Responses to Financial Crime - AML & KYC

Professional and Industry Experience

• Joined a banking think tank in 2003 and provided the following services:
  • Built a scoring model related to financing examination for firms and initial examination for credit cards
  • Supported compliance to Basel II (Rating system (including model), verifying and building retail pool classification, estimating and verifying parameter) 
  • Supported building revenue management system for mortgage (simulating mortgage lifetime revenue)
  • Supported national and international financial institutions on their credibility assessment (verifying and building rating system for financial institutions)
  • Supported building and verification of project rating system to transfer to FIRB
  • Simulated income and expenditure fund for ALM management system enhancement
• Joined KPMG AZSA LLC in 2016

Experience at KPMG

• Provided the following services to major national financial institutions (including government-affiliated financial institutions):
  • Verified Basel III AIRB parameter estimated value
  • Verified and enhanced stress testing model (including rebuilt) and supported documentation
  • Developed expected credit loss model for CECL compliance
  • Prepared data infrastructure for responsive risk management system
  • Supported enhancement of analytical system utilizing opensource (Python)
• Provided the following services to regional financial institutions:
  • Supported verification of rating system to transfer to AIRB and estimation of parameter
  • Supported transformation to FIRB (verifying rating system, verifying retail pool management system etc.)
  • Supported enhancement of integrated risk management system (economic capital management system)

Skills

• SAS, Python, Excel VBA programming skills
• Presented at multiple seminars for financial institutions

Lee joined HSBC in the UK in 1997 and has since held a number of IT roles in the UK, Brazil, India and Hong Kong. Lee has been based in Hong Kong since June 2010 where he has held senior roles across Finance and Risk technology teams. Lee was responsible for deploying and upgrading the compliance systems that helped HSBC successfully meet its Deferred Prosecution Agreement commitments in Asia Pacific as the Regional Head of Compliance IT, and he then picked up additional responsibility as the Global Head of AML Technology for HSBC Group in January 2018. This role includes overall responsibility for HSBC’s transaction monitoring systems and strategy across the group and has involved a significant amount of engagement with the FCA in the UK and the Skilled Person team assigned to HSBC. 

Background

Shuichiro joined KPMG in 2019 after his career at a leading Japanese megabank and security firm where he was mainly in charge of maintaining soundness of the entity’s AML/CFT framework.

Shuichiro has numerous experiences in leading the group-wide AML/CFT framework at the bank, including validation and testing of its effectiveness, integration/ implementation of RegTech, and establishment of better governance for overseas offices.

Professional and Industry Experience

• Shuichiro has more than 10 years of experience to manage the AML/CFT framework at Japanese megabank, and has proactively been involved to enhance the AML/CFT control at Japanese bank’s industry as a whole. Until recently, Shuichiro was leading remediation project for FATF Mutual Evaluation at the bank and security firm.

• His numerous and credible experience against financial crime includes;

  • Plan and implement various AML related systems at the bank, including Japan’s first transaction monitoring system, as well as creating and running a framework for its periodic review and enhancement of system settings

  • Run various remediation/ enhancement project for many regulatory environment changes such as the amendments to APTCP, publication of JFSA Guideline, and new developments to international guidelines (FATF, BCBS)

  • Establish better management framework for overseas offices by implementing group-wide standardized rule, periodic monitoring of compliance status and better reporting structure, etc.

  • Promote and integrate the use of RegTech in AML/CFT operations

• Shuichiro has been invited at numerous seminars and conferences related to financial crime as a speaker and panelist.

Areas of expertise:

• Internet Business
• Financial Regulations including AML
• Cross border Transactions Involving Japan 

History:
Graduate of Tokyo University.  Engaged in finance related cases at Nagashima, Ohno and Tsunematsu Law Office.  Seconded to the government (Ministry of Economy, Trade and Industry) for nearly three years, and engaged in (i) the supervision of credit card and finance lease industry, (ii) amendment of the Credit Card Act (formally the “Installment Sales Act”) and Act on Specified Transaction Act (which regulates internet sales transaction and door to door sales and such) and (iii) dealt with FATF investigation into Japan for the credit card and financial lease area.  Then, seconded and worked at Yahoo Japan Corporation and engaged in finance and advertisement/data business related area.  Thereafter, established Nakasaki Lawfirm, which was later renamed Nakasaki & Sato Law Firm.

Books

• “Money Laundering Prevention Act and Foreign Exchange and Foreign Trade Act” (Chuo-Keizai Sha Holding Inc.,2019 [4th edition])
• “International Comparative Legal Guide -Anti Money Laundering 2019”(Global Legal Group, 2019), Co-Author [wrote the Japanese Law part, Also wrote the 2018 edition]
• “Data Strategies and Laws” (Nikkei Business Publications, Inc., 2018 editon, co-authored )
• Detailed Explanation of the Revised Installment Sales Act (Kinzai Institute for Financial Affairs, Inc., 2010)

Ritankar Sahu is the General Counsel & Head of Compliance at MAXpower Corporation, Asia's leading gas to power specialist and a key developer, owner and operator of small to medium gas-fired power plants. In addition to providing strategic business governance counsel to the Board, Ritankar focuses his practice on energy projects development, turnaround management, FCPA enforcement and special situations M&A. Prior to joining MAXpower, Ritankar was the Regional Corporate Counsel for Jacobs Engineering Group’s Asia operations, based in Singapore and Mumbai. He has also worked for Norton Rose (now Norton Rose Fulbright), at the firm’s London and Abu Dhabi offices with a practice focus on projects and project finance.

Background

Chiharu joined KPMG in 2006 after his time at a Japanese major bank where he engaged in risk management operation and project planning and supervision, followed by his experience at IT consulting firm.

He specializes in delivering regulatory compliance advisory service to financial institutions.

Especially, he has numerous experience in providing advisory services on financial crime related support such as AML and counter terrorism. The list of his clients includes regulators and vendors, as well as financial institutions.

Professional and Industry Experience

• Chiharu leads RegTech advisory service within KPMG Japan.

• Chiharu has provided numerous advisory services on AML compliance, his credential includes:

  • Provide support for enhancement of the bank’s entire AML programme of Japanese mega banks such as developing ML/TF risk assessment model, designing KYC process and conducting impact analysis, validating effectiveness of transaction monitoring framework, reviewing data governance framework etc.

• Deliver numerous AML trainings to senior executives, compliance officers and internal auditors of Japanese banks and bankers associations

• Chiharu has also extensive involvement in the other regulatory compliance and forensic services such as:

  • Developing regulatory compliance framework for a newly established Japanese bank

  • Developing complaint handling framework

  • Assisting the establishment of the corrective action plan by a large securities company in Japan for the prevention of information security fraud