Title: Compliance: policy and implementation
1Compliance policy and implementation
2Table 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
3AML 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.
4Latvian 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
5Internal 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.
6Internal 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.
7Internal Guidelines and Procedures Scheme
Prevention of Laundering of Proceeds Derived from
Criminal Activity (AML) Control Organisation
Scheme
8Internal 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
9Internal 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
10Policy 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.
11Policy 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.
12Policy 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
13Policy 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.
14Policy 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.
15Policy 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.
16Executive 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.