THOMSON REUTERS ACCELUS

The Future of RegulationThe Cost of Compliance vs The Cost of non-Compliance

CHALLENGES FACED BY THE COMPLIANCE FUNCTION

COST OF COMPLIANCE SURVEY

• Thomson Reuters polled more than 600 practitioners across 70+ countries for our 2015 Cost of Compliance survey.

5

• Organizations are squeezed in between a complex, dynamic regulatory environment and budget limitations

6

Market Conduct and Fraud

Maintaining a Respectful Workplace

Code of Conduct

Risk Management

Anti-Money Laundering and Counter-Terrorism Financing

Prevention of Corrupt Practices

Healthcare, Education and more

Privacy, Confidentiality, and Information Security

Conduct Risk (Organizational Integrity and Culture)

RISK REQUIREMENTS Increasing gap between requirements and resources

COMPLIANCE CHALLENGES

COMPLIANCE OFFICERS’ VIEW OF THE GREATEST CHALLENGES IN 2014

CONSEQUENCES OF NON-COMPLIANCE

A CHANGING WORLD

SCREENING FOR AML

• Verify the identity of vendors, suppliers, clients, partners and employees

• Protect against unlawful relationships based on sanction and enforcement activity

• Understand business risks associated with Politically Exposed Persons

• Monitor adverse media

• Gain deep intelligence on emerging markets or during acquisition and partnership activities through Enhanced Due Diligence

• Monitor transactions for suspicious activity or behavior

WORLD-CHECK DATABASE INCLUSION CRITERIA

Named on an international or national sanctions site, arms or trade embargo

Listed on a law or regulatory enforcement or other government or financial authority / wanted site

Politically Exposed Person (PEP) and direct family member or close business associate of PEP

14

Global PEP Lists

Asset freeze, investment or travel ban. Global sanctions lists.

Global Enforcement and Warning Lists

CRIME COVERAGE

Aircraft Hijacking / Aviation Crimes

Environmental CrimesIllicit trafficking in stolen and other

goods

Price fixing / Illegal cartel information / Anti-trust violations

Arson ExtortionInsider Trading &

Market ManipulationRacketeering

Arms TraffickingFalsifying information on official documents

Migrant Smuggling / Slave Labor

Robbery (only high value)

Bribery & Corruption Forgery Money Laundering Securities Fraud

CheatingFraud /

Embezzlement / Theft

Narcotics Trafficking (production and

distribution)

Sexual Exploitation of Children (for financial

benefit)Human Trafficking

Counterfeiting and Piracy of Products

Tax evasion / Tax fraud

Organised Crime Smuggling

Currency counterfeiting

Hostage Taking / Kidnapping (Political or Terror related or ransom demanded)

Pharmaceutical Product trafficking / Illegal distribution / Illegal production /

Banned / Fake medicines

Terrorism / Terror Financing

Cybercrime / Hacking / Phishing

Wildlife Crime Piracy (sea) War Crimes

0

5000

10000

15000

20000

25000

30000

35000

40000

Num

ber o

f TER

RORI

SM p

rofil

es

Terrorism Coverage

World-Check OFAC + UN + EU + UKHMT 0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

White WidowSamantha Louise Lewthwaite (Natalie Faye Webb)

The widow of 7/7 suicide bomber Germaine Lindsay

Fugitive from justice in Kenya and member of Al-Shabaab

4 January 2012 Kenyan arrest warrant – WC profiled the same day on media reports with fraudulent South African passport number

Interpol Red Notice – Sept 2013

First Rand and Standard Bank client

17

Fines paid by the Banks to date

THANK YOU

“As KYC due diligence requirements continue to grow exponentially, banks and financial institutions (FIs) - and their customers - are facing wave after wave of increasingly complex regulations and must find new and efficient ways to integrate these regulations into their day-to-day processes. While compliance is a legal requirement, they must also define the crucial line between satisfying the regulator and delivering a positive customer experience. The complexity of this challenge should not be underestimated”

.-Maureen McGuinness-Tel 011 775 3173-Cell: 082 578 3238-Maureen.mcguinness@thomsonreuters.com-Accelus.thomsonreuters.com