Financial Crime Risk & Policy Group

Money laundering, the financing of terrorism, financial fraud and other financial crimes can have significant negative economic effects. Financial crimes activities severely undermine the integrity and stability of financial institutions and systems, discourage investment into productive sectors, and distort international capital flows. 

Financial Crime Risk & Policy

In addition, trade finance has been an area of growing attention in the past few years. The Financial Action Task Force (FATF), the Wolfsberg Group and the Joint Money Laundering Steering Group (JMLSG) have all drawn attention to the misuse of international trade finance as one of the ways criminal organizations and terrorist financiers move money to disguise its origins and integrate it into the legitimate economy. The complexity of transactions and the huge volume of trade flows can hide individual transactions and help criminal organizations to transfer value across borders. Action to prevent and combat money laundering and terrorist financing thus responds not only to an oral imperative, but also to an economic need.

As a result, the ICC Banking Commission has made the fight against money laundering and terrorist financing a priority. In 2008, the ICC Banking Commission created an Anti-Money Laundering (AML) Task Force to address some of the key challenges posed by financial crimes influencing international trade practices. At its bi-annual meeting in Dubai in April 2014, the ICC Banking Commission again recognized the need to reinforce its activities on financial crimes prevention and took the decision to reorganize its existing Task Force by transforming it into a “Financial Crimes Risk & Policy Group” with a broader remit to account for the diversity of issues facing the industry at present time.

Download the latest Guidance Paper on the use of Sanctions Clauses in trade-finance related instruments subject to ICC Rules (version 1238) - Click here

Financial Crimes Risk & Policy Group

The remit of the group is to interact with, and draft guidance, policy submissions and response to regulators, industry groups and members on all topics related to financial crime risk issues affecting the banking industry.

The core subjects to be covered are

  • Financial crime including financial fraud, tax evasion and other predicative offences related to
    trade products and services
  • Sanctions regulations and consequences of not understanding the requirements
  • Customer Due Diligence requirements
  • Know your customers customer and correspondent banking requirements
  • AML in respect of trade
  • Terrorist finance and weapons proliferation

Governance & Membership

The Group will be chaired by Neil Chantry (HSBC). If needed, a co-chair will be nominated from the core group membership. Thierry Senechal will serve as the Executive Secretary and provide support to the group. The ICC Banking Commission Executive Committee will have the responsibility to ensure that the projects and activities are carried out in accordance with ICC requirements. To ensure coordination within ICC, the Banking Commission will remain a focal point on financial crime risk and policy. If needed, members will be added to the Group to provide business inputs from
other ICC Commissions. The Chair of the Financial Crime Risk and Policy Group, in conjunction with the ICC Secretariat, will be responsible for nominating members on the group.

The following selection criteria will be applied
to nominate members:

  1. Strong expertise in the areas covered by the group
  2. Good knowledge of global policy processes and organizations, e.g. FATF, BCBS
  3. Availability to actively participate in the activities of the group
  4. Institutional support granted to each candidate by his/her institution to participate in all group activities (conference calls, meetings, etc.)
  5. Ability to mobilize support within the industry, command respect and communicate outcome of the projects to targeted audiences

Key Interactions

Our engagement will be at the global level on a priority basis. It will be of the utmost importance that the ICC Banking Commission provides support to help coordination on global matters related to financial crime risks. The ICC Banking Commission Financial Crime Risk and Policy Group will also be the main focal point to the following institutions on financial crime matters:

  • WTO Group of Experts
  • B20-G20
  • FATF
  • BCBS
  • The Wolfsberg Group
  • Other regional and national regulators and policy makers (UNODC, UNCTED, EU, World Bank, IMF…)

The Financial Crime Risk & Policy Group will also engage with other finance industry groups as needed.

Upcoming Projects 2014-2015

  • Empirical information on de-risking: ICC will seek to collect fact-based evidence in terms of trade foregone, lost correspondent banking relations and countries the most severely targeted or exit relationships. Terms of reference will be drafted shortly and a first draft will be ready for presentation to the ICC Banking Commission at its meeting in Istanbul this November. This ICC de-risking study was also endorsed by the WTO Group of Experts on 25 April 2014. ICC intends to present key findings to regulators and policy makers in Fall 2014, including the FATF.
  • Update of the Wolfsberg Trade Finance Principles Paper (2011): The ICC will update and reissue the Wolfsberg trade finance principles paper with additions from the correspondent bank principles paper. The idea is to update the current paper to make the principles more accessible to smaller banks. A group will be put together from within the Financial Crime Risk and Policy Group membership and will start work in July 2014.
  • B20 Policy Consultation to draft positions and recommendations on financial crime risk: The ICC Banking Commission will continue to host B20 Policy Consultations on Financial Crime Risk.
  • The first Policy Consultation was held in Dubai during the April 2014 Banking Commission biannual meeting in Dubai and will be followed by a second in Istanbul this November with the objective to prepare policy positions and recommendations for the 2015 B20 process.
  • FATF Private Sector Consultations: ICC will continue to participate in FATF consultations and attend related meetings. Specific business positions and recommendations may be developed by the Financial Crime Risk and Policy Group, as needed.

In addition, the ICC will participate in various studies, including the current BBA De-risking Paper. The ICC will also be represented at the Wolfsberg Forums and other leading financing crime risk conferences.