MEETING THE HIGHER BENCHMARK

The US perspective
Professor Jimmy Gurulé
Former Under Secretary (Enforcement), U.S. Department of the Treasury

Following the terrorist attacks on America, the US administration has placed efforts to deny funds to terrorists, and prevent money laundering at the top of its agenda. The lead US agency responsible for this is the US Treasury. This session describes how the treasury is prosecuting its campaign, considers the wider agenda of the US administration, and examines some of the main areas where the agency cooperates with foreign counterparts. Also, this session examines how sophisticated anti-money-laundering systems can be adapted to work in small economies.

Managing reform
Richard Pratt
Director General, Jersey Financial Services Commission

After years under the international spotlight, leading offshore centres like Jersey are at the forefront of efforts to strengthen anti-money-laundering (AML) systems. In many cases they face challenges which larger countries do not, and apply, in some cases, higher standards. Richard Pratt, director general of the Jersey Financial Services Commission here details how a small jurisdiction can meet the challenge of protecting itself from abuse by money launderers and criminals and satisfy the international community that it is doing so.

Panel discussion/workshop: building an effective AML system
Dr Kern Alexander
Judge Institute, Cambridge University

This panel discussion/workshop builds on the experiences of participants in their national jurisdictions. Delegates will be expected to give a short account of their national regulatory system and their institution’s position within it, and consider the priorities and challenges they face as a regulator of the payment and financial system.

PROTECTING THE PAYMENT SYSTEM

Protecting the international payment system
Speaker to be confirmed

Recent policy proposals have focused on the possibilities for abuse of the international payment system, and in particular on putting in place effective controls on electronic payments and wire transfers. For central banks, which oversee and operate national and cross-border payments, this raises profound issues. Requirements that originators are identified, and the requirements of new US legislation like the PATRIOT Act may force systems and procedures to be redesigned. How can financial market authorities react? Stefan Gannon, from the Hong Kong Monetary Authority, considers the key issues at stake.

Roundtable - Implications for payment system oversight

The workshop looks at some of the wider issues raised for payment system design, comparing different national approaches and examining in turn the key risks which are present in this area.

Commercial banking perspective
Sally Scutt
Deputy Chief Executive, British Bankers Association

The first line of defence against money laundering or the financing of terrorism must be the individual financial institutions who are in direct contact with customers. Many global financial institutions are undertaking root-and-branch reform of their procedures, especially with regard to certain firms and transactions – including private banking, correspondent banking relationships and shell banks – perceived as high risk. This session considers the new safeguards which these international institutions have put in place, how this affects their foreign branches and subsidiaries, and how much of this experience is more widely applicable.

How to manage on-site AML audits of financial institutions
Andrew Clark
Partner, PricewaterhouseCoopers

Following the introduction of the eight new FATF recommendations on combating terrorist financing, and new legislation such as the USA PATRIOT Act, the number of real practical difficulties for financial institutions seeking to fulfil their obligations is increasing. It is important for financial market authorities to be aware of some of the practical problem areas with the existing anti-money-laundering regime, which will be covered by this session. Rather than relying on auditors, financial institutions, central banks and supervisory agencies will, increasingly, have to be proactive in their oversight of financial institutions, and employ technological solutions to combat money laundering and the financing of terrorism. What will this involve?

LEGAL ISSUES IN ANTI-MONEY-LAUNDERING

Asset freezing – US and UK approaches
Richard Newcomb (invited)
Director, US Office of Foreign Assets Control, Dept. of the Treasury
Khawar Qureshi
Barrister and Treasury Counsel, Serle Court, Lincoln’s Inn

At the core of an effective anti-money-laundering regime is the ability of responsible authorities to act to identify, report, freeze and confiscate assets identified as suspicious. This session examines some of the issues arising from these obligations. How do US and UK authorities approach them? The US Office of Foreign Assets Control (OFAC) plays a lead international role in this process. This examines the legal and practical challenges which result from efforts to freeze suspect funds, and the scope for international cooperation and coordination.

Anti-corruption offences
Charles Proctor
Partner, Tite and Lewis Solicitors

Under the OECD convention on combating bribery of foreign public officials in international business transactions it is now, in many countries, an offence to bribe an official or director of an overseas govern-ment or company, even if all of the relevant actions occur outside this country. The convention also places on banks (and, therefore, their regulators) an obligation to look out for monetary transfers which may rep-resent the proceeds of corruption. How can these responsibilities be discharged.

International cooperation
Speaker to be confirmed

Cooperation between national regulators and investigators is essential in the fight against terrorist funding and money laundering. What is the role of financial intelligence units? How is the balance between formal and informal cooperation best maintained? This session will address how networks of investigators, judicial authorities, regulatory agencies and law enforcement agencies can best cooperate internationally.