Financial crime risk management

Navigating clients through Anti-Money Laundering, Countering the Financing of Terrorism and Sanctions

Over the past 30 years, financial crime has increasingly become of concern to governments and financial institutions world-wide. A financial crime is an act or attempted act against institutions, governments or individuals by internal or external agents to illegally appropriate, defraud, manipulate or circumvent legislation. Financial crime includes offences such as money laundering, terrorist financing, fraud, bribery and corruption, market abuse and insider trading.

Our specialised Financial Crime Risk Management services include:

Due Diligence

Customer due diligence (CDD);  enhanced due diligence (EDD) and ongoing due diligence (ODD)

Our services include:

• Focus areas systems

• Customer identification and verification

• Customer risk assessment methodology review

• Customer risk assessment methodology, definition and implementation

• Customer risk assessment data quality review

• Impact assessment of a customer risk assessment model

• Operational processes to embed a client identification and verification utility within a financial institution

• Correspondent banking risk assessment

• Intelligence usage assessment

• Customer risk-scoring approach / methodology

• Country risk-scoring approach / methodology

• Business type risk-scoring approach / methodology

• Business type risk list

• Customer risk model data quality dashboard

• Customer risk model impact assessment dashboard

• Remediation programmes

• AML health checks

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Transaction monitoring & reporting

Our services include:

• Current state assessment

• Vendor assessment

• Requirements definition

• Solution implementation

• GoAML reviews

• Cash threshold reporting (CTR)

• Suspicious and unusual transactions reporting

(STR/SAR)

• Target operating model (TOM) design

• Data quality assessment and monitoring

• Process optimisation analysis and enhancement

• Transaction monitoring optimisation

• Alert risk-scoring methodologies

• Alert handling optimisation

• Approach to model tuning

• Methodology for model tuning (rule selection,

segmentation, threshold setting)

• Data quality review approach

• Data quality dashboard

• AML typology tool

• Trade finance flows risk identification tool

• Detection scenario management frameworks

• AML program/system evaluations

• Correspondent banking

• Trade finance

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Counter-terrorist financing and sanctions

Economic sanctions are domestic penalties applied unilaterally by one country on another country or entity.

Our services include:

• Current state assessment

• Vendor assessment, requirements defi nition

• Operating model design

• Terrorist property reporting (TPR)

• Sanctions screening • Filter testing and tuning

• Data quality assessment and monitoring

• Process optimisation analysis and enhancement • Maturity model and current state assessment

report

• Filter testing approach and tool

• Vendor comparison

• List management approach • Data quality review approach

• Data quality dashboard

• Sanctions programme/system evaluations • Global AML, CFT and sanctions legislation comparisons

• Sanctions testing

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Risk management and compliance programmes

Financial institutions are being encouraged to take a risk-based approach to managing their risk. Furthermore, a risk management and compliance programme (RMCP) is now a legislative requirement.

Our services include:

• Enterprise-wide risk assessments (including product risk assessments and client risk assessments)

• Assistance with drafting and implementing a risk management and compliance programme (RMCP)

• Drafting and implementing a risk-based approach (RBA)

• Impact assessments

• Data quality reviews

• Regulatory review preparations

• ‘Mock inspections’

• Guidance for on-site visits

• Assurance reviews / Health checks

• End-to-end process reviews

• Internal audit thematic reviews

• Gap analyses

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Money laundering destroys value. It facilitates economic crime and nefarious activities such as corruption, terrorism, tax evasion, and drug and human trafficking, by holding or transferring the funds necessary to commit these crimes. It can be detrimental to an organisation’s reputation – and its bottom line.

PwC’s Global Economic Crime Survey (2016)

Contact us

Mark O'Flaherty
Partner, PwC South Africa
Tel: +27 (0)11 797 5885
Email

Roy Melnick
Associate Director, PwC South Africa
Tel: +27 (0)11 797 4064
Email

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