Conference Day Two – 23rd August 2018
9:00 am - 9:20 am Coffee & Registration
9:20 am - 9:30 am Conference Opening – Remarks from the Conference Chairperson
9:30 am - 10:10 am Case Study: Learning from International examples to Predict the Impact of Tranche 2 RegulationsKate Reid - Director of Phase II Implementation, New Zealand Department of Internal Affairs
In the 2015/2016 Financial Year alone, Australia received approximately $1Bn in suspicious transactions from foreign buyers across the real estate industry, coupled with a further $13m in high value goods confiscated by the police, which had been purchased with laundered money. In response, the Australian Government has announced a broadening of its AML/CTF regulations to apply to a broader range of industry professionals, referred to as Tranche 2. Across the Tasman, New Zealand has already begun implementing its own set of broadened compliance regulations, referred to as Phase 2. With the initial stages of Phase 2 having been implemented in July of this year, the New Zealand example gives Australian institutions and professionals an idea of what to expect when our own Tranche 2 laws arrive.
- Drawing on International methods to improve your own AML/CTF capabilities
- Using international context to better adapt to legislative change
- Reviewing enforcement methods and approaches to fraud
Kate ReidDirector of Phase II Implementation
New Zealand Department of Internal Affairs
10:10 am - 10:40 am Panel Discussion: Tightening Whistle-blower Procedures to Adapt to Incoming RegulationRobert Wyld - Former Co-Chair, International Bar Association (IBA), Anti-Corruption Committee
Andrew Lawrence - Senior Legal Officer- Fraud, Security and Integrity Reform Branch, Attorney- General’s Department
A suite of whistle-blower protection legislation has been introduced, with a view to reducing financial crime from within organisations. The legislative amendments broaden protection for corporate and financial sector whistle-blowers, and toughen penalties for organisations breach these regulations. With the advent of these legislative changes, implementing or updating current whistle-blower protection frameworks is vital to ensure an organisation’s compliance, as well as to avoid fines of up to $1m for single breaches of the legislation. This panel discussion consists of experts from legal and corporate backgrounds, and will deal with the implications of the legislation as well as how best to ensure that your own whistle-blower framework is compliant.
- Updating whistle-blower protection framework to comply with new laws
- What this legislation means for the future of internal reporting procedures
- Relying on whistleblowing to combat internal fraud
Robert WyldFormer Co-Chair, International Bar Association (IBA)
Andrew LawrenceSenior Legal Officer- Fraud, Security and Integrity Reform Branch
Attorney- General’s Department
10:40 am - 11:00 am Morning Tea
11:00 am - 11:40 am Improving Institutional AML Practices to Reduce Capital Market Crime RiskDiana Clarke - Director- Regional AML Compliance, Royal Bank of Canada Capital Markets
With AML monitoring costs alone expected to hit US$37b for 2018 across top-tier banks and capital markets firms, compliance remains a significant cost for Financial Institutions across the globe. A key facet of compliance monitoring are an organisation’s KYC and transaction monitoring processes, which aims to identify and red-flag high risk customers to prevent financial crime before it can be committed. This session will focus on best practice in optimising your KYC procedures and transaction monitoring as they relate to institutional customers, as well as adapting to the specific risk demands of a capital markets operating environment.
· Optimising KYC processes for institutional clients
· Improving monitoring efficiency to reduce compliance costs
· Better understanding the risk profile of operating in capital markets
Diana ClarkeDirector- Regional AML Compliance
Royal Bank of Canada Capital Markets
11:40 am - 12:20 pm Enforcing a Top-down Culture to Ensure Regulatory ComplianceSteven York - GM, Group Compliance and Chief Security Officer, Bank of Queensland
In order for organisations to make sure they meet their regulatory obligations fully, a culture of compliance is paramount. Whilst systems and procedures are important in maintaining compliance, they are ineffective if they are not consistently utilised. This session will emphasise the importance of an executive-led culture of compliance, discussing how leading by example will have a widespread and measureable effect throughout the whole of your organization.
- The organization benefits of compliance-focused leadership
- How inconsistent leadership leads to inconsistent compliance
- Systems and attitudes as the twin pillars of compliance
Steven YorkGM, Group Compliance and Chief Security Officer
Bank of Queensland
12:20 pm - 1:20 pm Lunch Break
1:20 pm - 2:00 pm The Importance of a Tight Reporting Framework: How Building Positive Relationships Between Regulator and Industry is Vital to Tackling Financial Crime
Information sharing has emerged as one of the principle methods to staying ahead of the arms race against financial criminals. Failure to do so can also come with significant costs, as last year’s $45m civil penalty against Tabcorp highlights. This session will examine the organisational benefits of building close relationships between Financial Institutions and regulators. Issues to be discussed include: best practice in building clear lines of information reporting, as well as the importance of dedicating resources to maintaining those working relationships in order to maintain compliance.
- Building working systems for information flow to ensure compliance
- Collaborating with other organisations to improve AML/CTF capabilities
- The costs of noncompliance
2:00 pm - 2:40 pm Panel Discussion: Keeping Ahead of Financial Crime by Identifying Emerging Criminal MarketsSerena Lillywhite - CEO, Transparency International
Scott Vincent - Senior Manager Financial Crime Risk, NAB
Paul Gifford - Manager, Risk and Financial Crime, QSuper
Two markets which have become increasingly lucrative for financial criminals are Australia’s gaming and real estate industries. According to the Financial Action Task Force, real estate accounts for 30% of criminal assets confiscated yearly. Australia has seen a 36% increase in foreign investment in real estate over the last year, with foreign investment accounting for a third of real estate transactions in 2017. China alone invested close to $32Bn in Australian real estate in 2017. This panel will discuss the emerging threat of financial crime in the real estate market, as well as the implications of incoming Tranche 2 regulations.
- Understanding the implications of emerging areas of financial crime
- Identifying early-stage risk and introducing mitigation strategies
- Looking at the impact of Tranche 2 regulatory reforms
Scott VincentSenior Manager Financial Crime Risk
Paul GiffordManager, Risk and Financial Crime
2:40 pm - 3:10 pm Afternoon Tea
3:10 pm - 3:50 pm Integrating Compliance Into Fundamental Staff Training to Reduce Regulatory BreachesTracey O’Keefe - Fraud Risk Manager, Auswide Bank
The best compliance processes and initiatives in the world can prove ineffective if they not reflected in staff practices. As such it is of vital importance to integrate compliance into your basic staff training, and to make it a core capability of all roles within your organisation. By ingraining compliance in your staff from day one, you avoid the pitfalls of compliance being viewed as an extraneous obligation, and significantly reduce the risks of compliance breaches. This session will focus on the importance of integrating compliance into all staff training, as well as methods to do so.
- How staff perception of compliance procedures can directly reduce your organisation’s risk of regulatory breaches
- The importance of organization-wide education to ensure compliance
- Making compliance a core capability of your staff
Tracey O’KeefeFraud Risk Manager
3:50 pm - 4:50 pm Closing Panel Discussion: Leveraging Technology to Mitigate Emerging ThreatsPhillimon Zongo - Head of IT Risk and Security, Crestone Wealth Management
Technology is developing at a rapid pace, and where there is potential for exploitation, financial criminals utilise this technology. Whilst concepts like “blockchain” and “quantum computing” may have once seemed like far-off speculation, they are now far more present and immediate. Cryptocurrency is more widespread than ever, peaking at over $5Bn USD in transactions in a single day in December, 2017. Quantum
computing is still an estimated two to five years away from widespread use, but with around $1Bn invested in it over 2016, it is a developing technology. If early metrics are to be believed, it has the potential for massive efficiency increases in risk management and fraud detection capabilities, as well as a heightened security risk if utilised by criminal organisations. This panel discussion will focus on the future of technology and its ongoing role in both financial crime and solutions to it.
Phillimon ZongoHead of IT Risk and Security
Crestone Wealth Management