In today’s competitive climate, private banking professionals faced a lot of challenges. One of the key to success include a better understanding of your clients and their source of wealth. Instead of ticking boxes without understanding the rationale and implications of doing so, this course will equip you with the knowledge and skill to assess and document the sources of wealth of your high net-worth clients.
Target Audience
- Private banking heads
- Private banking relationship managers
- Private banking front office customer service officers
- Wealth KYC team
Course Objectives
To enable Private Bankers and their support staff including KYC team to be competent and committed in assessing and documenting the source of wealth for private banking accounts.
Course Outline
Introduction
- Set – Short review of AML developments
- Upset – Why must private bankers document source of wealth?
- Reset – Private bankers, especially the front office has to take active ownership of ML risks
Review of AML requirements
- Enhanced customer due diligence for private banking
- MAS guidance on private banking controls on source of wealth
Source and verification
- Typical source
- Not so typical source
- Supporting documents
- Research and other means of verification
- Special mentions
- PEPs (Panama, 1MDB)
- Country risk
Onboarding process
- Getting the prospect to tell wealth story
- Identify sources
- Documentation
- Other means of verification
- Not scientific, but do not ignore your gut
Only by the book
- Ticking the boxes
- Going strictly by the rules
- Generic rules vs special cases
Cases that went wrong
- Analyse 2 or 3 cases
- Staff can share actual or near misses, if any
Collateral benefit
- Reduce cost of operation
- Knowing customer needs — a marketing tool
- Business opportunity, recommend appropriate products
- Enhance long term customer relationship
Conclusion
- KYC, KYC, KYC
- CDD, CDD, CDD
- Risk based approach
- Continual process
Case studies/Role Play:
- Onboarding process
- Transaction review
- Revisit with focus on source of wealth due diligence - “Replay the onboarding of a complex structure of 1MDB”