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Financial Crime learning academy

October 2018

kpmg.com/uk

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The importance of Financial Crime learningFinancial Crime (‘FC’) risks, criminal methods and the resulting regulations continue to evolve at a rapid rate. This has led to an increasingly exposed trading environment where organisations are constantly expected to stay one step ahead of criminality. While organisations have prioritised the build of compliance control frameworks, the importance of a robust learning programme has been overshadowed. A well defined FC learning programme can help:

Financial Crime

learning

Meet regulatory expectations

Regulators have a clear expectation that learning provided to employees is of the highest quality: impactful at the front line, bespoke to role, business area and processes, and underpinned by communications and cultural enablers to ensure positive behaviours

Enable a growth platform

Fostering a compliant FC culture helps enhance customer loyalty and can reduce operational costs, resulting in bottom line growth

Promote culture change

FC risk should be considered by staff in every business decision, and it is vital they are applying appropriate judgement. A culture where staff feel empowered to manage risk, supported from the top, is integral to tackling criminal activity

Increase efficiency

The right capability and knowledge can deliver increased efficiency and quality of output

Tackle the evolving criminal threat

Increased complexities in criminal typologies and methods has increased the need for well trained staff to avoid exposing firms to FC risk. Firms need to be able to respond quickly to external change and be innovative in FC risk management to enhance their reputations with customers, regulators and shareholders

© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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KPMG FC Academy: end-to-end learning providerKPMG is one of the largest learning providers in the UK, which places us in a unique position to leverage our expertise to address your learning needs. Whilst we understand that learning is the foundation of upskilling colleagues, additional initiatives delivered alongside can impact behaviours and provide a truly transformational learning experience. Our offerings include:

KPMG Learning solution offering

E2E Learning Service— We have a dedicated learning service team providing end-to-end services for all learning

needs, including:– Strategy design and functional transformation for the L&D function.– Design, development and delivery of custom and catalogue learning across key functional

areas.– Selection, architecture and implementation of learning technologies.

Strategic alliances— KPMG has a wide range of alliances, managing multiple consortia including the Civil Service

which provides learning to 400,000 learners. — Our alliance with Cognisco helps measure the effectiveness of learning and mitigates

people risk. — We also have strategic relationships and alliances with universities, specialist learning providers,

and learning technology market leaders to enable us to fulfil the wide needs of our clients.

Embedding learning— Learning is not a one off event. There are a number of activities that can be employed to ensure

learners and the wider organisation are bought in and the learning is truly embedded, including:– Communications providing a consistent narrative to explain the case for the learning.– Ongoing touchpoints following the learning, including bite sized reflective exercises.– Capability frameworks which can highlight learning gaps and areas for further development.– Digital solutions that track learnings across the firm to provide MI to key stakeholders.

Accreditations and Certifications— Benefit from KPMG recognised certifications programme.— We also have recognised accreditations with leading universities for our fraud and

leadership programmes.

FC Learning Suite— We have created a suite of FC learning programmes, which are all encompassing and provide a

holistic view of Finance Crime. Whether bespoke or off the shelf, KPMG keeps the needs of the end user in mind.

— Our content is developed in collaboration with industry leaders, market leading Subject Matter Experts (SMEs), digital colleagues and external partners that drive engagement and knowledge retention.

© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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Financial Crimelearning journeyThe below diagram illustrates a typical learning journey. Our bespoke blended learning products can range from advanced instructor led learning to bitesize digital learning which incorporates market leading features such as gamification, video content and scenario based learning, to supplement your learning requirements.

Health-check

Perform upfront health checks to understand at a minimum :

— Existing learning population and content including its relevance to regulatory expectations

— Training needs analysis – including role analysis questionnaires and baselined against existing learning

— The different customer touch points and FC control functions

— The Financial Crime risks as applicable to business lines or businesses

— Review strategic priorities – tone from the top

Delivery

Choose from:

— Digital learning platform and environment (gamification, social learning, videos/multimedia and eLearning)

— Instructor Led Training (ILT) — Micro learning — Workshops — Virtual classroom — Handbooks — Guest speakers/lunch and learns— Scenario based learning &

personalisation

Services

Our bespoke services include:

— Learning strategy – design and delivery— Learning design and build content — Measure impact of learning — Evaluate and refresh content — Behavioural change interventions — Reporting and monitoring progress — End-to-end build of in-house Learning

and development (L&D) capabilities

Course Catalogue

Leverage existing learning content or create a tailored curriculum for targeted audience:

All staff

— FC fundamentals— What Financial Crime means to you — Regulatory visits and general

awareness sessions

Management — FC fundamentals— Financial Crime modules (advanced

Practitioners learning)— Targeted specialist learning courses — Regulatory visits and general

awareness sessions

Specialist— FC fundamentals— Financial Crime modules (advanced

Practitioners learning)— Targeted specialist learning courses — Regulatory visits and general

awareness sessions — Technical coaching

Leadership— FC fundamentals— Leadership coaching

Learning Transformation

To embed learning and make it “stick”:

— Communications and engagement plan pre and post the learning

— Leadership awareness sessions— Competency framework/ skills matrix— Culture diagnostics

Testing & Management Information (MI)

Benefit from:

— KPMG course completion certificate — Question banks— Real life/anonymised case studies — On-going MI including completion

reporting, test score and high risk areas— Full feedback loop to enhance and

target learning content

© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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Our learning experience and credentials KPMG knows learning. From advising on learning strategy, operating models and technology, todesigning and delivering innovative learning solutions, through to end-to-end learning managedservices. KPMG has worked with some of the largest global organisations to transform theirlearning offering, and to deliver more value through learning.

What we have delivered so far

Providing Learning Managed Services for

400,000 Civil Servants in

the UK.

Trained

120,000staff on AML for a global universal bank, leveraging our KPMG member firm network

End to End transformation of the Learning Operating Model for a global life sciences business

Corporate university

strategy for a US Investment Bank

94% completion rate fornon-mandatory digital anti-financial crime learning

Provided leadership development to over

3,800 across theNational Health Service.

Created the vision & business case for US financial services business to transform L&D

Reduced the cost perhour of training for the UK

Civil Service by 22%

Our digital offering

KPMG designs and builds a range of innovative digital learning. There are a number of techniques we employ to ensure the learning is as engaging as possible:

GamificationTimed answers, “lifelines” and scoring can all be used to actively involve the learners. Gamification can promote engagement through competition and repeat of the learning to gain a higher score.

Simulated ExperienceApplying newly acquired knowledge to real-life scenarios allows learners to practice their understanding of the content and aids retention. Branched scenarios allow a learner to select a course of action and see how it plays out virtually. This provides a more personalised learning experience based on their areas of development.

Micro learningMicro learning is designed to quickly provide precise knowledge at the moment of need, meaning less impact on BAU. The learning is easy to retain, driving an immediate impact on core behaviors. Studies have shown that learning in smaller bit-sized pieces can improve the knowledge transfer by 17%.(Source: Journal of Applied Psychology)

StorytellingShort, real action or animated videos illustrate key points visually, through the use of metaphor or realistic storytelling. Narration provides further depth to the story and can be used to explain complex subject matters, aiding retention of learning.

© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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Financial Crime learning suiteBelow is a sample of our Financial Crime learning curriculum. We have the capability to build bespoke user orientated learning, using our Subject Matter Experts with advanced practitioner and regulatory knowledge. We can also provide off the shelf learning, hosted on our own or clients’ online learning platforms to address any immediate learning gaps.

Category 1: Fundamentals

— Level 1: FC Fundamentals

— Key regulation and control expectations

— Emerging threats/typologies/red flags

Category 2: Financial crime component

KYC Due Diligence

— Level 2: Customer Due Diligence including or standalone learning on:

— Identity and Verification (ID&V) requirements

— Customer risk screening (Adverse Media, Sanctions & PEPs) requirements and best practices

— Requirements for PEPs and other beneficial owners

— Due diligence requirements for complex entities i.e. Special purpose vehicles/Correspondent clients

Transaction Monitoring

— Level 2: Introduction to Transaction Monitoring

— Alert investigations training – policy driven

Sanctions

— Level 2: Introduction to Sanctions Compliance

— Alert investigations training – policy driven

Anti Bribery and Corruption (AB&C)

— Level 2: Anti Bribery and Corruption

Category 3: Business role/topic specific

— Correspondent banking based Money Laundering

— Trade based Money Laundering

— Corporate Criminal Offence (CCO)

— Counter Terrorist Financing (CTF)

— Trader surveillance

— Regulatory reporting

— Cyber crime

— Market abuse

Category 4: Regulatory visits/general awareness

— Preparations for regulatory visits

— Role based procedural learning

Category 5: Leadership learning

— Senior management awareness briefings

— Board awareness sessions

— Risk in Reality: an immersive learning experience available both live and digitally. It places participants in a crisis situation and evolves as they make decisions and react to various stimuli.

Risk in Reality stimuli:

Contact

Faraaz NakviDirector, FS Forensic

M: +44 (0)7768 723919E: faraaz.nakvi@kpmg.co.uk

Savvas KoufouDirector, FS People Consulting

T: +44 (0)7766 361011E: savvas.koufou@kpmg.co.uk

kpmg.com/uk

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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