0
Standards & Solution
Event 2014
Zurich, 11 March 2014
Welcome!
2
Agenda
3
Welcome at Swiss Life Asset Management
Key developments in the European
financial industry - Role of SWIFT
Christian Kothe
Head of Central & Eastern Europe
Züric...
Access Lite2
IPLA AMH
Services
Software House
Messaging
Correspondent Banking
RTGSFX S&R
CSD ACHCorporates/IMIs
Platform
C...
EMEA 2013
6
Funds
CLSinitiative
delivery on track
455 people at
ARC
AMH
Commercial pipeline
CH customers go live
T2S
+107
...
EMEA plan for 2014
7
Services positioning & business development
• MIRS
• T2S projects/Settlement
• CLS
• Alliance Messagi...
Vielen Dank !
SR 2014 Overview
Tinne Verschueren, Standards, SWIFT
11 March 2014
Agenda
• MT Standards Release process
• MT SR 2014 Changes in Business domains
– Payments
– Treasury
– Trade Finance
– Sec...
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 11
Introduction
1 June 2013 Deadline for change requests
before end August 2013 Maintenance Working Group (MWG) meetings
13 September 2013...
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 13
Payments
Categories 1, 2 & 9 – Payments
(MT 103, MT 103 STP, MT 202, MT 202 COV, MT 203, MT 942)
Improve clarity and facilitate aut...
Feb 2014
15
Categories 1, 2 & 9 – SR 2015 and later releases
Addition of 59F and removal of free format in field 50 and fi...
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 16
Treasury
Category 3 – Treasury Markets
(MT 300, MT 304, MT 305 MT 306, MT 340, MT 341, MT360, MT361, MT
380, MT 381)
• Additional (...
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 18
Trade Finance
Trade Finance
• No changes for SR 2014
• Discussions ongoing for revamp of cat 7 in a later standards
release
19
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 20
Securities
Category 5 – Corporate Actions
(MT 564, MT 565, MT 566, MT 567, MT 568)
• Definitions updated
– Support national market pr...
Category 5 – Settlement and Reconciliation
(MT 508, MT 524, MT 530, MT 535-8, MT 540-9, MT 578, MT 586)
• New qualifiers a...
Category 5 – Trade Initiation Confirmation
& Triparty Collateral Management
MT 502, MT 503-7, MT 509, MT 513, MT 514, MT 5...
Category 5 – SR 2015
SWIFT Board requested to restrict SR 2015 for securities
• only CRs that are critical
• strong busine...
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 25
Commodities
Commodities
(MT 600, MT 601)
• Additional (optional) fields and usage rules for regulatory
reporting and clearing requirem...
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 27
SR implementation
Standards Release evolution
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 28
29
Implement SR 2014
• Impact analysis
– How many changes impact the MT messages used per
institution
– What is the impact...
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 30
SWIFT can help
Derivatives documents on swift.com
http://www.swift.com/products_services/derivatives
31
Regulatory compliance and automat...
Standards Release consultancy
• High level impact assessment
• Visualise traffic data sent/received against MT’s impacted ...
SWIFT Products - MyStandards
33
Thank you
Q&A
Coffee Break
…11:15 am
SWIFT Standards & Solutions Event
March 10, Zurich
T2S Overview
36
Charifa Elotmani, Clearing & Settlement Markets, SWIFT
...
Future EU settlement landscape with T2S
Options for Indirect Connectivity
37
Souce: European Central Bank presentation „T2...
Key concerns of ICPs
38
What will my service providers’ offering be?
How will my current communication be
impacted by my p...
How can SWIFT help address ICP’s challenges
39
Achieving a common understanding of
indirect impact of T2S on current
commu...
T2S – ISO messages for
liquidity and collateral
management
 Cash and Liquidity
management
 Auto-collateralisation
(Centr...
ISO 20022
for S&R (and CA)
 ISO 20022 for securities
in the settlement and
reconciliation (and
corporate actions)
lifecyc...
Impact assessment for T2S
Overview
• Revolves around 4 axis
(business processes and flows
and related ISO messages,
servic...
A number of MT changes have been made to maintain compatibility with
ISO 20022 as it evolves to support the requirements o...
Standards gap analysis
Example: New functionalities offered
44
sese.023
MT 543 to deliver out
a restricted balance
must be...
MyStandards for T2S and CSD Communities
Easy access to your market guidelines and adaptation requirements
45
ISO 15022
ISO...
Testing and Readiness to T2S
Our value proposition
Coordinated testing services with SWIFT
Present at every step of the pr...
47
ISO 15022
ISO 20022
ICP
T2S
ISO 20022
DiCoA
Driven by your CSDs’/
agents’ specifications
MyStandards
Readiness Portal
f...
Alliance Access Integration Platform
Additional integration functionality
SWIFT format
Financial
Applications
SWIFTNet
Int...
SWIFT offering for ICPs
Summary
49
Training on T2S functionalities,
business and messaging flows
Impact assessment
Standar...
THANK YOU
Helping Our Community Comply With
Financial Crime Regulation
Supporting material for current initiatives
Peter Haener, Ris...
FATF 16 Information quality
Compliance Analytics
Sanctions list
Mngt service
Sanctions KYC AML
Processing
services
Traffic...
Sanction Screening
Sanctions screening
complying with regulatory obligations
Subscriber
• A combination of best of breed:
– Filter applicatio...
Sanctions Screening – Customer ramp up
150 users
in 70
countries
Sanctions Screening – Roadmap
2014 2015Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Customer Screening tbd
Sanctions Screening
Screening of any...
Sanctions Testing
In a world of unprecedented complexity and
change:
• How can I be sure my screening solution protects
my institution?
• Ho...
Sanctions testing process
Define
test
objective
Download
test files
Process
test files
Upload
Hit results
View test
result...
Typically identified Sanctions Compliance
Issues
Sanctions Lists:
• Out of date
sanctions lists
• Missing list
entries
• M...
Sanctions Testing Portfolio
61
• Testing
• Defined tests
• 2 systems
• Monthly tests
• App + report
Sanctions Testing
STAN...
KYC
The Context
An unprecedented challenge to comply with KYC legal requirements
SWIFT
KYC
Registry
Complex and
inconsistent
r...
SWIFT KYC Registry in a nutshell
Your single source of correspondent banking KYC information
Industry-owned
Well establish...
Collection of data and
documents
• Structured data
• Supporting documents
• Maintenance
• Archiving and versioning
Control...
Content
Registry Content & Controls
• Comprehensive set of data
• Directly provided by the source
• Supports multiple lang...
Registry Content Structure
Entity summary
I. Identification of the Customer
II. Ownership and Management Structure
III. Ty...
January ’14
• Formal announcement
of the KYC Registry
initiative
• Start of KYC Working
Group
• Begin data collection
with...
Compliance Analytics
70
Help Banks identify possible anomalies in their
transaction activities by
• Providing an overview of the overall contex...
• Macro views
(geography, value,
currencies, volume)
• Aggregated views of
bank’s total activities
• Benchmark vs
SWIFT to...
Implementierung FundSettle ISO 20022
Projekt-Review durch SWIFT-Consulting Services
Dienstag, 11. März 2014
Coutts & Co AG...
Informationen über Coutts
Drei Jahrhunderte Fachwissen und die älteste Privatbank in UK
Coutts Fonds-Produkte
Coutts Geschichte Coutts auf einen Bli...
Business-Anforderung
Anbindung FundSettle mit ISO 20022 (…alles ‚automatisch‘ und STP…)
Xkyte
• Order Management and Trading
Avaloq
• Order Erf...
IT-Implementierung
FundSettle ISO 20022: Start auf grüner Wiese…mit dunklen Wolken…
Einlesen in Fachliteratur und FundSettle-Spezifikationen…
Implementierung in bestehende IT Landschaft…
Produktion
Failover
Module/Area Module/Area Module/Area Module/Area Module/Ar...
Projekt-Review durch SWIFT
Review-Umfang und Lieferobjekte
Xkyte
• Order Management and Trading
ISO 20022
Marktpartner
• Review der Business-Strategi...
Business Contact
Martin Rettich
Head of Operations Switzerland & Wealth Hub
E-Mail: martin.rettich@coutts.com
IT Contact
N...
Outlook
85
Thank you
Upcoming SlideShare
Loading in...5
×

Standards & Solution event - Zurich 2014

1,662

Published on

The compiled deck of presentations from SWIFT's Standards and Solution event held in Zurich on 11 March 2014

Published in: Economy & Finance
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,662
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
63
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Transcript of "Standards & Solution event - Zurich 2014"

  1. 1. Standards & Solution Event 2014 Zurich, 11 March 2014 Welcome!
  2. 2. 2 Agenda
  3. 3. 3 Welcome at Swiss Life Asset Management
  4. 4. Key developments in the European financial industry - Role of SWIFT Christian Kothe Head of Central & Eastern Europe Zürich, 11 March 2014
  5. 5. Access Lite2 IPLA AMH Services Software House Messaging Correspondent Banking RTGSFX S&R CSD ACHCorporates/IMIs Platform Compliance SWIFTRef BI Matching MyStandards MIRS Services ACCORDTM MY STANDARDS BUSINESS INTEL LITE2 LITE2 SANCTIONS REF DATA BUSINESS INTEL LITE2 SANCTIONS REF DATA BUSINESS INTEL Shared Services Standards SWIFT business model Trade SWIFT2020_Board Offsite_March14_v1.pptx 5
  6. 6. EMEA 2013 6 Funds CLSinitiative delivery on track 455 people at ARC AMH Commercial pipeline CH customers go live T2S +107 New corporates 5 New RTGSs on SWIFT Alliance Lite2 ASP model rolled out 17 CSDs signed EMEA 85% Market share 6 DCPs signed +72% SNet growth + 500 new funds pairing 100 new Sanctions Screening customers35thSIBOS 162% EBA Step2 average daily FileAct growth 2013 8.7/10customer satisfaction
  7. 7. EMEA plan for 2014 7 Services positioning & business development • MIRS • T2S projects/Settlement • CLS • Alliance Messaging Hub • Compliance portfolio –& KYC Registry • Lite2 portfolio/Converter • MyStandards • T2S implementation • Corporates • Funds & investment managers • Settlement /T2S • BI & Compliance • LVP: EBA Step2 • FINCopy and FINInform • Key clients: Continue to leverage fixed fee usage • Corporates & funds Traffic development Focus clubs Stronger take-up of new products MT/LT projects Focus Partners Expertise & Knowledge Creativity & Innovation Efficient Channel Mgt EMEA
  8. 8. Vielen Dank !
  9. 9. SR 2014 Overview Tinne Verschueren, Standards, SWIFT 11 March 2014
  10. 10. Agenda • MT Standards Release process • MT SR 2014 Changes in Business domains – Payments – Treasury – Trade Finance – Securities – Commodities • SR implementation • SWIFT’s offering for SR 2014 implementation 10
  11. 11. PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 11 Introduction
  12. 12. 1 June 2013 Deadline for change requests before end August 2013 Maintenance Working Group (MWG) meetings 13 September 2013 Board Business Committees meet 20 September – 26 October 2013 Country voting 11 December 2013 Board ratifies the country vote 20 December 2013 Standards Release Guide (SRG) published 21 February 2014 Updates to the SRG SR 2015 Advance information on 59F 28 February 2014 (Exceptional update to SRG 2014) 16 November 2014 Standards MT Release 2014 Live Standards MT Release 2014 maintenance timeline        http://www.swift.com/products_services/by_type/standards/standards_mt_maint_rel_2014  
  13. 13. PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 13 Payments
  14. 14. Categories 1, 2 & 9 – Payments (MT 103, MT 103 STP, MT 202, MT 202 COV, MT 203, MT 942) Improve clarity and facilitate automation • Market practice guideline regarding risk of paying out prior to receipt of cover payment • Align usage rule for field 53B across Payments messages • Align network validation on statement line in MT 942 with rule in MT 940 • Category n (MT n92, MT n95, MT n96): – Codes to easily identify queries related to sanctions screening and the associated answer – Code to easily identify a payment cancellation request related to fraudulent activity 14
  15. 15. Feb 2014 15 Categories 1, 2 & 9 – SR 2015 and later releases Addition of 59F and removal of free format in field 50 and field 59 Nov 2014 Dec 2014Dec 2013 SR 2014 SRG 2015 Published Nov 2016/17/…SRG 2014 Published Advance documentation for SR 2015 published with details of 59F Continuous communication about removal of 50K & 59 no-letter option 50K & 59 no- letter option removed from Payments messages Advance notification of removal of free format options Promote use of 59F before removing free format options Field 59F goes live 2 year notification of new 59F Nov 2015 Dec 2015/16 SR 2015 SRG 2016/17 Published Publish final documentation for new field option F in field 59
  16. 16. PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 16 Treasury
  17. 17. Category 3 – Treasury Markets (MT 300, MT 304, MT 305 MT 306, MT 340, MT 341, MT360, MT361, MT 380, MT 381) • Additional (optional) fields for regulatory reporting (reporting parties) and clearing requirements (ESMA/EMIR* and Dodd Frank) • Length increase for UTI*** Namespace/Issuer Code and PUTI**** • Amendement to the Industry requirements when no ISDA** Master agreement exists • ISDACN code added to Type of Agreement – Offshore deliverable CNY • New optional field Payment versus Payment Settlement Indicator * ESMA: European Securities and Markets Authority EMIR: European Market Infrastructure Regulation ** ISDA: International Swaps and Derivatives Association *** UTI: Unique Transaction Identifier ****PUTI: Prior Unique Transaction Identifier 17
  18. 18. PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 18 Trade Finance
  19. 19. Trade Finance • No changes for SR 2014 • Discussions ongoing for revamp of cat 7 in a later standards release 19
  20. 20. PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 20 Securities
  21. 21. Category 5 – Corporate Actions (MT 564, MT 565, MT 566, MT 567, MT 568) • Definitions updated – Support national market practice groups – Clarify or make less specific – Promote consistent use • New qualifiers and codes supporting industry groups • Repetitive nature of qualifiers changed • New letter options • Changes regarding FATCA * FATCA: Foreign Account Tax Compliance Act 21
  22. 22. Category 5 – Settlement and Reconciliation (MT 508, MT 524, MT 530, MT 535-8, MT 540-9, MT 578, MT 586) • New qualifiers and codes • New optional sequence (MT 530) • Qualifiers and code lists updated • Alignment of references across messages 22
  23. 23. Category 5 – Trade Initiation Confirmation & Triparty Collateral Management MT 502, MT 503-7, MT 509, MT 513, MT 514, MT 515, MT 517, MT 527, MT 558, MT 569, MT576 , • Facilitate initial public offering processing in the Indian market – New qualifiers and codes – Change repetitive nature of qualifiers – New fields • New pagination functionality to confirm unlimited number of partial fills (MT 515) • New codes 23
  24. 24. Category 5 – SR 2015 SWIFT Board requested to restrict SR 2015 for securities • only CRs that are critical • strong business case or a regulatory justification • major market infrastructure projects starting in 2015 for securities industry 24
  25. 25. PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 25 Commodities
  26. 26. Commodities (MT 600, MT 601) • Additional (optional) fields and usage rules for regulatory reporting and clearing requirements (ESMA) • Length increase for UTI Namespace/Issuer Code and PUTI • Field 77H Type, Date, Version of the Agreement becomes mandatory • Additional section on message level to indicate Industry Requirements (ISDA) SR 2015 • Introduce Network validated Rule for the use of Unit Code GOZ to indicate white metals (silver, platinum, palladium) 26
  27. 27. PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 27 SR implementation
  28. 28. Standards Release evolution PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 28
  29. 29. 29 Implement SR 2014 • Impact analysis – How many changes impact the MT messages used per institution – What is the impact level per change request • Optional changes – Analyse context – Supported in messages sent? – How to handle in back office when received? • Mandatory changes – How to implement in back office – Impact on business flows/processes • Implementation project plan
  30. 30. PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 30 SWIFT can help
  31. 31. Derivatives documents on swift.com http://www.swift.com/products_services/derivatives 31 Regulatory compliance and automation for OTC derivatives transactions • OTC Derivatives Trade Reporting to Regis-TR • OTC Derivatives Trade reporting • Use SWIFT to comply with EMIR • MarkitSERV FX Clearing Service • Derivatives CUG • UTI usage guide • Derivatives Trade Reporting to DTCC
  32. 32. Standards Release consultancy • High level impact assessment • Visualise traffic data sent/received against MT’s impacted by SR • Reduce number of CRs to be analysed • Prioritise CRs for you • A questionnaire with targeted questions to refine impact assessment 32 High level impact assessment Detailed assistance proposal Detailed impact assessment Business flows review Schemas Specifications Integration Services Q&A with Standards expert
  33. 33. SWIFT Products - MyStandards 33
  34. 34. Thank you Q&A
  35. 35. Coffee Break …11:15 am
  36. 36. SWIFT Standards & Solutions Event March 10, Zurich T2S Overview 36 Charifa Elotmani, Clearing & Settlement Markets, SWIFT 11 March 2014
  37. 37. Future EU settlement landscape with T2S Options for Indirect Connectivity 37 Souce: European Central Bank presentation „T2S: Settling without borders in Europe”, January 2012 Indirect Connectivity via several CSDs Minimizes the impact of T2S on the established structures and relationships Need to retain existing relationships with multiple service providers Indirect Connectivity via a CSD Replace existing links to agents, custodians and local CSDs Significantly reduces operating costs Indirect connectivity & standards
  38. 38. Key concerns of ICPs 38 What will my service providers’ offering be? How will my current communication be impacted by my provider’s requirements for T2S? What are the functional changes introduced by T2S? What opportunities do they bring? How can I leverage T2S opportunities without going direct? Who can help me assess the STP quality of Corporate Actions, Collateral, Liquidity communications from my different providers? …
  39. 39. How can SWIFT help address ICP’s challenges 39 Achieving a common understanding of indirect impact of T2S on current communication, operational and functional environment. The goal is to help you seize the opportunities of the newly created competitive environment Providing you with a solid framework and tools to negotiate your SLAs with your providers Helping you upgrade your proprietary or ISO communication to the enhanced « T2S » compatible messaging. Supporting you in your analysis for infrastructure rationalisation (STP, TCO programs) and help you set-up an agile, future-proof, cost-efficient infrastructure. by.. e.g. TRAINING e.g. IMPACT ASSESSMENT e.g. STANDARDS GAP ANALYSIS e.g. TESTING SERVICES
  40. 40. T2S – ISO messages for liquidity and collateral management  Cash and Liquidity management  Auto-collateralisation (Central Bank/ Client collateralisation, Limit management, ...)  Bilateral collateral management (Repo & pledge, CCP scenario, …) T2S – ISO messages for securities settlement and management  T2S message flows and related services, illustrated against a specified business context and set of actors  Case scenarios to illustrate detailed message content for settlement, liquidity management, static data T2S in 90 minutes  Impact of T2S on different market players  T2S features: lifecycle management and matching, instruction maintenance, settlement, liquidity management, accounting day 4040 SWIFT Training for T2S Understanding T2S-related messages and business flows
  41. 41. ISO 20022 for S&R (and CA)  ISO 20022 for securities in the settlement and reconciliation (and corporate actions) lifecycles  Case scenarios to illustrate detailed message content ISO 15022 enhanced for ICPs  ISO 15022 enhanced messages, the new processes and flows behind  Case scenarios to illustrate new guidelines and implementation attention points BAH in T2S environment  Use of BAH both for securities and payments ISO 20022 messages in the settlement lifecycle  The chain and various scenarios between participants, CSDs and the T2S platform 4141 SWIFT Training for T2S – a look at the future pipeline Insights on potential future modules DRAFT / UNDER DEVELOPMENT
  42. 42. Impact assessment for T2S Overview • Revolves around 4 axis (business processes and flows and related ISO messages, services available, T2S schedule, infrastructure capacity requirements) IMPACT ASSESSMENT • Provide an estimation of future volumes and optimised messaging model in a post- T2S environment. VOLUME PROJECTIONS • Identify the messages that need to be implemented and the integration and the infrastructure needs. MESSAGE IMPLEMEN- TATION EFFORTS 42
  43. 43. A number of MT changes have been made to maintain compatibility with ISO 20022 as it evolves to support the requirements of T2S. Impact of T2S on financial messaging Standards gap analysis 43 Domestic formats ISO 15022 (enhanced) ISO 20022 ICP ISO 15022 ISO 20022 T2SDiCoA Domestic ISO 20022 1. PERFORM A GAP ANALYSIS OF CURRENT VERSUS NEW 2. EVALUATE AND SELECT THE BEST IMPLEMENTATION 3. MANAGE STANDARDS DURING IMPLEMENTATION (AND BEYOND)
  44. 44. Standards gap analysis Example: New functionalities offered 44 sese.023 MT 543 to deliver out a restricted balance must be “enhanced” i.e. refer to the restriction reference. ICP T2SDiCoA MT 543 T2S will allow CSDs and NCBs to define their own restriction types. Restriction types restrict the usage of a balance: - blocking - reservation - earmarking When a certain balance becomes restricted, T2S assigns a ‘restriction reference’ to which all subsequent messages have to refer to.
  45. 45. MyStandards for T2S and CSD Communities Easy access to your market guidelines and adaptation requirements 45 ISO 15022 ISO 20022 ICP T2S ISO 20022 DiCoA  Use MyStandards to manage and publish T2S specifications  Consume the T2S specifications in MyStandards  Enrich, compare, manage and publish their internal specifications  Consume the specs of service providers via MyStandards.  Use the platform to document current capabilities and compare. ISO 15022 ISO 15022E ISO 15022E ISO 20022 Bridging the gap between ISO 15022 and ISO 20022 by introducing an intermediary layer: ISO 15022 Enhanced
  46. 46. Testing and Readiness to T2S Our value proposition Coordinated testing services with SWIFT Present at every step of the process (strategy, planning, design, execution, quality) In-depth expertise in T2S business and technical domains and extensive knowledge of local market practices Using best-in-class testing management tools, in conjunction with on-boarding and community migration services Unique integrated set of products to automate testing against T2S and CSD usage guidelines A truly pan-European experience, supporting all market players neutrally and equally 46 Customer resources Test Manager Business &Technical Experts
  47. 47. 47 ISO 15022 ISO 20022 ICP T2S ISO 20022 DiCoA Driven by your CSDs’/ agents’ specifications MyStandards Readiness Portal for T2S MyStandards Readiness Portal Migrating to new/ enhanced messaging Define scope of Implementation + business scenarios DiCoA flows with T2S MyStandards and the Readiness Portal Simplifying T2S implementation
  48. 48. Alliance Access Integration Platform Additional integration functionality SWIFT format Financial Applications SWIFTNet Interface Alliance Access FIN Interface Application Interface Message store Alliance Access Integration Platform Validation Transformation Enrichment Internal API proprietary format Connectors Customer application 48 Consulting Services Integration Platform Alliance Access Transformation Transforming a Proprietary Message… … into a valid ISO Message… …using customisable translation rules…
  49. 49. SWIFT offering for ICPs Summary 49 Training on T2S functionalities, business and messaging flows Impact assessment Standards gap analysis MyStandards (usage guidelines) Testing services and readiness Technical infrastructure review Integration services
  50. 50. THANK YOU
  51. 51. Helping Our Community Comply With Financial Crime Regulation Supporting material for current initiatives Peter Haener, Risk & Compliance, UBS AG 11 March 2014
  52. 52. FATF 16 Information quality Compliance Analytics Sanctions list Mngt service Sanctions KYC AML Processing services Traffic analysis Standards Data repositories KYC registry AML testing & tuning Sanctions Screening Sanctions Testing & tuning (transaction & client systems) Traffic restriction (RMA) Financial Crime Compliance Roadmap Live Development Qualification Exploration Quality Assurance Client/Name screening
  53. 53. Sanction Screening
  54. 54. Sanctions screening complying with regulatory obligations Subscriber • A combination of best of breed: – Filter application – Sanctions List update service – Operational excellence • Centrally hosted and operated by SWIFT • Real-time filtering service of FIN messages • No local software installation & integration project Your correspondents
  55. 55. Sanctions Screening – Customer ramp up 150 users in 70 countries
  56. 56. Sanctions Screening – Roadmap 2014 2015Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Customer Screening tbd Sanctions Screening Screening of any formats (SAF) v1: Alliance Access v2: through APIs Lifeline v0: Mizuho v1 v2: SAF as lifeline v2: integrated w/ Alliance lifeline Confirmed To be confirmed “Classic” Chinese lists OFAC 561 OFAC FSE Bulk list upload, time-out extension Tuning rules
  57. 57. Sanctions Testing
  58. 58. In a world of unprecedented complexity and change: • How can I be sure my screening solution protects my institution? • How can I demonstrate to regulators that I understand my solution and how it mitigates risks? • How can I make my screening solution more effective – and more efficient? Banks face a sanctions compliance challenge
  59. 59. Sanctions testing process Define test objective Download test files Process test files Upload Hit results View test results Formats Settings Lists Choose from a combination of - Public List - Your private lists - Risk information - Fuzzy variation Select format: - FIN MT (any type) - ISO 20022 - Customer records Download files - Manually through browser - Automatically through SFTP Process files through your filter - Apply production settings for effectiveness testing - Apply alternative settings for efficiency tuning Upload hits - Export hits to batch file - Upload via browser or SFTP View results - View, search and drill-down results on screen - Create and export reports Automate, repeat, compare, monitor
  60. 60. Typically identified Sanctions Compliance Issues Sanctions Lists: • Out of date sanctions lists • Missing list entries • Missing list entry types • Removed / deleted records still being screened • Language variants not being correctly screened • Transliteration Screening Policy: • List scope incorrect or not aligned to bank policy • Entity and alias types being unnecessarily screened • Implementation inconsistencies between filters Message Types: • Inconsistent screening performance for different message types • Message or file elements not being appropriately screened • Over-reliance on specific fields (e.g. address or country) to ensure compliance Filter Weaknesses: • Line break, word order, sequences and other issues • Poor performance against particular entries (short or long names, aliases) • Character set matching issues • Poor fuzzy matching performance • Fails to hit regulator test- cases
  61. 61. Sanctions Testing Portfolio 61 • Testing • Defined tests • 2 systems • Monthly tests • App + report Sanctions Testing STANDARD • Testing • Defined tests • 2 systems • One-off • Report Sanctions Testing ASSESSMENT • Testing +Tuning • Custom tests • Group license • Unlimited use • App + report Functions Flexibility Scope Frequency Deliverables Sanctions Testing ENTERPRISE new new
  62. 62. KYC
  63. 63. The Context An unprecedented challenge to comply with KYC legal requirements SWIFT KYC Registry Complex and inconsistent requirements across jurisdictions Cumbersome, repetitive and inefficient bilateral exchanges Unavailability and poor quality of information
  64. 64. SWIFT KYC Registry in a nutshell Your single source of correspondent banking KYC information Industry-owned Well established, neutral partner renowned for driving standardised, industry-wide solutions SWIFT KYC Registry Collaborative & user- controlled Banks submit, maintain and selectively exchange data through the platform Unique value-add SWIFT Profile increases transparency through unique, factual traffic activity report Complete & up-to- date SWIFT continuously verifies and validates the quality of the data Global Reach of 7000+ banks active in correspondent banking, representing over 1 million relationships
  65. 65. Collection of data and documents • Structured data • Supporting documents • Maintenance • Archiving and versioning Controls • Completeness, validity, accuracy Reporting and monitoring • Platform activity reporting and practices • Audit trail • Notifications of changes Value added services • SWIFT profile Inscope Outofscope Name screening • List screening (PEP, blacklist checking) • Alert management or bad press Risk scoring • SWIFT proposed risk score • Communication on (non)-accepted counterparties Due Diligence • Around intermediaries Regulatory watch and market practices • Monitoring of legal/regulatory updates What will the SWIFT KYC Registry be in its first phase
  66. 66. Content Registry Content & Controls • Comprehensive set of data • Directly provided by the source • Supports multiple languages • Electronic only • User-controlled • Fact-based and documented validation • Yearly revalidation of all information • Data quality ratings visible to all • No judgemental or opinion-making controls Controls
  67. 67. Registry Content Structure Entity summary I. Identification of the Customer II. Ownership and Management Structure III. Type of Business and Client Base IV. Compliance Information V. Tax Information • e.g. Legal and Business Name, Registered Address, BIC Code • e.g. Banking License, Certificate of Incorporation • e.g. Form of Organisation, Beneficial Owners • e.g. Targeted Customers, Geographical Markets • e.g. USA Patriot Act Certification, Wolfsberg Questionnaire • e.g. FATCA status PUBLICONREQUEST
  68. 68. January ’14 • Formal announcement of the KYC Registry initiative • Start of KYC Working Group • Begin data collection with Working Group September ’14 • Open the Registry for data contribution by a number of selected banks December ’14 • Open the Registry for data contribution and consultation by all banks • Commercial launch of the Registry Timeline The journey starts today Bootstrap Controlled ramp-up General availability
  69. 69. Compliance Analytics
  70. 70. 70 Help Banks identify possible anomalies in their transaction activities by • Providing an overview of the overall context through SWIFT total activities • Providing a comprehensive view of a bank’s transaction activities, across all subsidiaries, with all their correspondents • Helping banks analyse their transactions by benchmarking vs SWIFT totals, vs peers • Providing risk analysis tools/visuals and alerting mechanisms to help detect potential anomalies Objective Compliance Analytics – Leveraging SWIFT traffic data for risk monitoring RISK MONITORING
  71. 71. • Macro views (geography, value, currencies, volume) • Aggregated views of bank’s total activities • Benchmark vs SWIFT totals • Feed AML and Sanctions risk assessments • Prepare country visits • Alerts in case unexpected behaviour or activity outside of acceptable thresholds (e.g. dormants, outliers, spikes) • Drill down to identify reasons of alerts • SWIFT as a neutral 3rd party source • Internal and external reporting • Assurance - reconcile volumes and values • Challenge compliance with own policies and controls - provide proof • Challenge settings of monitoring systems. Value proposition Identify and target highest risks Challenge own controls Anticipate threats and trends Report Institution SWIFT 71
  72. 72. Implementierung FundSettle ISO 20022 Projekt-Review durch SWIFT-Consulting Services Dienstag, 11. März 2014 Coutts & Co AG, André Keller
  73. 73. Informationen über Coutts
  74. 74. Drei Jahrhunderte Fachwissen und die älteste Privatbank in UK Coutts Fonds-Produkte Coutts Geschichte Coutts auf einen Blick • Hauptsitz von Coutts & Co befindet sich in London • Der Sitz von Coutts & Co AG befindet sich in Zürich • ~ 5’000 Mitarbeitende • ~ £ 85 Mrd. verwaltete Vermögen, Einlagen und Kredite • ~ £ 172 Mio. Betriebsgewinn • 1692 John Campbell, Schottischer Goldschmied und Bankier, eröffnet sein Geschäft an der Adresse ‘Strand’ in London. • 1755 Erstmalige Erwähnung des Namens ‘Coutts’: James Coutts, Schottischer Bankier, heiratet in die Familie ‘Campbell’ ein. • 2000 Coutts wird die internationale Private Banking-Einheit der Royal Bank of Scotland Group. Coutts Kundenstruktur Fussballstars Popstars Eigene Fonds • Equator Investment Programmes (IR) • Equator Investment Fonds (GB) • Hedge Funds/Structured Funds • Transactions/month: 73‘000 Drittfonds • Plain Vanilla Funds • Mutual Funds • Hedge Funds • Transactions/month: 86‘500 Quelle: Google (neun Monate bis September 2013) Coutts Multi-Asset Funds (CMAF) A range of funds which aim to deliver attractive long-term return by investing in a broad range of asset classes such as cash, bonds, equities, commodities and property.
  75. 75. Business-Anforderung
  76. 76. Anbindung FundSettle mit ISO 20022 (…alles ‚automatisch‘ und STP…) Xkyte • Order Management and Trading Avaloq • Order Erfassung FundSettle Marktpartner Redemptions Subscriptions Switches Adam plc Hong Kong UK Singapore Switzerland Monaco Avaloq • Auswahl Business Unit Transactions …AufträgevonKunden …AufträgevonCouttsFonds-Managern ISO 20022 ISO 15022
  77. 77. IT-Implementierung
  78. 78. FundSettle ISO 20022: Start auf grüner Wiese…mit dunklen Wolken…
  79. 79. Einlesen in Fachliteratur und FundSettle-Spezifikationen…
  80. 80. Implementierung in bestehende IT Landschaft… Produktion Failover Module/Area Module/Area Module/Area Module/Area Module/Area Module/Area Module/Area Module/AreaModule/Area
  81. 81. Projekt-Review durch SWIFT
  82. 82. Review-Umfang und Lieferobjekte Xkyte • Order Management and Trading ISO 20022 Marktpartner • Review der Business-Strategie • Sicherstellung einer ‚lift and shift‘ – Strategie (Austauschbarkeit von Marktpartnern) • Identifizierung von Abweichungen bei den Vorgaben von FundSettle und SWIFT-Standard • Review von Business-Prozessen • Überprüfen der unterschiedlichen XML-Ausprägungen von Coutts- Transaktions-Typen • Sicherstellung Abwicklung von Spezialfällen… • …z.B. Dilution Levy, Discounts • Review von XML-Messages • Welche Messages werden nicht benötigt? • Vergleiche zu Markt-Standards (SMPG) • Vergleich zu lokalen Standards (SKFS)
  83. 83. Business Contact Martin Rettich Head of Operations Switzerland & Wealth Hub E-Mail: martin.rettich@coutts.com IT Contact Norma Arter Head of Application Management Wealth IT E-Mail: norma.arter@coutts.com
  84. 84. Outlook
  85. 85. 85 Thank you
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×