Do You Know Your Customer?

Do You Know Your Customer?

2017 Asset Management & Operations Servicer Workshop

Presenters

AMO Workshop ? Know Your Customer

Mike Kenney

Senior Director Governance & Business Services

Linda Salley

AML, OFAC & Fraud Director Governance & Business Services

Michelle Orsi

Asset Management Director Surveillance

? Freddie Mac

2

Key Takeaways

By the end of today's session we will discuss the following

Why KYC is a hot industry topic Freddie Mac's KYC/AML program Suspicious activity and money laundering MF fraud schemes/red flags Reporting suspicious activity Best practices for Know Your Customer

AMO Workshop ? Know Your Customer

? Freddie Mac

3

Anti-Money Laundering (AML) Overview

Know Your Customer (KYC) is a key component of AML programs

The G-7 Summit in 1989 created the Financial Action Task Force (FATF) to establish an international response to money laundering

The focus on money laundering increased significantly as a result of the tragic events of September 11, 2001

? USA PATRIOT ACT was passed a month later

The Financial Crimes Enforcement Network (FinCEN) is serious about AML Compliance

? Most Financial Institutions are required to have an AML program ? The United Nations estimates that 5% of global gross domestic product is

criminally laundered1

Money Laundering is a global problem

1 Money Laundering has Wall Street Freaking Out; New York Post 8/16/2016 AMO Workshop ? Know Your Customer

? Freddie Mac

4

AML Program Required

In 2014, FinCEN (division of Treasury) required Freddie Mac, Fannie Mae and the Federal Home Loan banks to:

1. Establish a written

Anti-Money Laundering

Program

2. File Suspicious Activity Reports

Directly with FinCEN

3. Participate in mandatory Information Sharing

with FinCEN

FinCEN has delegated AML program compliance oversight to FHFA

? FHFA audits Freddie Mac's AML program

FHFA also mandates anti-fraud policies (Advisory Bulletin 2015-07). FinCEN, a bureau within the U.S Treasury, has a mission to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis and dissemination of financial intelligence and strategic use of financial authorities.

AMO Workshop ? Know Your Customer

? Freddie Mac

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download