Fintelekt Advisory Services and the Asian Bankers Association jointly organised a virtual workshop on Enhanced Due Diligence on December 3, 2024.

The resource person for the workshop was Chen Jee Meng, Head of Financial Crime and Compliance at Maybank Singapore, and an empaneled trainer with Fintelekt. Arpita Bedekar, Chief Operating Officer, Fintelekt Advisory Services facilitated the programme.

The virtual workshop was well attended, with participants from 10 countries and 18 institutions, including banks, regulatory bodies, investment firms, trust service providers, casinos, financial services and life insurance companies.

This workshop provided participants with a roadmap to strengthen their organization’s risk management practices. By integrating robust due diligence processes, enhanced monitoring, and effective governance, financial institutions can proactively mitigate risks, comply with regulations, and foster a culture of vigilance.

Jee Meng provided a comprehensive overview of Customer Due Diligence (CDD) processes, emphasizing the critical need for financial institutions to understand and manage customer risks. He outlined the three key aspects of CDD: onboarding new customers, monitoring existing customers based on triggers, and ongoing screening.

Key takeaways from the workshop included:

(1) Risk Identification and Categorization:

• Emphasis on understanding customer backgrounds, sources of funds, and expected activities.
• Importance of categorizing risks such as client, industry, jurisdiction, delivery channel, and product risks during onboarding and periodic reviews.

(2) Enhanced and Ongoing Due Diligence:

• Best practices for customer identification and enhanced due diligence techniques, including field inquiries, adverse media screening, and financial evaluations.
• Ongoing name screening, transaction monitoring and screening, risk modelling and periodic review.

(3) Handling Politically Exposed Persons (PEPs):

• Identification of PEPs and their associates and family members.
• Addressing risks associated with PEPs and procedural safeguards for their onboarding.

(4) Beneficial Ownership Identification:

• Three types of beneficial ownership – Individual, share in capital/profits or control.
• Methods to uncover ultimate beneficial owners.

(5) Organisational Roles in Effective EDD:

• Importance of a robust enterprise-wide risk management and control framework.
• Risk governance and control environment.
• Effective communication and training.

The workshop concluded with an interactive case study on identifying red flags and a Q&A session, ensuring participants left with actionable insights to address real-world challenges. All participants received a Fintelekt-ABA Certificate of Participation for attending the virtual workshop.