Financial Institutions Must Upskill To Stay Ahead Of Emerging Threats – AICB

By Karina Imran

KUALA LUMPUR, Aug 23 (Bernama) -- Financial professionals must stay ahead of emerging threats by upskilling themselves and being aware of the latest developments in financial crimes, as artificial intelligence (AI) continues to reshape the risk landscape, according to the Asian Institute of Chartered Bankers (AICB).

The institute is taking proactive measures to ensure that its members to navigate evolving challenges in financial compliance, with a strong emphasis on Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and Counter-Proliferation Financing. 

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Chief executive Edward Ling said that as a key provider of professional banking education and talent development, AICB is dedicated to raising competency standards in the banking industry. 

“We play a crucial role in enhancing the ability of the banking workforce to detect and prevent fraud, money laundering, and terrorism financing through enhanced training and capability development.

“It is crucial to equip financial professionals with the practical knowledge and future skills to maintain the sector’s integrity and support its zero-tolerance approach to financial crimes,” he said to Bernama at the sidelines of the International Conference on Financial Crime and Terrorism Financing Masterclass 2024.

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One of AICB’s initiatives to equip its members with the necessary skills and knowledge is the recently launched Future Skills Framework for Malaysia's financial sector.

The institute also organises a range of conferences, technical sessions, and certifications, including its flagship Chartered Banker programme, which includes several modules specifically designed to address AML and CTF.

These include the Certificate in Anti-Money Laundering and Counter Financing of Terrorism; Certificate in Regulatory Compliance; Anti-Money Laundering and Counter Financing of Terrorism Practices; Regulatory Compliance Practices; Bank Risk Practices; and Bank Risk Management. 

AICB also offers Professional Qualifications in AML/CFT, namely the Certification in Anti-Money Laundering and Counter Financing in Terrorism and the Advanced Certification in Anti-Money Laundering/ Counter Financing in Terrorism.

It also offers Professional Qualifications in Regulatory Compliance (RC) to equip banking professionals with skills in regulatory compliance and risk.

“As certified RC professionals, bankers will be able to advance their careers and assume key positions in regulatory compliance and risk,” he said. 

To ensure AICB’s training and certifications align with international standards while remaining relevant to the local context in Malaysia, AICB collaborates closely with industry players, partners, regulatory authorities, and global education and training bodies to ensure its educational offerings meet the highest standards and industry demands. 

Proliferation Financing a Threat to Financial Institutions

According to a visiting professor at King’s College London, Dr Jonathan Brewer, proliferation financing -the act of providing funds or services to support the development of nuclear, chemical, or biological weapons - is fast becoming a significant concern in the fight against financial crime.

He encouraged financial institutions to stay ahead of proliferation financing threats and challenges through rigorous risk assessments, leveraging technology and enhancing international cooperation to maintain its integrity and security.

He noted that the Financial Action Task Force (FATF) - an influential financial watchdog - has mandated that all states and financial institutions conduct risk assessments targeting proliferation financing.

“In terms of international cooperation, the FATF sets out very important standards for all countries. Meanwhile, for individual countries, the regulatory bodies have to make sure that they are complying with the standards. 

“International cooperation is important in terms of investigating violations. Take sanctions, for example. It is very important to have good, effective regional and international channels in place to share information related to sanctions violations,” he said. 

Brewer also stressed the importance of rigorous due diligence in detecting potential proliferation financing threats.

He said AI could be used to analyse customer behaviours indicative of such activities, however, the AI tools must be specifically tailored to address proliferation financing.

Brewer added that many proliferation financing cases involve small trading companies, underscoring the need for heightened scrutiny in this area.

-- BERNAMA