Groups Members: Chun-Lu Chuang, Dana Portley, Dora Chen, Eduardo Vieyra, Kara Schmitz, Hsing Fang...
Transcript of Groups Members: Chun-Lu Chuang, Dana Portley, Dora Chen, Eduardo Vieyra, Kara Schmitz, Hsing Fang...
MONEY LAUNDERING PREVENTION SYSTEM AT
BBVA INVESTMENTSGroups Members: Chun-Lu
Chuang, Dana Portley, Dora Chen, Eduardo Vieyra, Kara Schmitz,
Hsing Fang Wei
INTRODUCTION: DORA Introduction of the team members -
Dora BBVA Background – Dana Development History – Eduardo Company Analysis – Chun-Lu Industry Analysis – Hsing Fang Compliance Department Value Chain -
Dora Recommendation – Kara
BACKGROUND Money Laundering Definition Three processes of money laundering
1.From illegal to legal2.Many transactions3.Finance more illegal activities
Prevention
BBVA INVESTMENTS A subsidiary of BBVA, the eighth
largest bank in the world. Major clientele in Mexico and South
America. Established compliance department
and anti-money laundering policies
DEVELOPMENTAL HISTORY
DEVELOPMENTAL HISTORY
BBVA Investments, Inc. was incorporated in the United States in 1993 as a brokerage firm.
It is regulated by the Securities and Exchange Commission (SEC).
BBVA Investments is a member of the Financial Industry Regulatory Authority (FINRA)
The Company is located in Houston, Texas, in "The Galleria" Financial Center and has branches in Laredo, San Antonio, El Paso McAllen, and Tucson (to open in 2009).
BBVA Investments Inc. has specialized in providing brokerage services to international clients
DEVELOPMENTAL HISTORY
The anti money laundering systems in BBVA Investments consists of two systems- OFAC and Assist. OFAC is a proprietary system developed by the Information Technology department in BBVA Investments, and Assist was purchased from a third party vendor.
OFAC: This system comply with The Office of Foreign Assets Control regulations of the US Department of the Treasury administers.
ASSIST: Americas Software - TranSactIonS MoniToring- compliance software tool that allows a user to analyze suspicious activity
through account and transaction trend monitoring.
COMPANY ANALYSIS
STRENGTHS Strong ethical and compliance standard
since 1990. ASSIST and OFAC are flexible enough so
that it allows the IT department to perform some customization.
The OFAC system was developed by BBVA.
WEAKNESSES Not fully automated. May out grow the company needs.
SUCCESSES Assist: processing a large number of transactions.
OFAC: preventing people with poor reputation from laundering money.
No major system crash.
DIFFICULTIES It is really hard to keep the systems and
computer equipment up-to-date. Technology keeps changing. Terrorists are always trying to find a new
way to launder money.
MANAGEMENT LEVEL Operational Management level. First line of defense against
money laundering
IMPLEMENTATION EFFECTIVENESS Much more cost effective using
compliance information system OFAC security system : 1. minimizes human error2. more convenient and saves time ASSIST security system:1. user-friendly and easy to navigate
around 2. Keep current with newest regulation
INDUSTRY ANALYSIS
BBVA ANALYSIS Clients for BBVA Investment in South
America & Mexico. New entrants are a threatening force for
BBVA. Anti-Money Laundering System- Assist &
OFAC.
SECURITY SYSTEM FOR BBVA Assist: Assist is for detecting
transactions that deviate from the client’ profiles.
OFAC: OFAC System prevents BBVA Investments from conducting business with the individuals on the government’s and BBVA Group’s lists.
COMPETITORS UBS Investment Bank: Three global core
businesses are included wealth management, asset management and investment banking, and securities trading
Santander Bank: International financial services. It is also engaged globally in wholesale banking means of payment, asset management, insurance and private banking.
VALUE CHAIN
VALUE CHAIN MODEL Michael Porter invented the model in 1985.
Using manufacturing firms business processes.
Primary activities - directly add value to the firm.
Secondary activities - support and optimize the primary activities.
COMPLIANCE DEPARTMENT VALUE CHAIN Steps and Processes
Compliance Review
ComplianceTraining
OFAC List
FinanceInformation Technology
Public Affairs
Legal Services
Human Resources
Customer Score
Customer Profile
RECOMMENDATION
RECOMMEDATIONS Training needs. Investigate system from the acquired
firm Enterprise system The proposed system would include:
Customer Identification Program, OFAC system, Customer Due Diligence Program and Suspicious Activity Report system.
QUESTIONS