Exiger’s Financial Crime Compliance (FCC) Advisory professionals have decades of experience managing financial crime compliance risks for firms representing every angle of the securities industry, including global investment banks, private banking, retail, prime brokerage and clearing platforms. Exiger’s FCC professionals have particular industry expertise assisting securities businesses in market segments including: investment banking, sales and trading, registered investment advisors (hedge funds and private equity funds), private banking, retail, prime brokerage and correspondent clearing. We provide securities industry participants with a broad range of financial crime products and services, including FCC program review and design offerings tailored to a client’s specific business environment, regulatory requirements and expectations, and risk exposure. Our firm and its services are listed in FINRA’s Compliance Vendor Directory.
Impact of Regulatory Requirements - Customer Due Diligence Rule
In response to growing concern over the vulnerability of the U.S. financial system to money launderers, in May 2016 FinCEN issued a new Customer Due Diligence (CDD) rule, which financial iinstitutions must implement and comply with by May 18, 2018.
The rule requires certain financial institutions to develop a robust CDD program. The CDD program consists of the following:
- Identification and verification of the identity of customer
- Identification and verification of the beneficial owners of entity-level customers
- Understanding the nature and purpose of the customer relationship
- Ongoing monitoring to maintain and update customer information and to identify and report suspicious activity
Our accomplished team of professionals includes former heads of Financial Crime Compliance at global financial institutions, former enforcement attorneys and examiners for the NYSE and NASD (now FINRA), Financial Crime Compliance auditors, country heads of Financial Intelligence Units, FBI agents, forensic accountants, Manhattan Assistant District Attorneys, and Assistant United States Attorneys, bringing together a powerful combination of BSA/AML and sanctions compliance experience. This wide-ranging expertise informs our understanding and approach to building and implementing BSA/AML and sanctions compliance programs, thus helping our clients mitigate enforcement and reputational risks. Leveraging our unique industry and regulatory expertise, we serve clients of various sizes and business models.
How Exiger Can Help
- FCC Program Review - Our team conducts reviews of broker-dealer’s and RIA’s FCC program—including policies, procedures, and governance structure—to ensure it fulfills the strict regulatory requirements. If any deficiencies are found, we aid in developing short- and long-term risk-based solutions to ensure that such issues are resolved. If the broker-dealers or RIA lacks an existing FCC program, our team will work with the client to create policies, procedures, internal controls, and a governance structure tailored to address the specific risks identified in the risk assessment. These services can also be tailored to the components of a FCC program, including the new CDD rule.
- Risk Assessment - We will partner with our clients to assess their specific FCC risks and control framework in the context of their business strategy, product offerings, customer and fund investor base, and geographic risk, developing a strategic action plan tailored to each client’s risk appetite. The risk assessment allows Exiger to “right-size” its clients’ FCC framework.
- Remediations - Should a gap in a broker-dealer’s or RIA’s AML framework be identified from a know your customer (KYC), CDD, or transaction monitoring perspective, Exiger will leverage our unmatched due diligence and investigative experience to assist in the remediation process, ensuring that our clients remediate any issue in a robust, efficient, and sustainable manner.
- Audit and Assurance Expertise - Our FCC audit and assurance experts provide tailored audit and assurance services to support client teams in the business, compliance, and internal audit. Whether a client seeks to conduct an annual independent AML audit, respond to regulatory orders, proactively benchmark internal processes, or reinforce its regular activities through co-sourcing, our experts are invaluable. Our experts not only understand and effectively identify material risk exposures associated with the design and performance of central FCC activities, but also offer pragmatic solutions to achieve sustainable development.
- Training - Exiger develops bespoke training for broker-dealers, RIAs and hedge funds, specifically targeting key risk areas identified through the risk assessment. We deliver training to all compliance-related staff as well as to board and C-suite executives, as needed. Beyond enabling our clients to appropriately consider AML risks, this training carries additional, vital significance—after all, instilling a “culture of compliance” in corporations and other private sector institutions has become a central focus of financial regulators and the Department of Justice.