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IBS Journal November 2015


Chee Kin Lam, DBS Bank © Sibos


needs to be more discussion in the future, but says ‘tensions will continue’. Lam agrees with the concept of


‘disconnect’ but asks the audience to think of it from the ‘enforcer’s perspec- tive’. He says big banks ‘don’t touch SME clients and are pushed by priority spending’. Rosenthal asks the panel if they


opinion echoed by the audience vote. Chee Kin Lam, head of compliance


at DBS Bank, isn’t surprised by the vote and says ‘the overheads from AML are causing us to exit sectors’. At the other end of the spectrum, in


terms of size, is Indonesia’s Bank Mandiri – represented by Ferry Robbani, head of international banking and financial insti- tutions group. He expresses some frustration at


the current state of affairs. Robbani says: ‘We are used to strin-


gent environments – like Singapore, Hong Kong and London. These are not allowing us to serve our customers – too many payments are rejected. It has affected us and it’s worrying.’ These anxieties are shared by


Andrew Yiangou, MD global transaction banking solutions at National Australia Bank (NAB). Yiangou says: ‘I have a strong view


on this. I don’t agree with the daily stuff going on and we are in a mess. In all walks of life, we love kicking the small- er guy. ‘It’s not the bigger bank’s fault as it’s


pushed down upon them. I have con- cerns as the big banks get all the fines, yet the response is to kick out the small bank.’


Jared says there is a ‘disconnect’ and


thinks there is a ‘perception of zero tol- erance’. He says the costs are fixed for banks of all sizes – and describes the expense as ‘incredible’. He thinks there


are able to have an open conversation with the regulators; and Robbanire- sponds that Bank Mandiri does speak to the government but adds ‘we can’t do transactions in certain countries due to the regulations’. It is clearly an issue important to him and he wants open discussions.


War on terror The panel moves onto ‘rules devised around terror controls’. With the rise of ISIS (aka IS) and other terror organisa- tions, there is concern about how they are funded. Yiangou thinks the Financial Action


Task Force (FATF – which sets stand- ards for ‘combating money laundering, terrorist financing and other related threats’) is working on solutions and it’s heading in the ‘right direction’. But he says overall there is ‘not


enough clarity’ and there is ‘too much scare mongering about payments from certain jurisdictions. One model does not fit all’. Yiangou adds: ‘Most banks are not


global. We [NAB] are big in Australia but we process payments into our own


markets’. Because of this and how regula-


tions are applied, he thinks the relevant people in the industry are ‘not on the same page’. Rosenthal is keen to pick up on this


point and asks Jared whether a ‘different playing field’ is needed. His response is indirect but hints at


‘no’. He thinks every bank of any size has to ‘virtually do the same thing’ and the ‘relationship between bank and corre- spondent is always the same’.


Be good The next topic from Rosenthal touches on the ‘narrowing of options’ and where the panel ‘see it playing out and the consequence for banks’. Robbani says: ‘We have systems in


place and try to be a good boy in the scheme of things, so payments can be processed. If we’re not in full compliance our customers will suffer. ‘Europe is getting more stringent


and we need to set standards, otherwise some payments will get filtered and costs will get higher’. He gives an example of migrant


workers. Their ‘typical flow of payments is in very small amounts’ yet they get fil- tered by the banks, who ask the same questions about ‘what is this’ and so on. Robbani describes this as ‘very tedious’ to deal with. These ‘false positives’ are patent- ly causing smaller banks problems and Yiangou is also annoyed by them.


© Sibos


32


© IBS Intelligence 2015


www.ibsintelligence.com


sibos 2015


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