AMLA risk analysis & control of AML risk policy

Analysis of inherent risks, risks measurement, mitigation measures, controls: how to comply with the new FINMA guidance (Supervisory notice 05/2023)?

8.40 Risk analysis, risk tolerance, risk policy: what do these concepts mean? What is the purpose of these obligations?

• Understanding the key notions and expectations in relation to each other
• What is the content of the AML risk analysis? Why is it useful?
• What is the relation between AML risk analysisand the determination of the criteria of enhanced risks (art. 13 AMLO-FINMA)?
• What are the structural elements that constitute the preliminary condition of an AML risk analysis: defining risk tolerance etc…
• What is the risk tolerance / risk appetite? What role does it play? What are the factors to take into account to determine the risk tolerance? Why must risk tolerance be defined before the AML risk analysis? How must be defined the process of « exception to policy »? How to monitor the respect of the risk tolerance: the issue of the key risk indicators (KRI)
• What is the relation between risk entre tolerance and risk policy? What is the difference between them?

Olivier Maes, Executive Director, Governance, Risk and Compliance Services, Mazars, Zurich

9.40 AMLA risk analysis: what are the practical expectations, and the mistakes to be avoided

• The table of risks analysis
• The analysis of inherent risks
  • how to determine the inherent risks
  • how to measure them
• The mitigation measures (control risks)
  • examples of mitigation measures, how to describe them?
  • the issue of the objective measurement of the mitigation measures
  • can a measure of « Enhanced due diligence » be considered as a mitigation measure?
• FINM’A’s expectation relative to the modifications of risks (inherent risks, controls risks and residual risks) from one year to the next

Ylenia Walser, Manager, Financial Services, Consulting, Regulatory & Compliance, KPMG AG, Zurich

Stefan Fehr, Manager, Financial Services, Consulting, Regulatory & Compliance, KPMG AG, Zurich

10.40 Coffee break

11.00 How to implement the rules of the art 13. al2bis of AMLO-FINMA: business relations with increased risks and risks analysis

• Criteria that indicate increased risks relations and link with the analysis of AML risks
• How to present in a manner that is understandable for third parties the risk criteria in an analysis of risks
• Internal regulations expected by FINMA to transparently and conclusively address the criteria and risks

Dr. Kaspar Luginbühl, Attorney I M.C.L. (Cambridge) I Founder, Nomos Law, Zurich

11.30 How to control the respect of AML risk policy

• How to take into account the risk analysis in the risk policy and in the commercial strategy
• The verification of the compliance of the existing clients segments with the target markets and the strategic clients segments defined in the commercial strategy and in the risk policy
• Identifying the criteria of risks analysis when the offering of services and the composition of the clients change
• FINMA’s criticism relative to the absence of precise (number) indicator to determine the importance of each risk exposure in the overall client population and in the range of services: how meet the requirement concretely?
• FINMA’s criticism relative to the absence of precise (number) indicator on the controls of risks: how meet the requirement concretely?
• FINMA’s criticism relative to the lack of definition of the limits of risks
• The issue of the measures to be taken in case of non-compliance to the risk tolerance: what measures (examples)? Which timeframe?

Mathias Nadig, Manager, Advisory | FS Compliance & Regulation Services, PWC, Zurich

12.30 End of the seminar