global Guide.” Ray Camiscioli, Esq., Director, Product Strategy & Development for Tax, Accounting and Estates/Elder Law, LexisNexis, Inc. Money Laundering, Asset Forfeiture and Recovery, and Compliance- A Global Guide is an eBook designed to provide the compliance officer, BSA counsel, and government agent with accurate analyses of the AML/CTF Financial and Legal Intelligence, law and practice in the nations of the world with the most current references and resources. William Byrnes held a senior position of international tax for a big 6 firm and has been commissioned by a number of governments. He is developing a tax and legal risk management curriculum at Texas A&M University. He may be contacted at firstname.lastname@example.org.
Prof. William Byrnes, Texas A&M University School of Law, Author of Lexis’ Money Laundering, Asset Forfeiture & Recovery, and Compliance …
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Pneuron Corporation enables organizations to rapidly solve business problems through a groundbreaking, distributed approach that cuts across data, applications and processes. By targeting the right information at the data source, companies are no longer faced with the complex integration and infrastructure requirements of traditional approaches. Pneuron’s innovative Distributed Solutions Platform enables customers to accelerate business value and develop reports, products and applications in half the time and cost of traditional methods. Its distributed approach is non-invasive, technology-agnostic and leverages an organization’s existing infrastructure, avoiding the deployment risks and IT concerns that are prevalent in today’s centralized data projects. For more information, visit us online at: Pneuron.com, on Twitter or LinkedIn
About Reed Smith
Reed Smith is a global relationship law firm with more than 1,800 lawyers in 26 offices throughout the United States, Europe, Asia and the Middle East. Founded in 1877, the firm represents leading international businesses, from Fortune 100 corporations to mid-market and emerging enterprises. Its lawyers provide litigation and other dispute-resolution services in multi-jurisdictional and high-stakes matters, deliver regulatory counsel, and execute the full range of strategic domestic and cross-border transactions. Reed Smith is a preeminent advisor to industries including financial services, life sciences, health care, advertising, entertainment and media, shipping and transport, energy and natural resources, real estate, manufacturing and technology, and education. For more information, visit reedsmith.com.
About Texas A&M University Law
Texas A&M University is the fifth largest U.S. public research institutions and one of only 62 institutions to be designated a member of the prestigious Association of American Universities. Texas A&M is distinguished as one of the very few select academic institutions to hold triple federal designations as a land-grant, sea-grant and space-grant university. Texas A&M’s endowment exceed $10.5 billion, its annual system operational budget exceeds $4 billion with its research budget over $800 million. Texas A&M established its School of Law two years ago which in 2017 will begin offering a risk management curriculum for executives.