Monthly Update
October 5, 2017
FSVC Hosts Panel Discussion on
Financial Sanctions and De-Risking

On September 26, FSVC, with the support of Carnegie Corporation of New York, hosted a panel discussion and reception for nearly 200 guests at the Yale Club of New York City. The panel convened top experts from the U.S. and abroad to discuss the intended and unintended consequences of financial sanctions and "de-risking".

The panelists, representing a diverse set of viewpoints, included Adam Szubin, former Acting Under Secretary for Terrorism and Financial Intelligence, U.S. Department of the Treasury; Ivan Timofeev, Director of Programs, Russian International Affairs Council in Moscow; John B. Reynolds, III, Partner in Davis Polk’s Financial Institutions Group and economic sanctions and national security practice; Rob Mosbacher, Jr., former President & CEO of the U.S. Overseas Private Investment Corporation (OPIC); and J. Andrew Spindler, President & CEO of FSVC. Tom Easton, American Finance Editor for The Economist, served as moderator.  
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The lively discussion addressed when financial sanctions were most/least effective, and their impact on targeted countries. Panelists also debated whether other emerging market countries may be hesitant to integrate into the international financial system, knowing that they could be penalized via sanctions in the future.

Another major topic of discussion pertained to the withdrawal of financial institutions from correspondent banking relationships in developing economies due to the fear of money laundering and terrorist finance risks and regulatory penalties. Many banks seem to have determined that the cost and risk of these banking relationships are too high. The unintended result of strong anti-money laundering and combating the financing of terrorism (AML/CFT) regulations is that many developing economies are at risk of being cut off from the global financial system.

Panelists acknowledged the need for strong regulatory frameworks, and agreed that capacity building at local institutions is needed to preserve international banking relationships. Technical assistance programs, like those provided by FSVC, can play a critical role in helping developing economies strengthen their AML/CFT frameworks in order to maintain or re-establish their links to the international financial system.
FSVC Congratulates Randy Quarles on Nomination to Federal Reserve System
FSVC Board Member Randal K. Quarles was confirmed by the U.S. Senate today as Vice Chair for Supervision of the Federal Reserve System. FSVC leadership issued a statement congratulating Mr. Quarles, and thanking him for his tremendous service.
FSVC Awarded Grant to Encourage Effective and Accountable Government Institutions in Tunisia

FSVC was awarded follow-on funding from the Middle East Partnership Initiative (MEPI) at the U.S. Department of St ate to strengthen the effectiveness and accountability of the Government of Tunisia. Building on the previous phase of this successful program in Tunisia , FSVC will continue working with key stakeholders from national government institutions, municipalities and civil society organizations (CSOs) to pursue open government policies.
Somalia: Training Money Transfer Businesses to Fight Money Laundering and Terrorist Finance

As part of its program to strengthen the financial sector in Somalia, FSVC's mentors trained tellers at local money transfer businesses (MTBs) on how to identify and prevent financial crimes. More than 50% of Somalia's economy depends on remittances from abroad, and MTBs are the main conduit for these remittances.

Since MTBs can serve as the front line of defense against money laundering and terrorist financing in Somalia, it is critical that they be aware of red flags associated with criminal financial behavior.

Working with the Central Bank of Somalia (CBS), wh ich is responsible for the oversight of MTBs, FSVC's mentors trained MTB tellers on Know-Your-Customer (KYC) procedures, screening clients against international sanctions lists, monitoring transactions and reporting suspicious behavior. This training helped strengthen the capacity of MTBs to effectively identify and report unusual activity, and encouraged greater coordination with the CBS.
Russia: Adopting a Commercial Banking
E-Commerce Platform

Since 2010, FSVC has worked with the Peters burg Social Commercial Bank (PSCB) in Russia to strengthen its technical capacity in several key functional areas, particularly in small and medium-sized enterprise (SME) lending operations. PSCB currently is exploring the adoption of e-commerce products and services for its SME and business clients.

An e-commerce platform would enable PSCB's business clients to sell products and services online, and receive cashless payments. The platform would facilitate the flow of business transactions and attract new customers to the bank.

To help PSCB achieve this objective, FSVC hosted 5 members from the bank's products department for a study tour with cashless payments providers in New York and Boston. The delegation met with representatives from PayPal, Braintree, PayGility, Transpay and BlueSnap, among other institutions, to discuss the various options available to them, and assess the viability of such technology in the Russian market.
About Us
The Financial Services Volunteer Corps (FSVC) is a not-for-profit organization that helps strengthen financial sectors in developing and emerging market countries. It does so with the ultimate aim of promoting job creation, economic growth and a better quality of life. FSVC structures practical, results-oriented technical assistance and training missions staffed by senior financial sector professionals who serve as unpaid volunteer experts. Over the past 27 years, more than 9,500 volunteer experts from the international financial, legal and regulatory communities have taken part in 3,000 missions, impacting millions of people in 65 countries.