Standard Chartered Bank Academy to raise financial crime compliance standard
In spite of increasing regulations, financial crime is still on the rise globally. In this interview with Hope Moses-Ashike, Syed Khurrum Zaeem, Head, Transaction Banking, Standard Chartered Bank Nigeria gives insight into how the Bank is supporting correspondent clients in managing risks in areas such as customer due diligence, Anti-Money Laundering, Sanctions, Anti-bribery & Corruption and other related issues. Excerpt ..
Can you tell is what the Correspondent Bank Academy (CBA) is all about
Correspondent banking services form an essential part of the financial system, allowing account holders from a bank in one jurisdiction to benefit from the banking services provided by a different bank in a foreign jurisdiction. What we offer is the use our network to facilitate the client trade or cash business in different geographies.
We have network which is useful to our respondent banks in Nigeria. This is how these banks get access for their client to do business in locations where they are not present globally. This is what our facilitation as a correspondent bank does, is to make available our network to them.
In essence the workshop is aimed to enhance the participants ability to identify financial crime risks and help put in place mitigating controls to protect business.
What we want to focus on at this Academy is to educate the participants on the recent trends and evolving nature of financial crimes globally. We will also be discussing the enhanced legislations and scrutiny from the regulators globally in matters pertaining to financial crimes. We want to ensure that our respondent banks are made aware of new challenges and issues in financial crime risk globally via an interactive session. We will also be discussing compliance standards, and importantly how to ensure that financial institutions across the country are taking practical steps towards combating financial crime
The reason for the increased regulatory scrutiny is not farfetched as it is clear that financial crime seems to be on the increase despite the global efforts in combating same. As per United Nations, annual global criminal proceeds are estimated at US$2.1 trillion, of which US$1.6 trillion, or close to 80 percent, flows through the financial systems. All these in spite of the already established enhanced focus on financial surveillance makes it necessary to engage with client banks on what is expected from all parties to the international financial system.
How do your clients perceive this event and do you think this event will help achieve your aims in sanitizing the financial systems
This is not the first time we are holding the workshop. We had held a successful session last year in Nigeria and followed it up with a regional workshop for the Chief Compliance Officers of our Nigerian respondent banks in South Africa. This held in October 2015. It is part of our continued effort to increase awareness, while ensuring clients and stakeholders are aware both internally and externally. Through this event we are reiterating the Bank’s brand promise to be “Here for good”. We are using the initiative to assure clients that the Bank continues to support and implement strategies that emphasize financial crime prevention, whilst providing quality service for its clients”. We continue to operate as per our global standards within Nigeria for matters relating to financial crime control both in terms of processes and systems.
What kind of people are you expecting at the workshop
It is going to be full day session on the 27th of May and delegates scheduled to be in attendance are from all our commercial banking clients in Nigeria. Delegates have been nominated from various financial institution functions including Compliance, Operations and Correspondent Banking departments. It is our expectation that they too will in-turn cascade the knowledge gained at this session through to their respective organizations. As we all know, the first line of defence in the prevention of financial crime are the staff of the institution and not solely the compliance department.
Can you tell us about your Transaction Banking business and its progress in this area in Standard Chartered Bank
Our Transaction banking team is focused on providing tailor-made cash management, liquidity management, security & custody services and trade finance solutions to our corporate, institutional and financial institutions clients leveraging on our people, brand, expertise, product, systems and extensive network in Africa, Asia and the Middle East.
What we aim for is applying best practices, global products and systems to create local solutions to our customers here.
Our success and unique selling point is around using our network for our clients. We use our electronic channels and integrate same to make our network available to customers in Nigeria.
As our headquarters is regulated by the FCA in the UK, we comply with local and international regulation in ensuring that we play our part in the global approach to eradicating financial crime.
What is your assessment of Nigerian environment in terms of doing banking business
The banking business is evolving and if you look at the past 45 years, it has evolved significantly. In terms of technology and payment, it has leapfrogged. It has jumped very seriously, especially the way electronic payment mechanism is going.
I see banking sectors as fully developed. The CBN is quite involved in regulating of the bank in terms of capital adequacy and in terms of KYC and synergies as well.
Do you see any challenge in banking in Nigeria
The availability of foreign exchange is a challenge to all banks and more importantly the customers. I think what remains a key is how this is to be tackled to spur growth again as Nigeria has experienced in the previous years. It all started with oil prices and has to be tackled effectively to move forward.
Hope Moses-Ashike