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Indian Institute of Management Bangalore

Financial Crime Risk & Prevention Category Name

Venue : IIMB Campus
Last date for registration: 15 Nov, 2019
Start Date : 25 Nov, 2019
End Date : 29 Nov, 2019
Early Bird Discount Date : 04 Nov, 2019
Residential Fee(excluding GST) :  Rs. 1,17,500
Residential Early Bird Fee(excluding GST) :  Rs. 1,05,750
Non-Residential Fee(excluding GST) :  Rs. 1,00,000
Non-residential Early Bird Fee(excluding GST) :   Rs. 90,000

Financial Crime is a global scourge, and fighting it is a priority for every responsible Government in the world today. The 2008-14 Banking which is largely attributed to risky, unethical banking practices and lax controls, resulted in the introduction of stringent compliance standards in the financial sector globally. As a result of this, an alarming number of serious financial crimes involving reputed global banks and other financial institutions came to surface. The scale and depth to which financial crime has spread in financial services sector across continents and its linkage to the rise of international terrorism as well as other horrific offences against humanity like drug smuggling, human trafficking, illegal gambling, extortion etc. has brought financial crime prevention to the centre of national policies and international co-operation.

A large number of serious financial crimes which have surfaced in India in recent times involving reputed banks has brought to light the weaknesses in the financial services sector, and the need to re-evaluate the compliance standards, practices and culture.

International surveillance of the financial services sector worldwide is more stringent today than ever before. Lapses are punished with very stiff penalties by regulators. Since 2008 to-date, it is estimated that the top 20 global banks have paid more than US$ 400 billion (the size of GDP of Singapore or Malaysia or Portugal) in fines and settlements to regulators mainly in the US and also elsewhere. Indian banks, even though not largely global, have started figuring in the list.

Questions about the effectiveness of existing compliance standards and the widespread prevalence of weak compliance culture in the financial services sector have raised serious concerns at the highest levels of Government in India. In the coming days and months increased emphasis to raise compliance standards and financial crime controls to the highest standards should be expected.

IIM Bangalore has taken the lead, to develop and launch a very successful management development programme on Financial Crime Risk and Prevention.

The programme will focus on

  • Financial Crime Global context
  • Anti Money Laundering
  • AML and International trade
  • Counter-Terrorism Financing
  • Cyber-enabled financial crime
  • Bribery & Corruption
  • Sanctions
  • KYC/CDD
  • Fin-tech & Financial Crime
  • Global Regulatory framework
  • Indian Regulatory framework
  • Risk based approach and compliance programmes
  • Fighting financial crime -Indian context

Module 1:  What is Financial Crime?  Financial Crime risk and its impact on the economy, Typologies/Methods, Common behaviour characteristics and warning signs. Money laundering, Bribery & Corruption, Fraud, Identity Theft & Electronic Crime International regulatory framework and institutions, US regulatory framework and its global reach, UK/EU regulatory framework and its global impact, Indian institutional framework.

Module 2: Anti-Money laundering an overview, Overview of global trade and practices, Financial Crime risks in International Trade. International Trade -red Flags, Sanctions, Financing of terrorism, Identifying potential threats and red flags. Cyber based Financial Crime.

Module 3:  Compliance Standards for AML and Combating Terrorism Financing, AML Compliance Programme, Audits and Investigations , KYC issues & common practices  CDD issues & common practices, Financial Intelligence Units (FIUs). Building a rapid response team.

Module 4: Introduction of FinTech, Crypto-currencies, Disruptive Technologies, Emerging Trends in Money and Markets and Banking, Financial Crime Risk and the Emerging Digital world.

Module 5: Bribery & Corruption, Corporate Social Responsibility, Fighting Crime Indian experience, and International Co-Operation.

Programme Delivery: High-quality classroom discussions, case-lets, guest lectures and group exercises.

Major benefits and takeaways: The programme is designed to provide

• an in-depth exposure to the risk of financial crime, its global dimension, main typologies, international organisational framework and major regulations for fighting financial crime.

• an understanding of risk-based approach and measures to combat financial crime in the financial services sector. • an approach to design/evaluate financial crime compliance programmes.

• an understanding of global sanctions

• introduction to Counter-Terrorism Financing, Cyber based Financial Crime and a detailed overview of the impact of FinTech on Financial Crime.

Who should attend: Middle and Senior practising executives in financial services industry such as banks, insurance companies, non-banking financial institutions, middle and senior-level executives in accountancy firms /management consultancy, academicians and middle/senior executives in regulatory institutions and enforcement agencies.

Course Coverage

1.Financial Crime- An overview

  • What is a financial crime?
  • Review of various types of financial crime
  • Banking frauds
  • Bribery and Corruption
  • Common behavioural patterns of operatives in financial crime
  • Common red flags
  • Economic and Social consequences of financial crime
  • The risk-based approach to preventing financial crime

2.Global Regulatory Framework

  • Financial Action Task Force structure and recommendations
  • FATF style regional bodies
  • Egmont Group
  • The Wolfsberg Group
  • The Basel Committee on Financial supervision
  • US PATRIOT Act
  • Office of Foreign Assets Control
  • EU Directives (1st,2nd, 3rd and 4th)
  • UK Regulatory framework
  • Indian regulatory framework

 

3.Anti-Money laundering

  • Money laundering defined
  • The three stages of the money laundering process
  • Money laundering typologies involving; 

 

Banks: (Correspondent Banks, Payable Through Accounts, Concentration Accounts, Private Banking, Structuring, Credit Unions and Building Societies

Non-Banking Financial Institutions: (Credit Cards, Money Remittance Exchanges, Insurance companies, securities brokers /dealers, Commodity Exchanges)

Non-Banking Businesses and Professions:(Gaming industry, Casinos, Art Dealers, Used Vehicle sellers, Real Estate Industry, Black Market for pesos and its variants)

Gatekeepers:  Accountants, Lawyers, Trust & Company Service providers, Investment Advisors, Commodity Advisors.

New Technologies: Electronic Banking, Internet Casinos, Pre-paid cards.

4.AML and International Trade

  • Fundamentals of International Trade
  • Money Laundering and International Trade

                       -Ghost Shipments

                       -Varying physical goods

                       -Varying Prices

                       -False Stand-by Letters of credit

                       -Red Flags

                      -Reporting suspicious transactions

                     -Risk-based approach

5.KYC/CDD

  • Corporate Structures which hide Beneficial Ownership

             - Trusts

             - Shell companies

             - Bearer Bonds/Securities

  • Why KYC/CDD?
  • The risk-based approach to KYC/CDD
  • Customer Identity -Natural person
  • Customer Identity-Legal person
  • Beneficial Ownership
  • Fraudulent Documents
  • Risk Categories (Customers, Products, Countries, Channels)
  • Politically Exposed Persons(PEPs)
  • Enhanced Due Diligence
  • Three lines of defence

 

 6.Sanctions

  • What are Sanctions?
  • Scope & application
  • Who imposes sanctions?
  • Purpose of sanctions
  • Types of sanctions
  • Sanctions vs Embargo
  • Asset freezing
  • De-listing
  • Regulator expectations
  • Sanctions evasion
  • Sanction screening
  • Licenses
  • Sanctions compliance-Role of Financial Institutions

 

7.Counter-Terrorism Financing

  • What is Terrorism?
  • What is Proliferation?
  • Terrorism vs Money Laundering
  • Terrorism-recent trends
  • Business Model of Terrorism
  • Attack cycle
  • Terrorist funding-sources and channels
  • Terrorist funding -Red flags
  • Combating terrorism

 

8. Cyber-enabled crime

  • Cyber-enabled crime-who needs to worry?
  • Personally, Identifiable Information
  • Tools and Methods of cybercriminals

         -Malware

         -Phishing

         -Ransomware

         -Botnets

         -Distributed Denial of Service(DDOS)

         - Cookie Theft

         - Fake WAPS

  • Who promotes Cyber-enabled crime

                        -State

                       -Organised syndicates

                        -Activists

                       -Wiz Kids

  • Cyber-enabled crime-Red Flags
  • Regulatory Environment

                      -General Data Protection Regulation 2016-GDPR

                      - The regulatory environment in India

 9. Elements of an AML Programme

  • Internal Policies, Procedures and Controls
  • Compliance culture and role of Senior Management
  • Role of Compliance Officer
  • Know your Employee
  • Training
  • Audits
  • Internal investigations
  • Law enforcement investigations
  • Suspicious and Unusual activity: monitoring and reporting
  • AML co-operations between countries

     

10. Fintech and Financial Crime Risk

  • Introduction to FinTech
  • Disruptive Technology and its impact on Financial Markets
  • Emerging Trends in Money, Markets and Banking
  • Financial Crime Risk and the Emerging Digital Revolution

The programme is designed to provide

  • an in-depth exposure to the risk of financial crime , its global dimension, main typologies, international organisational frame work and major regulations for fighting  financial crime.
  • an understanding of measures  to combat financial crime in financial services sector.
  • an approach to design/evaluate financial crime compliance programmes.
  • an understanding of global sanctions
  • an introduction to  Counter Terrorism Financing.

Middle and Senior practicing executives in financial services industry such as banks, insurance companies, non banking financial institutions, middle and senior level executives in management consultancy, academicians  and middle/senior executives in regulatory institutions and enforcement agencies.

Sankarshan Basu is a Professor in the Finance and Control Area at the Indian Institute of Management Bangalore. His areas of interest both in terms of research and teaching are Financial Calculus, Option Pricing, Bond and Portfolio Valuation, Applications of Quantitative Techniques to Finance, Insurance, Reinsurance, Risk Management, Biostatistics and Corporate Finance.

Sankarshan is a graduate of Presidency College, Calcutta and a Master’s degree holder from the Indian Institute of Technology, Kanpur. Both at the undergraduate as well as the postgraduate level, he was a student of Statistics. Further, he went on to obtain his Ph.D. in Statistics from the London School of Economics and Political Science specializing in Financial Applications of Statistics and Stochastic Processes.

Sankarshan has visited a number of universities and research centers all over the world and has presented his works at a number of international conferences in Thailand, United States of America, the United Kingdom, France, Spain, Norway, Iran, Tunisia, Morocco, and Netherlands as well as in India. He also has to his credit a number of papers in various international journals of repute like Insurance: Mathematics and Economics and the Journal of Statistical Planning and Inference.

Prior to joining the Indian Institute of Management Bangalore, Sankarshan was in the finance industry briefly, working in the Treasury operations of ICICI Ltd. (now ICICI Bank Ltd.) at their Mumbai offices. Before joining ICICI Ltd., he was a teaching faculty first in the Department of Statistics, London School of Economics and Political Science and then in the Department of Actuarial Mathematics and Statistics, Heriot Watt University, Edinburgh, U.K. Sankarshan has also been a Visiting Professor at the School of Accounting, Business and Public Administration at the University of Twente, The Netherlands, the School of Business, Economics and Law, Gothenburg University, Sweden, Asian Institute of Technology, Bangkok, Thailand and CFVG Ho Chi Minh City and Hanoi, Vietnam.

At IIM Bangalore, Sankarshan is involved in teaching courses on finance for PGP, EPGP, PGSEM, FPM and PGPPM students as well as conducting various executive development programs in the finance and insurance sectors. He is also actively involved in various consulting projects and also designs and conducts customized training programs for a number of companies and governmental agencies both in India and abroad. Sankarshan is also actively involved in various administrative activities at IIMB.

Sankarshan also is engaged with the financial markets in India and serves on the boards of The Clearing Corporation of India Limited, The Bangalore Stock Exchange Limited and Bilcare Limited

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Dr. Nanda Kumar

Qualifications: Fellow IIM Bangalore.

Certified Anti Money Laundering Specialists (Awarded by Association of Certified Money Laundering Specialists -ACAMS, USA).

Certificate in Financial Crime Prevention -Awarded by International Compliance Association ICA -UK

Certificate in Anti Money Laundering-Awarded by International Compliance Association ICA -UK

Certificate in Trade based Financial Crime Prevention Awarded by International Compliance Association ICA -UK

Work experience: Over 30 years in corporate sector and management consultancy in India, UAE/Sultanate of Oman, South Africa/Botswana and in the UK. Over 10 years in Financial Services in the UK of which last 5 years in managing high risk customers for a leading global bank

Programme Fee and Payment

INR 1,17,500/- Residential and INR 1,00,000/- Non -Residential (+ Applicable GST) per person for participants from India and its equivalent in US Dollars for participants from other countries.

Early Bird Discount

Nominations received with payments on or before 04-Nov-19 will be entitled to an early bird Discount of 10%.

  • Early Bird Fee (Residential) INR 1,05,750/-(+ Applicable GST)
  • Early Bird Fee (Non-Residential) INR 90,000/-(+ Applicable GST)

 

Please Note

All enrolments are subject to review and approval by the programme director. Joining Instructions will be sent to the selected candidates 10 days prior the start of the programme. Kindly do not make your travel plans unless you receive the letter from IIMB.

A certificate of participation will be awarded to the participants by IIMB.

  • The programme fee should be received by the Executive Education Office before the programme commencement date.
  • In case of cancellations, the fee will be refunded only if a request is received at least 15 days prior to the start of the programme.
  • If a nomination is not accepted, the fee will be refunded to the person/ organisation concerned.