Anti money laundering drive: Bankers join key Riyadh talks

(MENAFN- Arab News) RIYADH: While KYC (know your customer) remains the most accurate way to identify transactions across the Middle East and North Africa (MENA) markets the region's companies need to perceive regulation as a driver for their business growth. Also the GCC's compliance culture needs to be a corporate one and the compliance officers need to balance between handling regulation and managing commercial relations.

These were among the recommendations proposed by panelists at the 7th Compliance and Anti-Money Laundering Seminar in Riyadh.
The two-day event was organized by Thomson Reuters and Institute of Finance of Saudi Arabia.
In the context of the recent changes and future challenges of international anti-money laundering regulation Adel Al-Qulish executive secretary MENAFATF explained that diversifying risk is not an easy exercise anymore and the private sector plays an important role on that front.
'KYC continues to be an accurate way to identify transactions across the MENA markets' said Yaqoob Al-Oraini Saudi Hollandi Bank's (SHB) chief compliance officer while participating in a panel discussion which highlighted the key trends of global organized crime.
'This data base is now the most vital element in the risk management world across the region. Our systems should be designed to report on high risk transactions' Al-Oraini added.
Mohammed Daoud head of governance risk and compliance solutions MENA Thomson Reuters pointed out that risk and compliance offers need to have a balanced approach by handling the complexity of regulation and also managing commercial relations with other counterparts.
Arz El Murr financial sector expert International Monetary Fund (IMF) said: 'Financial institutions in the GCC need more guidance and an appropriate understanding on what is expected from them in order to feel comfortable. The financial system is changing and requirements of MENA consumers are significantly being impacted.'
Another panel debated how to build a culture of compliance and the growing focus on conduct risk and corporate governance.
Ali Al-Qahtani head of anti-money laundering Saudi British Bank (SABB) said: 'The local compliance culture needs to be a corporate culture now. It should focus on generating more revenues as opposed to managing risks.'
Ali Al-Qahtani said: 'Saudi Arabian Monetary Agency (SAMA) was very active and managed to successfully create committees that touched all aspects of compliance. As result we have seen an increase in compliance implementation by companies driven by a strong board desire to push the compliance agenda in the Saudi market and beyond.'
Mohammed Al-Aqeel head of banking processes SAMA said: 'The interaction between government entities and financial institutions is a significant part in the compliance story. As part of its awareness plan SAMA recently introduced new directives to the local banks in order to help them identify potential risks from a legal standpoint. The response from the local banks and financial institutions was very strong and promising.'
Mohammed Khamis senior specialist governance risk and compliance Thomson Reuters explained that achieving real value of compliance is connected to changing the perception of compliance in companies.
'MENA companies should now perceive regulation as a driver for their business growth and a tone set from the board is required to achieve an effective compliance process' he noted.
The seminar was supported by major banks and financial institutions including Banque Saudi Fransi (BSF) Samba Bank Al Bilad Al-Rajhi Bank The Saudi Investment Bank SABB SHB Al Ahli Arab National Bank Riyad Bank CCL and J Awan & Partners.