The recent changes and future challenges of international anti-money laundering regulation was discussed at the seventh Compliance and Anti-Money Laundering Seminar in Riyadh, Saudi Arabia recently.

It was organised by leading source of intelligent information for businesses and professionals Thomson Reuters.

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.

The fifth panel highlighted the key trends of global organised crime.

Yaqoob Al Oraini, chief compliance officer, Saudi Hollandi Bank, said: “KYC continues to be an accurate way to identify transactions across MENA markets. 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.”  

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, 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.”

The sixth 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, The Saudi British Bank, said: “The local compliance culture needs to be a corporate culture now. It should focus on generating more revenues as opposed to managing risks. 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, Saudi Arabian Monetary Agency (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. - TradeArabia News Service