The global remittance industry saw approximately $582 billion transferred in 2014, representing a five per cent growth from the previous year, said a top official.

Osama Al Rahma, chairman of Foreign Exchange and Remittance Group (FERG), was speaking at the recent ACAMS Conference in Dubai, UAE.

The two-day conference gathered anti-money laundering and financial crime prevention together with regulators and government experts in a knowledge-packed discourse on global best practices against financial crime.

“At the same time, regulatory fines, settlements and penalties for the year totalled $57 billion,” explained Al Rahma said during his presentation.

“It is essential in creating a transparent financial system and empowering people with limited access to banks. That’s why we advocate a risk-based approach that takes into account inherent challenges.”

FERG comprises businesses engaged in money exchange and remittance businesses, with some 974 plus represented branches across the UAE. The Group affirmed its support of ACAMS by coming on board as a supporting sponsor.

“The ACAMS Conference is a valuable forum for the exchange of risk management strategies, AML best practices and countering illicit finance,” Al Rahma continued.

“The idea we promulgate is that one size doesn’t fit all – not all transactions carry the same amount of risk. And while banks are wary of the sector due to fear of regulations, abandoning it will strengthen the grey market.

“The order of the day is to collaborate, work with all stakeholders, conduct due diligence on transactions, and maintain duly parsed customer data. The ACAMS Conference’s main objective is in line with FERG’s vision of building a secure and innovative remittance sector,” he added.

Topics under the spotlight at the ACAMS Conference included new criminal schemes, and expectations for regional regulations. The new round of FATF mutual evaluations and potential effect in local regulation drew discussion. Terror finance typologies and risk assessment methodologies were also on the agenda.

The ACAMS schedule also featured an interactive workshop on sanctions and enforcement actions, and a hands-on breakout session on risk assessment.

“Remittances increase human capital stock, and facilitate productivity. These drivers in turn contribute to investments in education, food security, women’s economic empowerment, and entrepreneurship. That’s why FERG calls for across the board collaboration with stakeholders to unify AML/CTF definitions, and standardises terminologies and processes,” Al Rahma concluded.  – TradeArabia News Service