This document provides an agenda and summary for a financial crime compliance event. It discusses key areas of focus in financial crime like sanctions, transaction monitoring, and know your customer processes. It also summarizes salary and bonus trends in these areas for Hong Kong. Regulatory changes like the AMLO ordinance and upcoming FATF assessment are driving increased hiring. However, firms have also been more cautious in their hiring plans. The document promotes an upcoming networking event on whether "the good guys can win" against financial crime.

1. AGENDA
MARKET TRENDS
AREAS OF SPECIALISM
FINANCIAL CRIME MARKET UPDATE
• Areas of specialism
• Market Trends
• Salary Survey
• AML
• Sanctions
• Know Your Customer
• Investigation
• Financial Crime Audit
• Anti-Bribery Corruption
• Bonus Reports
• Eximius sponsored Financial Crime BAML event
eximius financial
We currently partner with top tier investment, corporate and private banks as well as consultancies who have a focus within
financial crime and across the APAC region.
Areas of focus in financial crime are being driven by evolving regulatory requirements with increased levels of hiring across
Sanctions, Transaction Investigations and KYC.
• SANCTIONS
VP to SVP is the level with highest demand as sanctions is a relatively new market in Asia. This has led banks to search for
candidates outside of the APAC region and/or from other sectors outside of financial services. To counter the high demand
for such a specialist skillset, banks like Citibank have offshored portions of this department to India in a bid to lower cost.
• TRANSACTION MONITORING/INVESTIGATION
Manager/AVP level continues to be the level in highest demand. A number of our clients have shown high levels of interest in
investigators currently working in banking and regulatory bodies. At this level of expertise, a number of short term moves are
becoming the norm for candidates in Hong Kong causing discussion around attraction and importantly retention of talent.
• KNOW YOUR CUSTOMER
Manager/AVP to VP is the level with highest demand. However, in recent months demand across Hong Kong has decreased
with a growing trend of KYC teams moving to offshore locations. For example, last month JP Morgan relocated a part of their
private banking KYC/account opening function from Hong Kong to Singapore.
COMPETITIVE TIMES
Firms are facing huge demands in the above areas compounded by unusually high turnover rates. In the first quarter of 2016, it’s
worth noting that a top tier bank witnessed 3 resignations in their FCC team, before bonuses were announced. However, there is
the shift in the mentality of candidates with 3+ year’s industry experience as they are becoming aware of the negative effects in
changing employers multiple times over a short period of time.

2. SALARY SURVEY FINANCIAL CRIME COMPLIANCE 2016
FCC
A/Assoc
AVP
VP
D
MD
Years of Experience
1>5
5>8
8>14
14>20
20+
Local & Regional CIB
240,000<480,000
480,000<700,000
700,000<960,000
960,000<1,500,000
1,500,000+
Global Bank
240,000<540,000
540,000<780,000
780,000<1,300,000
1,300,000<1,850,000
1,850,000+
eximius financial
POWER SHIFT
This leads us to the topic of power shift as mentioned by Maggie Qiu, Regional Head of Sanctions - Standard Chartered Bank in
an article published on “A closer look at winning the anti-money laundering talent.”
The market has witnessed power shifting from banks to the hands of senior AML officers who are increasingly responsible to
promote ethical business activities which again emphasize the need to retain the right talent. We believe a strong strategy around
rewarding/empowering top performers and providing effective on the job AML specific training is a key to retain high
performers in this market. For example, BNP Paribas run their own academy training in the form of internships, seminars and a
graduate compliance program to train, develop and retain employees.
AMLO ORDINANCE AND FATF
One of the key regulatory requirements driving AML hiring in Hong Kong is the AMLO ordinance and upcoming FATF assessment
in 2018/2019. Recently, the HKAB guidance has gained importance in Hong Kong which specifically refers to the fact that HKMA
expects the banks to give full consideration to the adoption of practice of HKAB guidance. While financial crime continues to be
hot, Eximius has observed that firms have been more strategic and cautious with hiring plans over the past six months. On top of
this we expect that AML/Financial Crime will continue to be buoyant, especially for banks that lack sufficient AML control in
international trade, KYC, transaction monitoring and sanctions.
OPPORTUNITY
The compliance sector in general continues to be fiercely competitive when looking at the retention and attraction of talent. We
are seeing a number of our clients take internal actions to retain top performers at the Director/VP level as this is where majority
of external demand is focused. This apparent shortage of skillsets is forcing businesses to look outside of Hong Kong, although
preference is for locally trained and/or Asia based employees. Also banks are being creative by looking for talent outside of
compliance with transferable skills and a good understanding of the front to back operations of the firm.

3. eximius financial
Status
Quo
32%
Increased
31%
5-10%
Increase
23%
1-5%
Increase
62%
>10%
increase
15%
Decreased
37%
BONUS TRENDS
BONUS REPORT - HONG KONG 2016
The Eximius Risk, Compliance and Audit teams during Q1 of months of 2016 have surveyed 172 professionals in Hong Kong. Our
goal was to understand how financial services firms are coping with increasing costs of human capital across the compliance
functions. The overriding good news is that 98% of the professionals surveyed did achieve a bonus.
The common theme of an increased bonus pool was in conjunction with a decreased salary pool. Eximius paid attention to this
strategy in 2015 and have certainly noted it in 2016. If 2015 was more focused on salary increment, 2016 has seen the emphasis
shift towards end of year bonuses.
Hong Kong professionals seem to have realigned expectations. Of those surveyed we asked “how do you feel about your bonus
and increment”? The response was that 60% stated the following comments: “as expected” and “no surprises”. Of the survey we
executed this year only 12% achieved a bonus higher than 25% of annual basic salary.
Initially HSBC announced no salary increments for employees but as we moved into 2016, this announcement was subsequently
retracted. Our survey found 60% achieving an increment on salary compared with 80% achieving a bonus.
One expert commented, where a financial crime division is split across BAU and change, it was the change staff that were pegged
“critical” and even those that fell into the average category of appraisal, achieved a bonus. If you compare this to BAU staff
(excluding management and high performers) who were not afforded such a luxury and pegged as replaceable.
Reshma Gope, Consultant
Reshma has been in the recruitment industry since
graduation. She demonstrates her excellent
industry network and market insights in
Compliance, Investigations and Financial Crime
Prevention sectors as well as professional
follow-through at all of her clients and candidates.
Email: reshma.gope@Eximius.com
Direct dial: +852 3978 5034
hk.linkedin.com/in/reshmagope
This update was produced by the compliance team at Eximius Group, Hong
Kong. If you would like a confidential discussion around these changes and
hiring strategies please feel free to contact Reshma Gope on:
+852 3978 5034 or reshma.gope@eximius.com
Kate Reid, Associate Director
Kate has been in the industry for 11 years, seven of
which in Hong Kong. Kate delivers talent services
to both candidates and clients across the region,
managing a team of specialist recruiters in risk,
compliance and audit. Kate is also a steering com-
mittee member of Women in Finance Asia, Mentor
to the HKU MBA Women in Leadership club. She is
the founder of Suits for Success Asia, in addition
Kate leads corporate relations and fundraising for
Project Share, a charity that works to bridge the
social divide for less privileged youths in Hong
Kong.
Email: kate.reid@Eximius.com
Direct dial: + 852 3978 3050
hk.linkedin.com/in/kateharper
AVERAGE BONUS PAYMENT FOR 2015 PERCENTAGE INCREASE IN BASIC SALARY
CONTACT US

4. eximius financial
2016 NETWORKING SERIES
WOMEN IN FINANCE ASIA
Cordially invites you to participate in a networking
event:
Date: Wednesday, 20 Aprial 2016
Time: 6:30pm-9pm
PANEL DISCUSSION ON “FINANCIAL
CRIME: CAN THE GOOD GUYS WIN?”
Moderated By:
Anna Stephenson
CEO, Inflection Point Solutions Ltd
It seems like financial crime is in the newspaper
headlines every week, from Ponzi schemes to money
laundering, from cyber-scams to bust-out fraud.
Our panel of crime-fighting specialists come from
a variety of backgrounds and bring different
perspectives to the never-ending battle against the
bad guys.
Join to discuss:
• How financial crimes are morphing as technology
advances
• Who commits financial crimes and why
• What companies and governments are doing to
detect and prevent financial crimes
• Secrets of life as an undercover cop
Sponsored by:
Hosted by:
SPECIAL GUEST PANELISTS
Russell Harding
Regional Head of Financial Crime
UBS
Russell spent 20 years with the HK
police force putting money
launderers in prison, and now the
last 18 months with UBS keeping
people out of prison for money
laundering.
Susan Jenkins
Regional Head of Employee Relations
Bank of America, Merrill Lynch
Susan brings the HR perspective to
out panel, focusing on criminal
motivation, employee crime prevention,
whistle-blowing etc. Her significant
experience in all aspects of HR across
Europe, the Middle East and Asia give
her unique insights into employee-
related crime.
Bill Majcher
President
EMIDR Ltd
Bill has actually been a money
launderer for a Colombian cocaine
cartel, during his career as a covert
operative for the RCMP. He also
trained covert operators on how
to defeat banks’ AML controls. He
now specialises in military grade
cyber-security and unconventional
solutions.
Adelene Wee
Group Head -
Fraud Prevention & Integrity Risk
Hill & Associates
As a senior executive at a risk
mitigation consulting company,
Adelene advises her clients on
matters of integrity such as in the
areas of compliance, fraud, bribery
and corruption. She is the China
expert on our panel and brings
insights into the practical risk issues
of corporate governance in Asia.
Venue:
BAML, Hong Kong Office
55/F, Cheung Kong Center
2 Queen’s Road Central
Hong Kong Cost: Free
Registration:
www.asifma.org/wifa/events
If you are unable to attend, you may send an
alternative attendee.
Contact:
grace.lee@wifasia.org