Session 2 Flashcards
(22 cards)
What does AFA stand for?
Agence Française Anticorruption
What does the SAPIN II (the French anti-corruption law) states?
French companies, and global corporations operating in France.
=> To take measures to prevent and detect acts of corruption or influence peddling,
to meet the expectations of the AFA.
What are the three pillars AFA promotes to stop corruption?
Pillar 1 => Senior management’s commitment to corruption-free performance
Pillar II => Risk mapping to raise awareness of the entity’s exposure to corruption risks
Pillar III => Corruption risk management measures and procedures
Explain in detail the first pillar of AFA’s anti-corruption
The first pillar involves the senior management being on board with the ethical reforms.
If they are not invested, the funding to stop unethical behaviours will never come.
Explain in detail the Second pillar of AFA’s anti-corruption
The second pillar includes risk mapping, assessment and identification of possible exposure to corruption.
Knowing your weak points better will help preventing future unethical behaviours.
Corruptions scandals will kill your reputation, and your reputation is ALL.
Explain in detail the Third pillar of AFA’s anti-corruption
The third pillar is all about fighting corruption.
This includes measures against corruption through:
Prevention
Detection
Corrective action
Explain how to conduct preventive measures to fight corruption to comply with the third pillar.
- Culture of Ethics
- Training People (AMF certificate)
- Having Codes of Conduct.
- Third-party due diligence
Explain how to conduct Detection measures to fight corruption to comply with the third pillar.
- Anticipation of risk
- Making people not afraid of being whistle blowers
- Internal control (three lines of defence model)
Explain how to conduct corrective action measures to fight corruption to comply with the third pillar.
- Corrective measures (sanctions)
- Disciplinary rules
What is money laundering?
Making money that has dubious precedence (illegal activities) undergoes a financial scheme that “legitimizes” its origin.
What is terrorist financing
Involves the solicitation collection or provision of funds with the intention to be used in support of terrorist acts and organizations.
Money can come from both legal and illegal money.
What does the FATF do?
Its the global watchdog regarding terrorist financing & money laundering
What does FATF stand for?
FINANCIAL ACTION TASK FORCE
(Fat-fuck)
How does the FATF prevents terrorist financing & money laundering?
Setting standards
Assessing implementations
Identifying high-risk jurisdictions
Explain in what Setting standards helps the FATF to achieve their goal?
The FATF recommendations ensure a co-ordinated global response to prevent organized crime, corruption and terrorism
If the response is coordinated, then it can be effective at stopping the crimes.
Explain how Assessment of implementation helps the FATF to achieve their goal?
They evaluate countries using their standards alongside the help of 9 other partners (like the IMF or the world bank)
The partners have power over developing countries as they need founding so they will listen to them
Explain how identifying high-risk jurisdictions helps the FATF to achieve their goal?
The FATF holds countries to account that do not comply with Standards.
If a country repeatedly fails to implement FATF standards then it can be named a Jurisdiction under Increased Monitoring or a High-Risk Jurisdiction ⇒ “the grey and black-lists”.
What measures does the European union anti-Money Laundering directive set out?
*Make legal entities and legal structures more transparent by extending access to beneficial owner registers
*Harmonise the enhanced due diligence measures to be implemented for business relationships or transactions that involve high-risk third countries
*Specify the measures to be implemented in the event of a creation of a remote business relationship
*Provide for certain virtual asset service providers to be regulated under the AML-CTF rules.
What is the goal of the European anti-laundering directive?
Combat terrorist financing more effectively + guarantee more transparency in financial transactions
How does the application of the FATF work?
EBA sets guidelines
Obliged Entities conduct customer due diligence and suspicious transaction reporting under the AML’s watch. They also decide on high risk countries
What is a code of ethics?
description of how to align internal conduct with the values of the company and external regulation or/and expectations.
What does Mark Carney say about regulation?
Approach based only on regulation and sanctions is insufficient, regulation should align compensation with values, increase senior management accountability, renew a sense of vocation in finance
