FERG Chairman backs collaboration and due diligence in anti-money laundering initiatives at ACAMS Conference

Calls for a risk-based approach for a robust remittance industry that empowers people globally

Dubai, February 11th, 2015 - The Chairman of the Foreign Exchange and Remittance Group (FERG) Osama Al Rahma highlighted the importance of anti-money laundering measures in creating a robust remittance economy and financial sector in the UAE at a presentation delivered at the ACAMS Conference, an event supported by FERG.

The two-day ACAMS Conference that was held at the Jumeirah Emirates Towers, gathered anti-money laundering and financial crime prevention together with regulators and government experts in a knowledge-packed discourse on global best practices against financial crime.

“In 2014, the global remittance industry saw approximately USD 582 billion transferred, representing a 5 percent growth from the year previous. At the same time, regulatory fines, settlements and penalties for the year totalled USD 57 billion. It is essential in creating a transparent financial system and empowering people with limited access to banks. That’s why we advocate a risk-based approach that takes into account inherent challenges,” Al Rahma said during his presentation.

FERG comprises businesses engaged in money exchange and remittance businesses, with some 974 plus represented branches across the UAE. The Group affirmed its support of ACAMS by coming on board as a supporting sponsor.

“The ACAMS Conference is a valuable forum for the exchange of risk management strategies, AML best practices and countering illicit finance. The idea we promulgate is that one size doesn’t fit all – not all transactions carry the same amount of risk. And while banks are wary of the sector due to fear of regulations, abandoning it will strengthen the grey market. The order of the day is to collaborate, work with all stakeholders, conduct due diligence on transactions, and maintain duly parsed customer data. The ACAMS Conference’s main objective is in line with FERG’s vision of building a secure and innovative remittance sector,” Al Rahma added.

Topics under the spotlight at the ACAMS Conference included new criminal schemes, and expectations for regional regulations. The new round of FATF mutual evaluations and potential effect in local regulation drew discussion. Terror finance typologies and risk assessment methodologies were also on the agenda.

The ACAMS schedule also made room for an interactive workshop on sanctions and enforcement actions, and a hands-on breakout session on risk assessment.

ACAMS is the largest international membership organization dedicated to enhancing the knowledge, skills and expertise of anti money laundering (AML), counter terrorist financing (CTF) and financial crime detection and prevention professionals. Members include representatives from a wide range of financial institutions, regulatory bodies, law enforcement agencies and industry sectors.

FERG, formed as per the initiative of the Central Bank of the UAE, establishes a common platform to help regulate the UAE’s USD 30 billion exchange and remittance industry, pushing for AML compliance and serving as a conduit for transmitting member concerns to regulators and the Central Bank.

“Remittances increase human capital stock, and facilitate productivity. These drivers in turn contribute to investments in education, food security, women’s economic empowerment, and entrepreneurship. That’s why FERG calls for across the board collaboration with stakeholders to unify AML/CTF definitions, and standardises terminologies and processes,” Al Rahma concluded.