Efficient Regulatory Compliance for Financial Institutions

Improving efficiency in compliance controls is vital for financial institutions to streamline processes, enhance risk management, and meet regulatory requirements more effectively.

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Crypto and bankers

“Crypto” and Bankers: A Revolution Underway, Regulation Is Here

In an increasingly digital world, the banking sector faces a crucial question: how to adapt to the growing influence of crypto-assets and natively digital representation of value? In recent years, cryptocurrencies, public ledgers, and tokenized assets have emerged as major innovations, redefining the boundaries of the financial systems. Their increasing adoption in the creator economy, everyday […]
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Combatting Financial Crime: Introducing the “AML Package”

Money laundering and terrorism financing have been top priorities on the political agenda of the EU’s for several years now. As these activities not only cause immense damage to the economy and financial systems, but also pose significant threats to the safety of citizens.  To address these issues, the European Commission introduced a package in […]
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MiCA: Unveiling Europe’s Crypto-Asset Regulation

Markets in Crypto-Assets (MiCA) is a new European legislation designed to regulate the crypto asset market. The purpose? To protect investors, stimulate innovation and guarantee the security of the financial system. The legislation is implemented in all member countries of the European Union.  Shaping the EU’s Crypto-Financial Landscape  The upcoming MiCA regulation promises a significant […]
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Streamlining Compliance Workflows

Continuous process reviews are implemented to promptly identify and address potential compliance issues. This approach helps identify inefficiencies and bottlenecks in the compliance workflow. Organizations can streamline compliance workflows by eliminating unnecessary steps and optimizing the sequence of tasks.

Leveraging Regulatory Technology

Many banks leverage technology and automation to enhance compliance efforts, improving the efficiency of AML and KYC processes and better identifying suspicious activities. Automation reduces manual errors, allowing staff to focus on more complex compliance issues. Implementing advanced technologies, such as artificial intelligence and machine learning, aids in analyzing large volumes of data to detect patterns indicative of money laundering or other illicit activities.

Achieving Compliance Efficiency

Our consultants, with specialized knowledge, bring a deep understanding of regulatory requirements, industry best practices, and the unique challenges faced by financial institutions. This domain expertise allows them to develop customized compliance solutions tailored to specific needs and operations. They conduct in-depth process reviews, identify optimization opportunities, and recommend changes aligning with regulatory requirements and operational realities. Their knowledge supports the selection, implementation, and calibration of new technologies, ensuring that compliance controls are effective, practical, and sustainable.

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Monica Bernal

Senior Manager

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Use cases

Pave the way of Financial Security

The National Regulator performed an audit of the bank’s ability to prevent and detect suspicious activity in clients’ financial transactions.
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DynaFin's Expertise in Regulatory continuous improvement

USE CASE
Pave the way of Financial Security

Context

The National Regulator performed an audit of the bank’s ability to prevent and detect suspicious activity in clients’ financial transactions. Identified breaches led to recommendations focusing on improving Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, enhancing global governance in detecting suspicious activities, and reviewing past activities. Upon agreement with the regulator, the bank delineated specific actions to address each recommendation and enlisted DynaFin of a consulting firm to aid in the deployment and governance of these actions.

DynaFin's Strategic Intervention

DynaFin played a crucial role in facilitating the deployment of the action plan, providing comprehensive support across various levels of the program:

Global Coordination of the Program

Our consultants assumed responsibility for overseeing the overall coordination of the program, ensuring alignment between different stakeholders involved in the remediation efforts.

Elaboration of Action Notes for the Authorities

DynaFin’s experts collaborated with the bank's internal teams to draft detailed action notes outlining the remediation measures implemented in response to the audit findings. These action notes served as formal documentation addressing regulatory concerns and were presented to the relevant authorities for review and approval.

Governance of Streams

Our consultants took charge of governance of different streams, ensuring that actions were effectively delineated and executed within their respective scopes. Consultants meticulously elaborated on the remediation actions within each stream, documented them comprehensively, and closely monitored the deployment process.

Implement sustainable solutions

Consultants actively participated in project squads dedicated to deploying structural solutions aimed at addressing the actions identified by the program. These project squads leveraged their expertise and resources to implement sustainable solutions tailored to the specific requirements outlined in the action plan, thereby driving tangible progress towards achieving compliance and regulatory adherence.

Files analysis

In the operational departments within the bank, consultants participated in Know Your Customer (KYC) and Anti-Money Laundering (AML) analysis of past files. This involved conducting thorough reviews of historical data, identifying any deficiencies or anomalies, and documenting them.

Outcome

With the assistance of DynaFin, the bank effectively addressed and resolved the audit findings, demonstrating a proactive commitment to cultivating a culture of regulatory compliance. Through collaborative efforts, the bank not only remediated existing issues but also laid the groundwork for sustained regulatory framework in the future. Structural solutions were successfully implemented, highlighting the bank's dedication to upholding the highest standards of compliance and governance, ensuring a robust and resilient foundation for long-term financial security.

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Assistance in QI periodical Review

A large Belgian bank required to periodically review his withholding agent activities under its QI agreement has launched a project for the preparation of its QI periodic review.
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DynaFin's Expertise in Regulatory continuous improvement

USE CASE
Assistance in QI periodical Review

Context

The Qualified Intermediary (QI) regime is US Tax regulation where a QI, any foreign intermediary enters into a qualified intermediary agreement with the US Tax authorities (Internal Revenue Service).  

 

This QI agreement allows the intermediary to simplify its obligations as withholding agent on U.S. source income (interest, dividends, and other fixed or determinable annual or periodical “FDAP”). 

 

In this context, a large Belgian bank required to periodically review his withholding agent activities under its QI agreement has launched a project for the preparation of its QI periodic review.  

DynaFin's Strategic Intervention

DynaFin Experts have assisted the Bank on the different QI obligations in view of their QI Periodic Review. 

Design of procedures

DynaFin experts have drawn and formalized the end-to-end QI procedures of the Bank that describe the controls, the documentation and reporting of QI customers population.

Documentation review

A team of KYC experts have audited and remediated all the customer files (private individuals and legal entities) to ensure that customers are effectively entitled to the double taxation withholding tax rate.

US withholding tax

A review of applied US withholding tax rates to Fixed, Determinable, Annual, Periodical (FDAP) incomes have been performed according to the documentation provided by the customers.

Reporting

A team of reconciliation experts have prepared the yearly and periodical reporting has been prepared and provided them to the Internal Revenue Services (i.a. 1099 and 1042).

Outcome

With the assistance of DynaFin, the Bank was prepared to succeed in its QI periodic control to confirm the respect of the obligations provided by the QI agreement. 

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Enhanced Regulatory processes for FATCA/CRS

Financial Institutions outside the US territory is required to perform specific due diligence procedures with a view to identifying US persons (natural and legal) and report them.
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DynaFin's Expertise in Regulatory continuous improvement

USE CASE
Enhanced Regulatory processes for FATCA/CRS

Context

Financial Institutions outside the US territory is required to perform specific due diligence procedures with a view to identifying US persons (natural and legal) and report them. A similar initiative was launched at the international level and has resulted in the Common Reporting Standard (“CRS”) to reduce global tax evasion.

A Belgian insurance company, required to comply with this regulation in all its activities – has launched a regulatory program to align with in force regulations (including FATCA and CRS).

DynaFin's Strategic Intervention

The company has assigned DynaFin and its tax regulations experts to assist in completing the reporting obligations and reviewing their process and improving their controls.

Preparation of the FATCA and the CRS reporting

Our experts have made a detailed reviewed of the customers population (private individuals and legal entities) to be reported under these regulations and implemented the new reporting requirements published by the US Tax authorities (Internal Revenue Service). They have also implemented sanity checks to be yearly performed in the preparation process of these reports.

FATCA internal Audit

DynaFin has tested the effectiveness of the process for identifying consumers who are reportable and for reporting these customers, which resulted in a series of improvement recommendations.

FATCA/CRS remediation

Our team of DynaFin experts started a remediation campaign to contact and obtain valid and updated documentation from the entire impacted customers population.

Process alignment and improvement

We implemented new identification controls in the 1st Line of Defence and a enhanced governance, which led to a secure end-to-end process and compliancy with FATCA and CRS regulations.

Outcome

The insurance company has reviewed its entire FATCA and CRS population and has reinforced its customers database with periodical controls via a strong monitoring of the changes of circumstances with a higher quality of reporting.

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