Five key take-aways from our financial crime risk management academy

Photo By: Elizabeth Cadwallader
Standard Chartered and InterAction’s Together Project co-host financial access workshop

In partnership with Standard Chartered Bank, InterAction’s Together Project co-hosted an academy on financial crime risk management on October 10th.  With representatives from U.S. government, regulatory bodies, banks and nonprofits, the academy provided content on the current operating environments for banks and regulators, the relevance of de-risking, and the consequent issues of financial access for nonprofit organizations. The day-long session culminated in a focused discussion identifying solutions for improved bank and nonprofit engagement to facilitate the financing of humanitarian and development work.

From a day of rich and diverse presentations and dialogue, here are five of the key next steps…

1.       Develop outreach opportunities both domestically and internationally

Cultivate effective relationships and convene solution-focused dialogue to facilitate information sharing and promote a deeper understanding of the issues for regulators/government, banks and nonprofits. Critical to this, is the inclusion of law enforcement agencies within the conversation. Through developing a multi-stakeholder dialogue, solutions can be sought to effectively address the issues of financial access for nonprofits.

2.       Make use of educational tools

Provide educational opportunities: both face-to-face and through e-learning, to develop specialist knowledge both within and between sectors. Specifically, this should raise awareness of regulatory requirements; compliance programs; sanctions’ enforcement; nonprofits’ financial access issues and associated mitigation strategies; and clarify understanding of the risk-based approach. 

3.       Develop clear and transparent standard setting

Establish a greater level of transparency within institutions and with regulators in relation to standards’ development and implementation. Greater clarity is needed in the standard setting and dissemination process so all stakeholders have a clear understanding of their roles and responsibilities.

4.       Share best practice

Identify specific examples where risks have been well moderated by nonprofits - both banks and nonprofits can share this information to further inform effective practice. Banks could further contribute to this guidance by providing key documents submitted from nonprofits who have shown appropriate due diligence in their transactions.

5.       Let everyone wear the “white hat”

As Manager of the InterAction’s Together Project, Princess Bazley-Bethea, stated in her closing remarks, it was great to see all the academy’s participants having the chance to wear the “white hat” – regulators, government, banks and nonprofits working collaboratively to create a positive force and identify solutions:  near-term solutions that work for all and ensure financial channels for vital humanitarian and development assistance overseas.