Dear Delegate,
 
HOW TO COMBAT MONEY LAUNDERING AND TERRORISM FINANCING

The fine line that regulators currently have to observe between their obligations to governments and their duties to their customers – vividly illustrated in the controversy over SWIFT’s transfer of personal banking data to American anti-terrorism experts – poses many difficulties also for central banks and regulators in the field of anti-money-laundering.

While the fight against money laundering has been aided by the establishment of laws and regulations which conform to international standards, central banks and financial regulators still face many practical challenges in this area.

The questions crowd in. How should the regulator balance the need for robust anti-terrorism frameworks with increasing demands for consumer privacy protection? With money laundering increasingly occurring across borders, what are the best ways to deal with extra-territorial issues?

Above all, how should central banks and regulators prepare for an external evaluation?

The examiners are a formidable bunch. The Financial Action Task Force, the US Treasury, the International Monetary Fund and the European Union are all calling on national regulators to upgrade their anti-money-laundering regimes. New requirements are continually added.

This training seminar pinpoints not only what financial policymakers must do to prevent the misuse of their banking/financial/payments system for money laundering or other criminal purposes, but also how they can address the international pressure to demonstrate compliance with standards.

It is a pragmatic course, intended to provide practical solutions for financial supervisors charged with ensuring commercial banks’ compliance, as well as in their capacities as overseers of national payments systems.

The seminar meets in roundtable format to allow an international group of delegates maximum opportunities to learn from each other. The elite panel of speakers comprises leading regulators, academics and practitioners.
The seminar will be chaired by Richard Pratt, former director general of the Jersey Financial Services Commission and now a regulatory consultant to the IMF and others, who writes and lectures on anti-money-laundering issues. All discussions are held in small groups to encourage lively and informal debate. The discussions are completely private, and only public policy officials are able to attend.

Key sessions examine:
• changing international standards for best practice in this area;

• key steps involved in upgrading and reforming national anti-money-laundering systems;

• meeting the expectations of international evaluators; and

• models for international cooperation between regulators and judicial and investigative authorities around the world.

Each topic allows participating supervisors and central bankers an opportunity to “benchmark” their work against best practice internationally and to exchange views with their peers in an informal setting.

For more information about the programme, please take a few moments to look at the detailed course contents presented on the pages which follow.

I look forward to welcoming you to Windsor.

Yours sincerely,
William Clarke, PhD, CBE
Chairman, Central Banking Publications

Introduction, course overview and participant introductions
Led by Richard Pratt

The issues facing banks in a risk-based regulatory environment
Hans-Peter Bauer
Former Head of Regulatory Relations at UBS, and Chairman of the Wolfsberg Group

Modern, global banks face immense regulatory and reputational risk in connection with money laundering. In response, they have allocated substantial resources to anti-money-laundering controls, and have also developed risk-based approaches to deploying these resources. This session will explore how international banks in practice defend against money laundering, the implications of regulatory requirements and how the actions of regulators can help or hinder these efforts.

Implementing anti-money-laundering defences
Andrew Le Brun
Director of International and Policy Division, Jersey Financial Services Commission (invited)

Regulation varies from country to country due to variations in the national legal framework, in the regulator’s scope, powers and duties, and in the regulator’s policies and style. But all regulators have to commit to a professional approach - to transparency, objectivity, a methodical approach, strong technical knowledge, continuous learning and high standards. This session will consider the approach of the UK’s Financial Services Authority to these challenges.

Mounting investigations: case studies
David Thompson
Former Head of Economic Crime, Northern Ireland (invited)

Cooperation between regulatory and law enforcement authorities must be at the heart of an effective AML regime. This session, drawing on the experience of the presenter as an investigator in Northern Ireland, will look at how investigations into money-laundering activities are conducted, drawing on case studies to highlight the use of information obtained through AML programmes and the role of the regulator in providing assistance.

Combating terrorist financing
Philip Robinson (invited)
Financial Crime Sector Leader, FSA

The desire to track, disrupt and impede terrorist financing has been a significant element in recent anti-money-laundering initiatives. But combating terrorist financing requires different powers and approaches. This session will look at how the FATF’s nine special recommendations on terrorist financing address these differences, as well as additional powers and requirements regulators and financial institutions need to consider in relation to terrorist financing. 

How should a regulator enforce the requirements?
A roundtable discussion, led by Richard Pratt

Information exchange and asset freezing
Richard Pratt

International cooperation in the form of information exchange, asset freezing, taking testimony and obtaining documents is essential to a successful defence against money laundering and terrorist financing. This session examines the standards required of bank supervisors and the issues that arise when they are asked to share information with others, including financial intelligence units and regulators from different sectors.

Priorities and action plans
Richard Pratt

In the final session, delegates will reflect on lessons learnt and identify priorities for action at national and international levels. This provides a chance for delegates to share views and experiences gained during the four days of the course and draw conclusions and action plans which they can take back to their home institution.