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Thursday, February 6, 2014 | 1:30 - 2:30 PM
Speakers:Mike Benardo, Jason Grasso, Ron King, John Solomon, Bill Ward
ConvergenceAchieving greater effectiveness and
efficiency by a unified approach
Chief, Cyber Fraud and Financial CrimesFDIC
Washington, DC
Mike Benardo
Chief, Cyber Fraud and Financial CrimesFDIC
Washington, DC
Jason Grasso
Chief AML OfficerScotiabank
Toronto
Ron King
Director, Threat FinanceWorld-Check
Washington, DC
John Solomon
EVP and Head of Financial Crime Risk ManagementUnionBank
San Francisco
Bill Ward
Chief, Cyber Fraud and Financial CrimesFDIC
Washington, DC
Jason Grasso
Proactively Identifying the Next Threat
• Know What You Do Not Know
• Horizon Scanning
• Data Mining/Surfing
Data Preparation for Exploration
• Assess data quality
• Entity Resolution/Link Analysis
• Aggregation of alerting processes
• Removing the noise to surface unknown anomalies
Operational Opportunities
• SAR process consistency
• Predictive Modeling to enhance efficiency
• Aggregation of investigations across functions, departments, geographies
Conclusion
• Criminals will find the weak link
• Payment and technology advances will drive further convergence
• Identify threats then determine process
• Convergence leads to better brand protection
Chief, Cyber Fraud and Financial CrimesFDIC
Washington, DC
Mike Benardo
Chief AML OfficerScotiabank
Toronto
Ron King
EVP and Head of Financial Crime Risk ManagementUnionBank
San Francisco
Bill Ward
“Perfect Storm"The Financial Services Industry has recently seen a convergence of threats coupled with an intersection of regulatory & law enforcement agencies
• Fraud• Cyber Fraud (Commercial payments)• DDoS/APT• Money Laundering• Public Corruption• Terrorist Financing• Economic Sanctions• Ponzi Schemes• Elder Abuse
• Prudential Regulators• DOJ• Federal Law Enforcement• State Regulators (e.g. DFS)• CFPB• FTC• SEC
Threats Regulatory/ Enforcement
Financial Crime Risk ManagementMission: To protect the employees, customers & assets of the Bank from money laundering, terrorist financing, fraud, robberies and other threats.
Program Management
Analytics & Technology
Operations
Governance Monitoring Protocols Surveillance
Policy Case Management Investigations
Accountability Data management SAR Filing
Risks Drivers Model Validation Alert / Case Management
Reporting / KPI (MIS) System Tuning Law Enforcement Liaison
QC/Testing Analytics Escalation / Adverse Action
Financial Crime Application Layers ExampleFunction Component Future
Business Intelligence and MIS
Workflow Management
Reporting / Support
Office Layer
Workflow Layer
AnalyticsLayer
Business Area
Enterprise BI Server, Enterprise
Miner, Soc Net
AlertGeneration Data Model
Data Mart
Analytics Business Intelligence
Enterprise Guide STAT, ETS,
OR, QC
Business Intelligence (BI)
- Alert Generation -- Transaction Monitoring -- KYC Event Triggering - Alert Pre-Processing- Customer Risk Rating- Data Mining / Risk Identification- Ad-hoc data provision - AML/Fraud Data Mart
Fraud and AML
ECM(Alert Mgmt)
- KYC on boarding and renewals- Alert management- Accounting Activity Research- Investigation and SAR Filing
-Reporting --Operations/Line Management --Senior/Executive Management- Support Office Processes
ECM(Inv & SAR)
ECM(CDD/EDD)
Data Integration
Integrated Technology & Analytics Financial Crime
AML and Fraud Technology Integrated Platform
Wor
kflow
Re
portin
g / S
uppo
rt Of
fice
Analy
tics
Transaction / Profile
Monitoring
Alert Management
Case Management
APEX - TBD(In-House)
Business Intelligence /
Reporting
Non-Preprocessing Alerts
Auto SAR
Analytics Infrastructure / AML Fraud
Data Mart
Debit Card
Check/Kiting
Internal
Alert Integration
System (AIS)FCA (Case)
Alert Mgmt System
AlertsCombined Alerts/Alert Mgmt
Reviewed Alerts
Referrals
Data & Alert Preprocessing
Data
Future:- Ad-Hoc- New Acct - Deposits- Cross-Channel
APEX - TBD(In-House)
Business Intelligence /
Reporting
Referrals
Raw Alerts Alert Preprocessing
Customer Risk Rating
Data
Data
CDDNew/
UpdateKYC?
10+ Other Alerting Sources
Other Sources:- eQAR- External Media
Alerts
Routing
Fraud AML
Work Groups:1) Info Logistics - Work groups2) Info Ops - Work groups
Interested Alerts
TriageAlerts
On-BoardingSystems
New Customers
Governance – Providing Board and Management Oversight (Example)
BoardLevel
MgmtLevel
Board of Directors
Risk Committeeof the Board
(RC)
Risk and Capital
Committee(RCC)
Fiduciary Risk Management
Committee(FRMC)
Compliance Risk Mgmt
Committee(CRMC)
Consumer Protection and Compliance
Committee(CPCC)
Anti-Money Laundering Oversight
Committee(AMLOC)
Operational Risk Management
Committee
Executive Committee
(EC)
Benefit of Convergence
1. Less chance of overlap with inconsistent results2. Manage regulatory expectations3. Efficient use of technology & human capital4. Leverage data for more accurate view of risk profile5. Safety & Soundness (CAMELS)
Director, Threat FinanceWorld-Check
Washington, DC
John Solomon
Your Questions
Please Join Us In the Exhibit Hall for a Networking Break
Courtesy of: