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Financial Crime Compliance Working Group

Purpose

The purpose of the Financial Crime Compliance Working Group (FCC WG) is to foster best practice across a broad spectrum of financial crime-related risks that could arise in the Securities Services industry.

Scope

In August 2015, ISSA released 17 Principles which are recommended to be implemented by the global community of securities custodians and intermediaries in order to address the critical challenges posed by financial crime, particularly where omnibus and commingled account structures are used. The WG’s scope includes reviewing these principles, and related Due Diligence Questionnaire, on an ongoing basis.

In scope topics currently under consideration include:

AML Typologies

▪ Analysis of different Anti Money Laundering techniques used in Securities Services

▪ From the analysis, create AML scenarios

New Technologies

▪ Outline the risk dimensions for different technologies

▪ Cover crypto currencies and digital assets

Russian Sanctions Forum

▪ Create a group to pool and share information on Russian sanctions, interpretation and necessary actions required

SWIFT Standards

▪ Assess current SWIFT messages and, where required, define compliance standards for incorporation into appropriate messages

Tax Compliance

▪ Share – internally only – perspectives on taxation in different parts of the securities value chain (settlements, income, corporate actions, securities finance, securities issuance)

▪ Consider if appropriate to set a standard of reasonable expectations of control and oversight of tax compliance for the Securities Services industry.

Key Deliverables

Pending introductory meeting in June

Key Outcomes

Pending introductory meeting in June

Bulletins.

Reports

Principles and Related Documents

ISSA Financial Crime Compliance – Revised Questionnaire (ISSA DDQ) version 12/2021 > DOC 3 MB
ISSA Financial Crime Compliance Principles for Securities Custody and Settlement, second revision 05/2019
> PDF 326 kB
ISSA Financial Crime Compliance – Questionnaire (ISSA DDQ), simplified version 05/2019
> DOC 300 kB
Examples of Draft Contractual Terms to Support the Implementation of the Principles 05/2019
> PDF 211 kB
Background & Overview on the Financial Crime Compliance Principles 05/2019
> PDF 574 kB
Discussion paper on Transparency in Securities Transaction and Custody Chains, issued on 22 April 2014, as pre-reading documentation for the ISSA Symposium 17.
> PDF 360 kB

Additional Documents

ISSA Comments to BIS’s consultative document of October 21, 2015
> PDF 414 kB
ISSA commissioned Study on the Benefits and Costs of Securities Accounting Systems, August 20, 2015
> PDF 950 kB