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Œš„š|ą‡$     () () ()   21   ŽŒ >>**..ƒƒžžßßHH,,HG//  HG//HG,, () 21  ± ² ³“¶!·ø¹ŗ»½¾æĄĮĀĘĒČÉĖĢĶĻŠŃÓŌÕÖ×ŲŁŚŪƒ š0ƒ†AæĄÅA’pń’™f’™’’’f’@ń÷š8ó”€ó¢€ŠüN Źš;ŠN8Źš;śgžż42d2dÜd—É 0öż’’ˆ’’’pūppū@ <ż4dddd@—‘w 0t©4ä’ <ż4BdBd@—³x 0t© ˆąŠ0ŗ___PPT10‹ ĄĄŠ ŗ___PPT9‹‚ų†łĪnšÄś‹ŠŌwŠéöJ¦@hÅ’‰PNG  IHDR €ÅłOPLTE’ĄĄĄĢ™€f+ŽÕtRNS’å·0J cmPPJCmp0712Om·„0IDATÓcT`Ņ 0šH‡†)0ĄhF(Ķ£PłŒõ0żHęĢ'ó bž] $IEND®B`‚łØnšž ’X¦•lā†tŻkŌ,’‰PNG  IHDR +“tsRGB®ĪéPLTEĄĄĄĢ¹/= cmPPJCmp0712|m.”tRNS@ęŲfIDATWc`@Œ””„0irM“(PIEND®B`‚®ģÆ ¬4€€Æ¬:€Æ#¬Æ ¬(€€Æ¬Æ¬Æ"¬,€Æ ¬€Æ ¬Æ¬4€€Æ¬<€€€Æ¬&€Æ¬&€Æ¬&€Æ ¬Æ¬(€Æ¬&€?Ł Ś+OŁ Ś =šA”óŸØVThe International Standards Required for Due Diligence & Risk -based Approach ”8WF ’ž ’ž ’žŖV ŸØx MENA Compliance Officers Forum 19-20 July 2007 Continental Reef Hotel , Sharm El Sheikh ================================= Presented by: Aline Aziz Credit Libanais SAL ”\yPc /g’žEg ’žg ’žŖZP  }     ó Ÿ ."""" AGENDA """" ”\B00’ž0$B0$Ŗ Ÿ ¦KEY TO EFFECTIVE EVOLUTION OF CONSISTENT INTERNATIONAL ANTI-MONEY LAUNDERING STRATEGIES. INTERNATIONAL STANDARDS & RISK BASED APPROACH FRAMEWORKS FATF RECOMMENDATIONS BASEL II DIRECTIVES EU THIRD DIRECTIVE WOLFSBERG PRINCIPLES SAMPLES OF RISK BASED APPROACH ADOPTED STRATEGIES UK FRAMEWORK US INITIATIVES & OTHER ONGOING CDD POLICIES& .”^’PUP2P;P’U2;  ŖS ó ŸØ2THE TARGETS OF ENHANCED INTERNATIONAL STANDARDS ”D3 0G’žCcŖ2 Ÿ Pŗ% To upgrade & Reform Anti-Money Laundering Systems ŗ% To exchange views with our peers regarding importance of main areas of common interest . ŗ% To adapt the international standards to legal and national circumstances in respect of: Understanding Regulators scopes, policies and styles Consolidating Cooperation between regulatory and law enforcement authorities. Easing The burden of rules-based AML requirements. ”²““q[óqP’ž¹ņqP’ž³" ’ž’ü“BBYBBøB B ŖØ ó Ÿ 0ŗ%ŗ%ŗ% MAIN OBJECTIVES ŗ%ŗ%ŗ% ”Rf(’ž(’žf(’ž  (’žŖ Ÿ  Upgrade the DUE DILIGENCE PROCEDURES in order to comply with changing international standards Implement an effective  Know Your Customer Regimes with stronger check against misuse of the banking system in terms of FRAUD & in terms of ML & with complex duties for regulators to compile & keep up to date lists of suspicious persons & organizations In respect of a Risk Based Approach, each country with the partnership with the private sector ,will have to develop the best appropriate regime in order to address RISK as assessed.  One size approach does not fit all : there are different risks and vulnerabilities in each country and each sector- there is no definitive single model for the Risk based Approach. Assess changes in the Risks : checking that Standards are being observed is important but more important is to ensure that the Standards themselves are effective in dealing with Changing Risks. ”vŽP’ŲPP]ø"”ĆŖ óŸØPConsiderations about how to built in The most effective AML Risk-based Approach ” QO ŖP ŸØPFrom the regulators perspective : Find the appropriate balance between the rights of individuals to privacy of Information & the protection of financial institutions from being misused as a tool for crime proceeds infiltration. Define The law enforcement priority as to determine the relevance & value of AML Activity. Implement a Risk based approach whereas the allocation of resources is decided according to Risk. Pinpoint corporate responsibilities in order to mitigate reputation risk, in order to apply good practice and not only to meet minimum Legal & Regulatory obligations. ”`#ZĒ“qZf’qZZ' Ŗ Q ó-#Ÿ ¶Considerations about how to built in The most effective AML Risk-based Approach continued& .”\\ Ŗ[ Ÿ Ō % Risk assessment should always refer to implemented procedures like: Assessing Identifying Mitigating Monitoring More strengthened AML controls, internal audits & transactions tracking systems to avoid gaps & Vulnerabilities. ”šI“qŸ’Ų’ŲBBEŸ’ž’ž ’žŖé óŸØ$The burden encountered & constraints”%%(Ŗ$ Ÿ öPunishment for financial institutions for lapses in their AML protections and controls have increased :  more than 100 million $ in fines have been levied & numerous small banks received public enforcement actions for lacking adequate internal controls Suspicious activity reports have risen from 162,720 in 2000 to 567,080 in 2006 (source Fraud watch issue 3 vol. 15, 2007). ”2{’}’žŖ{ ó ŸØThe FATF Risk Based Approach”Ŗ ŸØKIntroduction to consultation paper: a recognition to the need of a Risk based Approach which takes account of costs & benefits of obligations imposed. The objectives of the FATF Standards: - Emphasize the role of the private Sector as the front line in combating ML & TF. - Emphasize the need for guidance on Risk-based Approach.”$½PPLŖK ó ŸØ#FATF Plenary Meetings / Paris 2007 ” $"((Ŗ# Ÿ \Plenary meeting Paris June 2007 was attended by over 400 delegates representing 34 countries & 21 International organizations. Plenary issued a Summary noting the future publication of Guidance for the Private Sector & Governments on a Risk-based Approach to combating ML &TF. (First guidance jointly produced by FATF & Private sector). The Guidance focuses on several elements: The outline of the FATF Standards & the Risk-based Approach; the BENEFITS & CHALLENGES of implementing a Risk-based Approach  KEY ELEMENTS for effective RBA. The Guidance for the Public sector The Guidance for Financial Institutions in implementing the Risk-based Approach. The framework of high level principles & steps for Governmental bodies & Financial Institutions to consider in their implementation & development of RBAs.”Ž€PPÖP*P®PÓ* Ŗ.)   óŸØ,Process of revising the FATF Recommendations”--(Ŗ, ŸØc FATF insists on affirming that ONE SIZE does not FIT ALL- there are different Risks & Gaps in each countries & each sector. There is no single model for the Risk-based Approach- FATF Guidance will help implementing the adequate helpful frameworks Each country will need to develop the most appropriate regime in order to address risks as assessed. ”`ū’qZ“qZe’qZ“qZZdŖb óŸØ!FATF Enhanced Risk-based Approach”""(Ŗ! Ÿ zFATF Standards take a Risk-based Approach to Customer Due Diligence CDD.:  Financial Institutions should apply a range of CDD measures, but may determine the extent of such measures on a Risk-based Approach, depending on the type of customer, business relationship or transaction . Source Current initiatives of the FATF BY Mr. Swandlove, former FATF President March 2007- SIFMA 7th Annual AML Compliance Conference  New York. ”xJ’qPp“qP“ŲPQĻ’žj 0 Ŗ&V   _ ó,"ŸØ!FATF Enhanced Risk-based Approach”""(Ŗ! Ÿ  The current initiatives of the FATF emphasize on: The Need for guidance on Risk- based approach: means the application of : ŗ% High risk ENHANCED DUE DILIGENCE measures - Some customers may pose a higher than average Risk of money Laundering to the Institution . ( WHO he is , WHAT he does, WHERE he comes from, WHERE he does business , HOW the account is operated & a CDD ongoing process at Two stages Identification of Direct Customers& Verification of Customer s Identity. ŗ% Average risk customer due diligence ŗ% Low risk minimum or simplified due diligence measures ŗ% The Identification of high risk jurisdictions ŗ% The Cross border privacy protection & information sharing ŗ% The handling of the Compliance burden /duplication stress ”2“ŲPK’ŲP“ŲP³Ų’žPö“ŲP“qPP2’žK B’ž ’ž ’ž’ž’žWB*B9B0B<B?Ŗ óŸ nPinpointed Issues in Enhanced Risk  based requirements”88(Ŗ7 ŸØÖThe new FATF recommendation requires supervisors to take particular attention to PEPs ; corrupt PEPs represent bad publicity, financial loss & induct to legal action. Crucial issues are relevant regarding to types of private banking customers coming from jurisdictions with high severe risks of ML. Correspondent banking , corporate vehicles , trusts with disguised beneficial ownerships , third party business require enhanced measures & transparency to improve information on the beneficial ownership of legal entities and legal arrangements. Expanded role for particular industry sectors as the non-financial businesses Extended recommendation by FATF address new & increasingly sophisticated ML & TF techniques & Systems ”××ŖHQ     r ó ŸØbREVIEW OF THE FATF FORTY RECOMMANDATIONS CONSULTATION PAPER by THE NON-BANK FINANCIAL INSTITUTIONS”ccŖb Ÿ ˜ THE ASSOCIATIONS SIA , ICI , FIA, SECURITIES INDUSTRY ASSOCIATIONS, THE FUTURES INDUSTRY ASSOCIATION, THE INVESTMENT COMPANY INSTITUTE addressed comments regarding AML Risk based approach outside the context of the banking industry : A financial institution can implement an effective AML program only by conducting an assessment of the varying risks associated with different types of business, clients ,accounts, transactions this program handles.”^'Źܒ§ š?•Ŗ Ķ ó ŸØJUS targets a Risk based AML framework for smaller financial institutions ” KI ŖJ ŸØ÷ Financial services have been suffering under the burden of rules-based AML requirements. The objective is to put in place a framework that enables small banks to use international financial reporting standards than GAAP accounting procedures. ”Z\’q“q›BZB˜Ŗ ų óŸØsA sample of commitment to FATF risk based approach international standards & proposals for changes in the approach”ttŖs Ÿ <  The Jersey financial Services Commission enhances implementation of AML policies consistent with key elements of revised FATF recommendations. The target is to meet international requirements at the same time of easing the burden on customers & institutions obligations. The consultation paper on the draft Money Laundering (Jersey) Order 200 & on the draft Handbook for prevention & detection of ML &TF highlights that: FATF recommendations require the extension of measures to combat ML & TF to non-financial businesses & professions, so as to include activities conducted by advocates , lawyers, accountants, estate agents& A risk based approach to CDD is set out on following points: Reduced or simplified measures lower risk relationships Enhanced CDD higher risk relationship CDD measures other than identification & verification of identities such as on on-going monitoring of unusual, complex & higher risk activities & transactions More customer friendly ways of verification; 1 single reliable document in low risk situation ex: a passport More stressing on senior management duties & responsibilities in enhancing AML & corporate governance practices. ”Ž{PP>PäPP‘€k;ä  Ŗž ó'ŸØZ BASEL COMMITTEE ON BANKING SUPERVISION requirements of a Risk-based Approach ”<[V(™ž(fžŖZ ŸØ ”Ŗ óŸØ<Review of the BASEL II by Non- Bank Financial Institutions ”$=:$™žŖ< Ÿ  The Basel Committee CDD paper is drawn from practices in the banking industry. Many concepts like verification before account opening, collection and review by the primary institution of an intermediary s verification documentation are burdensome for the securities and related industries. Example : mutual fund can be opened & serviced by a broker in contact with a customer establishing a direct on  going communication. This may help firms discover facts that are inconsistent with identification information provided by the customer. Comments were formulated about guidance regarding: Verifying using Databases maintained by reliable vendors Timing of verification of identity of customers Verification of existing accounts. The practice of simplified verification and due diligence of low risk situations & cases. Special verification procedures for Trusts & Corporate Vehicles intermediaries & reliance on them to perform Identification & verification duties Outsourcing verification from agents that perform financial functions as identification & verification of customers Politically exposed persons Suspicious transaction reporting ”Ž#’§P“§P4’§P*’§PP$2*  Ŗ óŸØ0Basel Committee V/S revised FATF Recommendations”11(™žŖ0 Ÿ „ The adoption of effective KYC standards is an essential part of Bank s risk management practices Basel Committee on Banking Supervision (BCBS) , October 2001. Issued in 2003, a consultative document settled the Compliance function in banks. the objective of a compliance function is to assist a bank in managing the compliance risks; risk of legal or regulatory sanctions, financial loss, loss to reputation resulted from a failure to comply with rules & standards. CDD for banks has been reinforced in February 2003 by a General Guide to Account Opening & Customer Identification : Customer Acceptance Policy Customer Identification On-going Monitoring of Higher Risks Accounts Risk Management ”z”PP­PpPPP<sŖ Ć óŸ xBasel Committee V/S revised FATF recommendations CONTINUED& .”<=1(™ž ™ž(™žŖ< Ÿ ÜBCBS issued in 2006 a paper setting forth the principles for sharing information between home country & host country supervisors in the implementation of the BASEL II Capital framework . The target is to develop pragmatic cooperation & communication , to reduce the burden on the banking activity & make implementation of Basel II efficient. Basel Committee CDD for banks paper is reflected in the FATF recommendations concerning CDD. It will remain the essential guide of Know your customer standards & bank s management for reputational, operational, legal risk that can occur from lack of CDD application. ”<[ZZZYŖ.   F ó ŸØManaging Mixed Financial Groups”  (’žŖ Ÿ ” Specific identifications issues , consistent with FATF reviewed recommendations , should be addressed when dealing with: Trusts , Nominees ,Fiduciary accounts.( FATF October 2006 TCSP Report  The Misuse of Corporate Vehicles, Including Trusts & Company Service Providers ). Corporate business entities, international business companies , companies with nominee shareholders or shares in bearer form & . Client accounts opened by professional intermediaries, pooled accounts managed on behalf of entities ; mutual funds, pension & money funds, accounts managed by lawyers, Politically exposed persons PEPs. Non-face-to-face customers; non-resident customers. ( E-Banking consumers). Correspondent Banking . ”Py’qP“qP™PP€PP©PP"PPLPPPP zO ’ž ’žŖ.^  h ó(Ÿ VManaging Mixed Financial Groups continued& .”,,(’žŖ+ ŸØ6Involvement of Banks in Securities & Insurance businesses poses new issues in CDD affecting the reputational risk of the bank. the intensity of KYC programs should be tailored to the degree of the risk encountered in each type of transaction ,& regularly reviewed , on compliance & internal audit basis. ”H7‚’ž°’ž’žŖ.a   É ó$ŸØ'IMPLEMENTING THE THIRD E.U. DIRECTIVE”(($’žŖ' Ÿ ö The THIRD EU Directive on the Prevention of the Use of the Financial System for the purpose of Money Laundering & Terrorism Financing stands for a : ŗ% A Directive to be implemented by the member states by December 2007. ŗ%ŗ% A Directive in line with the FATF ML Standards ŗ%ŗ%ŗ% A Directive emphasizing on detailed Risk-based Approach to CDD ”h{—’žBHB1B[Ŗ{ ó) ŸØ>The EU directive an updated challenging Risk- based Framework ”"?=(’ž(Ŗ> ŸØāThe 1st AML Directive adopted in 1991 simply concentrated on combating laundering of proceeds of drugs through the traditional financial banking sector. It introduced: principles of client identification , record keeping, internal controls, reporting suspicious transactions to competent authorities. It was upgraded in 2001 through the 2nd AML Directive widening the range of ML Offences & extended the EU rules to include a number of non-financial activities & professions. ”jć ? }Ŗā  ŸØ§The Third EU Directive intends to update & consolidate the existing EU AML Framework. It stresses on a Risk-based Approach whereby the entities subject to AML rules adapt their practices & Processes according to ML Risks they encounter. It addresses specifically the Insurance Industry. It extends the CDD procedures not only to new clients but also to existing customers at appropriate times & on a Risk-sensitive basis . ”ØØŖ§ ó*!ŸØ5Risk-Sensitivity & Risk Measurement a crucial issue ”66(’žŖ5 Ÿ ¼Risk- sensitivity is embedded in FATF recommendations. Importance of How Risk-based Approach is implemented in practice has been the pinpointed issued from relevant authorities FATF , Treasury s ML Regulations, FSA s Financial Services Authority. JMSLG Joint Money Laundering Steering Committee issued a guidance for the implementation of FATF Standards in the UK. The 3rd EU Directive translates into EU Law the 2003 revision of the FATF Recommendations. ”z:PPÅPP|PP^P† WŖ.Ż  ū  ŸØ„The 3rd EU Directive will introduce for 1st time the enhanced notion of a Risk-based approach to AML at the European Level. Its implementing measures introduce detailed requirements to CDD but provide technical criteria for Simplified Due Diligence SDD ; customers , products & transactions designated to represent Low Risk of ML & TF. It should be implemented in all EU member states by end 2007. ”Ž„PPįPP?P % Ąu’ž?Ŗ ¦ óŸØDThe UK example of responding to International Standards requirements”EE(’žŖD Ÿ Hŗ% Treasury & government support for the financial institutions efforts to combat ML: an appropriate balance between the rights of individuals to privacy & the protection of society from crime. ŗ% The FSA Financial Services Authority works within the respect of EU, UK law & International Standards. ŗ% The UK adopts a AML policy based on key principles: A risk based approach defining allocations of resources according to risk and impact. A clear accountability in developing the legal framework, the regulatory framework and the international standards in a transparent way. A senior management acceptance of their responsibility for effective AML systems & controls. ”ņeP=PP’ -PPBB ĮBjB2=’ž’ž ’ž Ŗ¤ ó Ÿ žThe UK example of responding to International Standards requirements continued& ”PP ’žŖO ŸØ The UK approach emphasizes on the assessment of ML risks and the CHANGES in the RISKS over the time in order to promote an effective risk Mitigation by the regulated financial institutions. The Uk approach insists on monitoring compliance , early identification & correction of Weaknesses. PRIORITIES: Influence the Framework of Law & International Standards. Identify & address areas of risks ”dB“q^B’žÓ ’žmŖ.É  Õ óŸØ6WOLFSBERG Standards supporting Risk-based Processes.”77(f’žŖ6 Ÿ fGlobal Anti-Money Laundering Guidelines for Private Banking, Wolfsberg Statement on the Suppression of the Financing of Terrorism ,Wolfsberg AML principles for Correspondent Banking have not embraced a Risk - based approach in its new assessment. The necessity to address issues related to the development of risk based processes for monitoring, screening & searching of transactions and customers has conducted to the  Monitoring Screening & Searching Wolfsberg Statement. Wolfsberg group supports the adoption of a Risk-based approach schemes & models with standards & tools flexible enough to permit a better risk assessment of potential ML activity and risky transactions. ”’ųPPėPPĪPP·7·8ĻŖ|=   =   C       Å ó%ŸØ6WOLFSBERG Standards supporting Risk-based Processes.”77(f’žŖ6 ŸØĒThe milestone of this new enhanced process is to operate : Real-time screening Retroactive searches Transaction monitoring This Risk- based approach is closely linked to the Risk- based approach used to assess risks at account opening & CDD procedures. This approach permits to identify gaps between different stages of transaction activity for a specified customer, current and past with critical assessment of potential existing risks. ”¤;ZAZɒqZƒZ1?f’žR ķ ŖĒ ó!Ÿ ,CONCLUSION NOTES :&:&”,$f<’’žŖ  ŸØ-The main issue is to upgrade the DUE Diligence Procedures in some respects to comply with changing International Standards & in a way to be applied to new Banking Relationships. ? ? ? The big Question remains : What should be done in relation to Existing Customers ? To What extent should we go back? How to renew verification of the Identity of Existing Customers? How to deal with Customers who fall into Higher Risk Categories? How to adopt the best Risk based initiatives to undertake these verifications? How to proceed for the review of existing records when a customer undertakes a significant transaction, when there is a material change in accounts operations & customers documentation standards? ? ? ? CRITICAL ISSUE: WHAT IS ENOUGH IN MATTER OF RISK ASSESSMENT AND COMPLIANCE DUTIES ? ? ? ”<³PZP·PPhPP!’žzF$’žB$TøF’ž’ž’ž’ž:’žF’ž’ž’ž’žŖ- ó#Ÿ FINALY& & & & .” ’’žŖ  ŸØ THANK YOU & GOOD LUCK ”pPePPqP%PP\ }!< Ŗ /š8ó.ó/źųl ļ  0`š ’’’ff3’’’ff™™™™’’’`š J’’’MMM’’’Ģ3ff™’™’’’`š @@’’’ff™’’’’Ģ’3Ģ™Ģ3`š f™’’’MMMĢģ’3™f3f’3Ģ’’’’`š ’’’ff™Ģ’f’™3’Ģ33™`š ’’’ĄĄĄĢ3ff™™™MMM`š ’’’33™f3™’™™’Ģ’___£>’ż?" dP@’’ļ’’’’,£’’ż?nKdŲ@’’ļ’’’’`AŌ `7Š@č§dš`hU€ £n’ż?" d’d@’’ļ’’’’   @@``€€P£T    @ ` €`£>p£>€£> XšP š Äščš( š šÄšpšT šš0 šÄ šˆ"ń暐š0šŹ šÄ £ š<€ 7d…‡æĄĖ¢­’"ń暐š0 šHŸ”0Ŗ šŹ šÄ £ š<€Č;d…‡æĄ’"ńæšĮĮ¾ō šHŸ”0Ŗ šhB šÄ s š*DæĄĖœ1’"ńæšPD`Dšą šÄ “ š6€?d‡ƒæĄ’ "ńæš*P`śšĆ d šTŸØ Click to edit Master title style¢!Ŗ !š$ šÄ ƒ š0€Ä?dƒæĄ’ "ń暀P`pšĆ d šžŸØRClick to edit Master text styles Second level Third level Fourth level Fifth level¢!    Ŗ Sšč šÄ “ š6€$Fd‡ƒæĄ’ "ńæš`P`€šĆ d š\Ÿ *” ųŖ šę š Ä “ š6€Ld‡ƒæĄ’ "ńæš`ų€šĆ  d šZŸ *” śŖšF š Ä “ š6€>--š'’’ūž’@"Arial-. 2 t 7/20/2007.ū¼²"System:ä-šūž’²"Arial-. - 2 t•1- .-šūł’¼@Times New Roman-. ’12 #%The International Standards .-šūł’¼@Times New Roman-. ’2 *> Required for.-šūł’¼@Times New Roman-. ’(2 1&Due Diligence & Risk .-šūł’¼@Times New Roman-. ’ 2 1k-.-šūł’¼@Times New Roman-. ’2 1mbased.-šūł’¼@Times New Roman-. ’2 8BApproach .-šūü’¼@Times New Roman-. ’62 E4MENA Compliance Officers Forum .-šūü’¼@Times New Roman-. ’ 2 JC19.-šūü’¼@Times New Roman-. ’ 2 JG-.-šūü’¼@Times New Roman-. ’2 JH 20 July 2007.-šūü’¼@Times New Roman-. ’02 O-Continental Reef Hotel , r.-šūü’¼@Times New Roman-. ’2 OYSharm.-šūü’¼@Times New Roman-. ’2 Oe El Sheikh0.-šūü’¼@Times New Roman-. ’92 S+!=================================.-šūü’¼@Times New Roman-. ’2 ]\Presented by: .-šūü’¼@Times New Roman-. ’2 ]tAline.-šūü’¼@Times New Roman-. ’ 2 ]~Aziz.-šūü’¼@Times New Roman-. ’%2 b^Credit Libanais SAL .-šž’ÕĶ՜.“—+,ł®0, ˆØ“¼ÄĢ Ō Üä ģōü  ÉéżOn-screen Show _8#ę %ArialTimes New Roman Wingdings Courier New Arial NarrowRefinedWThe International Standards Required for Due Diligence & Risk -based Approach (āˆ•āˆ•āˆ•āˆ• AGENDA āˆ•āˆ•āˆ•āˆ• 3THE TARGETS OF ENHANCED INTERNATIONAL STANDARDS %ā–ŗā–ŗā–ŗ MAIN OBJECTIVES ā–ŗā–ŗā–ŗ QConsiderations about how to built in The most effective AML Risk-based Approach ^Considerations about how to built in The most effective AML Risk-based Approach continuedā€¦.%The burden encountered & constraintsThe FATF Risk Based Approach$FATF Plenary Meetings / Paris 2007 -Process of revising the FATF Recommendations"FATF Enhanced Risk-based Approach"FATF Enhanced Risk-based Approach:Pinpointed Issues in Enhanced Risk ā€“based requirementscREVIEW OF THE FATF FORTY RECOMMANDATIONS CONSULTATION PAPER by THE NON-BANK FINANCIAL INSTITUTIONSKUS targets a Risk based AML framework for smaller financial institutions tA sample of commitment to FATF risk based approach international standards & proposals for changes in the approach[ BASEL COMMITTEE ON BANKING SUPERVISION requirements of a Risk-based Approach =Review of the BASEL II by Non- Bank Financial Institutions 1Basel Committee V/S revised FATF Recommendations?Basel Committee V/S revised FATF recommendations CONTINUEDā€¦. Managing Mixed Financial Groups.Managing Mixed Financial Groups continuedā€¦.(IMPLEMENTING THE THIRD E.U. DIRECTIVE?The EU directive an updated challenging Risk- based Framework 6Risk-Sensitivity & Risk Measurement a crucial issue EThe UK example of responding to International Standards requirementsRThe UK example of responding to International Standards requirements continuedā€¦7WOLFSBERG Standards supporting Risk-based Processes.7WOLFSBERG Standards supporting Risk-based Processes.CONCLUSION NOTES ā˜ŗā˜ŗFINALYā€¦ā€¦ā€¦ā€¦.  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