ISSA adopts financial crime compliance principles 04 September 2015Zurich Reporter: Becky Butcher
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The International Securities Services Association’s (ISSA) board has adopted the ISSA financial crime compliance principles, which aim to support the efforts of the global community of securities custodians and intermediaries to address the critical challenges posed by financial crime.
In recent years, financial crime compliance has risen to the top of both regulators’ and banks’ priorities.
Until now, the focus has primarily been on cross-boarder payment processing and trade finance.
ISSA’s principles aim to establish a clear global standard for the opening and maintenance of cross-boarder securities accounts.
The principles provide practical guidance to global custodians, sub-custodians, fund distributors, trustees or depositary banks, brokers, prime brokers and central securities depositories that intermediate cross-boarder securities. They include guidelines on on how to most effectively counter the risks of money laundering, terrorist financing, market abuse, corruption, fraud and the evasion of sanctions.
The global system under which securities are safe kept and settled has proven robust and served as a cornerstone of market stability during the financial crisis, according to the ISSA.
The principles that ISSA has developed seek to preserve the value that the securities services industry generates for investors and the capital markets while protecting it from abuse.
Josef Landolt, CEO of ISSA, commented: “As the only association representing firms active in all aspects of securities services, ISSA has been uniquely placed to translate the demand from senior executives from across the industry for an effective and practical response to the challenges posed by financial crime.”
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