risk based aml-supervisionfiles.acams.org/pdfs/2016/cenor10182016_presentation.pdf · the panama...
TRANSCRIPT
![Page 1: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/1.jpg)
Risk based AML-supervision
Anti-Money Laundering Division
Finansinspektionen
ACAMS Nordics Chapter
18th October 2016
![Page 2: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/2.jpg)
Risk based supervision
![Page 3: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/3.jpg)
Risk based supervision
![Page 4: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/4.jpg)
Step 1
Risk assessing the AML/CFT,
nationally and internationally
Risk assessing threats and
vulnerabilities within sectors
![Page 5: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/5.jpg)
Step 2
Using statistics and gathered
information, e.g. SARs, surveys,
periodic reporting and
information sharing between
authorities
Risk assessing the companies
within the sectors chosen
Producing results on where to go
and where supervision is needed
the most
![Page 6: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/6.jpg)
Step 3
Gathering information about
companies e.g. risk
assessments, mitigating
actions
Evaluating where key areas
might be and where
supervision is needed the most
Conducting supervisory
investigations
![Page 7: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/7.jpg)
Step 4
Monitoring the results of the
supervision
Monitoring the companies remediation
plans
Gaining experience which will
contribute to future risk assessment
and selection of companies supervised
![Page 8: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/8.jpg)
Risk based supervision
![Page 9: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/9.jpg)
Risk based investigation
Risk based investigation
![Page 10: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/10.jpg)
Risk based investigation
Create hypothesis based on risk exposure, modus operandi of
money laundering or financing of terrorism, etc.
Create questions depending on the hypothesis
Base the requests, interviews, samples etc. on the questions and
hypothesis
The questions are then used in the investigation to assess
whether the financial institution can manage the hypotheses
![Page 12: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/12.jpg)
The Panama Papers
Example of hypothesis
• Beneficial owners use offshore structures to take advantage of the anonymity in order to evade tax or hide illegally earned money
• Foreign companies or beneficial owners uses financing of e.g. construction projects to launder money
• Companies use accounts of offshore entities to corruptly obtain government contracts in states with high levels of corruption
![Page 13: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/13.jpg)
Steps in the Investigation
Letter of notification (aviseringsbrev)
Request of information
(begäran om info)
Possible request of additional information (kompletterande begäran)
On-site visit 1-4 days (platsbesök)
Verification document (avstämningsskrivelse)
Final report (slutskrivelse) or
sanctions procedure (sanktionsprocessen)
![Page 14: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/14.jpg)
Requests
Internal routines, risk assessments etc
Samples of transactions, customer data, scenarios etc
Due diligence, transaction alarms, SARs, audit log, statistics etc
Reports from 2nd and 3rd line to the management and board
![Page 15: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/15.jpg)
On-site visit
Presentation (as requested)
Questions
Interviews with management and employees
Access to systems and documentation
![Page 16: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/16.jpg)
Verification document
The relevant law (aktuella bestämmelser)
The findings (iakttagelserna)
The preliminary assessment (preliminär bedömning)
But it all starts at the on-site visit (platsbesöket)
![Page 17: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/17.jpg)
Sanctions Procedure
![Page 18: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/18.jpg)
Steps in the Sanctions Procedure
Due to the deficiencies the
investigation could escalate
into the sanctions procedure
The FSA’s responsible legal
division will evaluate the
findings
FSA will always communicate with
the company before any decision
Warning, remark, administrative
fine and withdrawal of
authorization to conduct
operations
![Page 19: Risk based AML-supervisionfiles.acams.org/pdfs/2016/CENOR10182016_Presentation.pdf · The Panama Papers Example of hypothesis •Beneficial owners use offshore structures to take](https://reader034.vdocument.in/reader034/viewer/2022042302/5ecd39b9e758c102e87a9045/html5/thumbnails/19.jpg)