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Compliance: policy and implementation

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Table of Contents 2; AML :: General Overview 3; Latvian Laws ... of the Republic of Latvia is one of the most up to-date and strictest in Europe: ... – PowerPoint PPT presentation

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Title: Compliance: policy and implementation


1
Compliance policy and implementation
2
Table of Contents
  • slide
  • Table of Contents 2
  • AML General Overview 3
  • Latvian Laws Regulations on AML 4
  • Internal Guidelines and Procedures
  • Overview 5
  • Policies and Regulations 6
  • Scheme 7
  • Internal Guidelines and Procedures
  • Compliance for Clients Banks 8
  • Compliance for Corporate and Private
    Clients 9
  • Policy Highlights
  • Client Preferences 10
  • Disclosure 11
  • Transactions Monitoring 12
  • Changes Modifications 13
  • Educational Approach 14
  • Compliance Department 15
  • Executive Summary 16

3
AML General Overview
  • In 2004 Latvia became a full member of EU
  • Current Latvian legislature on AML, to which AS
    Latvijas Biznesa banka (LBB) fully adheres, is
    one of the most up to-date and complete
    international standards
  • LBB and its major shareholder Joint Stock
    commercial bank Bank of Moscow (open joint
    stock company), one of the leading Russian
    commercial banks, have joined forces in
    implementing AML policies and monitoring clients.

4
Latvian Laws Regulations on AML
  • The AML legislature of the Republic of Latvia is
    one of the most up to-date and strictest in
    Europe
  • Credit Institutions Law
  • Law on Prevention of Laundering of Proceeds
    Derived from Criminal Activities (Anti-Money
    Laundering Law)
  • Criminal Law
  • Recommendations of Latvian Financial Capital
    Market Commission (FCMC) on Development of
    Control Systems for Prevention of Laundering of
    Proceeds Derived from Criminal Activities and
    Counter-measures for Financing Terrorism
  • Rules adopted by the Ministry Cabinet of The
    Republic of Latvia on Signs of Suspicious Deals
    and Transactions and Reporting on Thereof.
  • Latvian Banking Association Guidelines

5
Internal Guidelines and Procedures Overview
  • LBB has a complete set of procedures and
    regulations in place that are in accordance to
    the guidelines and regulations of the overseeing
    authorities
  • All the compliance policies and regulations are
    inspected by independent international auditors
    Deloitte
  • FCMC constantly monitors audits compliance
    related performance and clients activities
    throughout the year
  • Internal Audit Department performs thematic
    checks in accordance to the plan, approved by the
    bank Executive Board.

6
Internal Guidelines and Procedures Policies
and Regulations
  • The major document that regulates LBB AML
    activity is Policy for Prevention of Laundering
    of Proceeds Derived from Criminal Activity. The
    following documents have been developed and/or
    modified in accordance to the Policy
  • Set of operational Regulations and Procedures
  • General Rules of Client Servicing
  • Account Opening Regulations for Clients
    Non-banks
  • Account Opening Regulations for Clients Banks
  • Regulation on Payments Processing.
  • General Code of Practice (binded)
  • Compliance Committee Guidelines
  • Compliance Department Procedures.

7
Internal Guidelines and Procedures Scheme
Prevention of Laundering of Proceeds Derived from
Criminal Activity (AML) Control Organisation
Scheme
8
Internal Guidelines and Procedures Compliance
for Clients - Banks
  • In order for the bank (or any other designated
    financial institution) to open a correspondent
    account with LBB, its required to produce valid
    and properly legalised copies of the following
    documents
  • Statutes
  • General banking or financial license, and
    licenses for particular operations
  • Registration Certificate
  • Authorised Signatures List with signatures
    specimen of authorised personnel as well as seal
    specimen
  • Documents that confirm the rights of the
    authorised personnel to represent correspondent
    Bank and act on correspondent Banks behalf
  • Latest available Annual Report
  • Latest Financial Statements.
  • Apart from the above mentioned standard
    documentation, LBB requests the client to provide
    the following papers

9
Internal Guidelines and Procedures Compliance
for Corporate and Private Clients
  • In order for the private or corporate client to
    open current account with LBB, its required to
    produce valid and properly legalised copies of
    the following documents
  • Identification Document (passport or ID card)
  • Account Application Form.
  • Apart from the above mentioned standard
    documentation, LBB requests the client to fill-in
    the following papers

10
Policy Highlights Client Preferences
  • LBB is NOT servicing
  • Companies and/or individuals involved in Money
    Laundering, criminal or fraudulent activities
  • FATF blacklisted countries, companies and
    individuals
  • Companies and individuals of questionable
    reputation, or, being of residence/origin from
    countries with questionable reputation
  • Shell banks
  • Specifically, LBB does not open or service
    Anonymous or Numbered accounts.

11
Policy Highlights Disclosure
  • LBB adheres to strict control rules with
    regards to ultimate beneficiary disclosure
  • accounts are opened only on the basis of
    eye-to-eye client identification every client
    and ultimate beneficiary is PERSONALLY known to
    the bank
  • performs documentary check on the clients
    financial statement
  • scheduled clients visits.

12
Policy highlights Transactions Monitoring
  • Unusual suspicious transactions
  • Strict control procedures allows for the
    monitoring of client day-to-day business
    activities using provided or additionally
    requested documentation
  • Bank does not perform transactions by order of
    third parties

13
Policy Highlights Changes Modifications
  • Policy correction and reviews
  • Compliance Policy is reviewed and amendments to
    it are proposed by the Board throughout the year
  • Council of the Board approves amendments to
    Compliance Policy once per year
  • Regulatory documents are changed in accordance to
    the changes in LR, European International Laws.

14
Policy Highlights Educational Approach
  • Obligatory staff training allows for
  • Thorough understanding of compliance procedures
    achieved through training of both new and current
    employees
  • Testing is done with the direct involvement of
    LBB management
  • Training is conveyed on a quarterly basis, or,
    in case of changes in internal or external
    regulations ad hoc.

15
Policy Highlights Compliance Department
  • Established in 07.2004
  • Basic functions
  • Client documents appraisal on account opening
  • Monitors account transactions, incoming and
    outgoing deals
  • On the basis of monitoring informs the Bank
    management and advises appropriate actions
  • Personnel Compliance training
  • Side-by-side working relations with governmental
    institutions that are involved in AML effort.

16
Executive Summary
  • Latvijas Biznesa banka AML policy is fully intact
    with Latvian, European International
    Regulations
  • Policy is strictly enforced by internal
    mechanisms
  • Permanent monitoring is conveyed by FCMC,
    external auditors and shareholders.
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