Bankers from India, Maldives, Nepal and Vietnam participated in the “Anti-Money Laundering & Counter-Terrorism Finance (AML/CFT)” hosted by Fintelekt Advisory Services (Fintelekt) in Mumbai, India on October 12-13, 2023 at The Orchid Hotel.

 

Day One

Welcome Remarks and Introductions

The first day session started with Welcome Remarks by Mig Moreno, Deputy Secretary-Treasurer, Asian Bankers Association. He introduced the ABA work and objectives and encouraged participants to take advantage of the knowledge and networking opportunities arising from the two-day training in Mumbai. His remarks highlighted ABA’s commitment to fostering regional collaboration in banking and finance. Mig Moreno emphasized the importance of active participation, urging attendees to view the sessions as a springboard for implementing best practices in their home institutions. His presentation was followed by the self-introduction of each participant.

 

FIRST SESSION: AML/CFT Trends in Digital Payments

The first session was AML/CFT Trends in Digital Payments by Shirish Pathak, Managing Director, Fintelekt Advisory Services. Shirish discussed the need to encourage collaboration among departments currently working in silos. He reiterated the importance of compliance in banking operations, given that by 2023, the cost of compliance stood at $206 billion worldwide, divided across four major regions: US and Canada at US$61 billion, Middle East and Africa at US$85 billion, APAC at US$45 billion, and LATAM at $15 billion. In addition, Shirish highlighted the role of real-time payment systems in expanding financial inclusion while posing new compliance challenges. He stressed the importance of cybersecurity technology to detect emerging risks, particularly in cross-border transactions.

 

SECOND SESSION: Cybersecurity and Fraud Monitoring

The second session on Cybersecurity and Fraud Monitoring by Harshit Baxi, Director, EisnerAmper. Harshit discussed the current status of regulatory obligations to control attacks, fraud, and false positive management. Harshit elaborated on how financial institutions are leveraging new technologies such as AI and machine learning to enhance fraud detection capabilities. He also shared insights into balancing cybersecurity investments with operational efficiency.

 

THIRD SESSION: Managing AML/CFT Risks in a Fintech

In the afternoon, the third session on Managing AML/CFT Risks in a Fintech by Ashutosh Naik, Chief Compliance Officer, Groww. Ashutosh examined the interplay between rapid innovation and regulatory requirements in the fintech space. He outlined best practices for embedding compliance into the product design phase and emphasized the critical role of data-driven risk assessment tools to manage evolving threats in fintech ecosystems.

 

FOURTH SESSION: How Aadhar + CKYC is Fostering Fintech Growth

The fourth and final session of the day was on How Aadhar + CKYC is fostering Fintech Growth by Sagar Tanna, Founder & CEO, TSS Consultancy. Sagar explained the success of utilizing Aadhar and CKYC to streamline customer onboarding. He also touched on the broader implications of these frameworks for financial inclusion.

 

Day Two

FIRST SESSION: Financial Crime Technology Landscape & Trends

The first session on Financial Crime Technology Landscape & Trends by Sachin Shah, SME – Financial Crime Compliance Advisory, Tata Consultancy Services. Sachin delved into the transformative potential of blockchain and other emerging technologies in enhancing transparency and traceability in financial transactions. He also discussed the role of predictive analytics in identifying high-risk entities and improving the accuracy of compliance reporting.

 

SECOND SESSION: Managing Regulatory Expectations around Digital Payments

The second session on Managing Regulatory Expectations around Digital Payments by Theresa Karunakaran, Trainer, Fintelekt. Theresa discussed the current regulations on crypto and the potential CBDC (Central Bank Digital Currency) as banks request a low-cost, low-risk medium of exchange. Nevertheless, cash is still needed. She also explained that regulations must seek three goals: (1) Foster innovation, (2) Financial inclusion, (3) Extension of financial services. Concerning digital lending, she emphasized collaboration with service providers and better KYC given the fact that the market is unregulated. She expects an increase in fintech. Theresa also highlighted the need for dynamic regulatory frameworks to accommodate rapidly changing payment systems.

 

THIRD SESSION: Group Work and Discussion on Initiatives across Financial Institutions

The third and final session was Group Work and Discussion on Initiatives across Financial Institutions in Asia and Experiences of Participants in Managing AML/CFT Risks, facilitated by Arpita Bedekar, Director of Strategy & Planning, Fintelekt. During the exchange of views, many participants shared the current compliance conditions, especially the personal liabilities regulations vis-à-vis emerging challenges posed by digital transactions, as more and more banking and financing will be done remotely. The group discussions highlighted regional variations in compliance maturity and strategies for tackling AML/CFT risks.

The two-day training in Mumbai concluded with a Vote of Thanks & Presentation of Certification followed by a Group Photo.