Speaker 1: Today you will learn about the key areas of regulatory compliance that financial institutions must have in place in order to comply with the regulations within anti-money laundering and financial crime. So let's get right into today's video. Hi and welcome to FinCrimeAgent, I'm Marco Beranzoni and this is my channel where I'm talking about financial crime and anti-money laundering related topics. If you haven't subscribed to FinCrimeAgent yet, please hit the subscribe button right below and press the bell so you can get notified once new videos are going live on my channel. Check also the description of this video for very useful links and you can find also the FinCrimeAgent page on Patreon where with a small contribution you can become part of the Patreon community and receive some unique material like copy of the slides that are presented in my videos. So let's move into today's video. We are going to talk about regulatory compliance. You will learn about the high level areas where financial institutions must comply in order to stay within the regulations for financial crime and anti-money laundering. The information on regulatory compliance that I'm sharing with you on this video today are really high level, but if you are now learning about regulatory compliance for banking and financial institutions, it should give you a good sense of the key areas and then you can learn more about those in the description of this video where you can see a link of the Financial Conduct Authority guidance and this is where most of this information are taken from. The first point that I want to talk about is around systems and controls. We will go into the details of all of the different areas that are in scope for the regulatory compliance, but just to start with, it's important that you understand that there will be policies and procedures across all these different areas that financial institutions must maintain updated and easy to access by all the staff. So this is one point to include in the systems and controls, having strong policies and procedures in place across all the areas of financial crimes. Within systems and controls, financial institutions must be able to demonstrate that they have efficient systems in order to detect their potential risks and they must assess, therefore, those systems and monitor them regularly to make sure that they are fit for purpose. Out of all those systems, management information must be created and produced in order to escalate to senior management potential risks faced in money laundering and financial crime. So it's important that the quality of the data that is extracted out of those systems and reported to risk committees are accurate and are able to demonstrate when there are risks to be identified for that financial institution. Another area to highlight in here is the staff training. There are trainings rolled out to bank staff across the different areas of financial crime to make sure that they are updated with the new regulation and any changes with the operating model of the financial institutions. Those are compulsory trainings that staff would need to complete on a regular basis and demonstrate that they are updated with all those aspects. One more point within systems and controls is the risk assessment that must be produced to highlight how financial institutions can adopt a risk-based approach and how they prioritize on the financial crime areas to be focused on, at present and in the long term. Let's talk now about the different teams and how they operate to make sure the financial institution is compliant with the regulations. Let's start to talk about fraud, for example, which is mainly divided into two areas. The systems to identify potential fraud risks and protect customers and to stop transactions for fraud reasons, and then the internal fraud protection. This is where the financial institution would maintain under control their staff to make sure that there are no potential fraud activities being completed by their own staff. All those are completed by a number of systems and there will be procedures in place to demonstrate that they comply with the requirement for fraud prevention. One more area that I want to cover is the sanctions and asset freeze. Within this space, financial institutions must ensure that they are not doing business or they are not facilitating the transfer of funds with entities, individuals or countries that are included in the economic sanctions list. So systems must be in place in order to monitor those type of activities for customer name screening as well as transactions screening. When there is identification of a true match with any of those entities, then there is the obligation for the financial institution to complete the reporting to the relevant jurisdiction in order to comply with economic sanctions requirements. Those were the main elements I wanted to highlight regarding regulatory compliance. I have taken examples of those ones from the FCA guidance, so if you want to find out more about those specific areas, there is a very user-friendly document that is provided by the FCA and you can find this in the description of this video and learn even more about regulatory compliance in banking from there. I hope you have learned something new today and the contents that I shared were useful for you. If you have enjoyed my video, please share it with your contacts that may benefit from this type of content and remember to subscribe to FinCrimeAgent and press the bell to be notified once new videos are going live. With that, I'm at the end of today's video. Thank you for watching and until next time, see you soon. FinCrimeAgent.com