LEBANON BASIC CIRCULAR NO. 128
A UNIQUE EVENT
BANKING AND FINANCIAL LAWS
AND LEGISLATION FOREIGN AFFILIATES
22ND AND 23RD OCTOBER 2018
Regulatory Compliance Training Course
Article 1 of the Banque du Liban Basic Circular no. 128 (Beirut, January 12, 2013) (the Circular) states that Banks and Financial
Institutions (BFIs) must establish a Compliance Department (CD) comprising of:
(1) a Legal Compliance Unit; and
(2) an Anti-Money Laundering (AML)/ Counter the Financing of Terrorism (CFT) Compliance Unit (AML/CFT Compliance Unit).
Article 3 of the Circular specifies that the Head of the Legal Compliance Unit must have the required competences and hold, at least, a law degree; it must also have the required knowledge and expertise in the field of banking and financial services laws and legislations in force in Lebanon and in any country hosting the affiliates of the bank or financial institution, in addition to the required knowledge in banking and financial activities.
This training course has been specifically designed to provide the required knowledge and expertise relating to countries hosting the affiliates of Lebanese banks or financial institutions located within the European Union (EU).
About The Course
This unique and innovative training course will train attendees in a very broad range of regulatory compliance frameworks that govern Lebanese affiliate BFIs operating in the European Union (EU).
On the first day, the first two sessions will provide extensive coverage of EU AML/CFT operational frameworks as well as key AML/CFT areas, such as risk-based approach to money laundering, undertaking extensive due diligence, and AML/CFT policies, conduct risk, and reputational risk and financial damage. The next two sessions will cover the revised Markets in Financial Instruments Directive (MAD 2) and the Market Abuse Regulation (MAR) regulatory compliance frameworks. They will include a review of a range of new insider dealing and market abuse offences, new criminal sanctions and penalties, as well as market abuse prevention, monitoring, and detection. These sessions will also provide a review of a broad range of insider dealing and market abuse behaviours, as well as a select review of past case studies.
On the second day, sessions 5 and 6 will provide extensive coverage of the new revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). This includes a review of the new market structure in place across the EU, MiFIR trade and transaction reporting, MiFID II suitability and appropriateness requirements, best execution, recording of telecommunications, and the unbundling of research commissions. The last two sessions will provide broad coverage of central counterparty (CCP) operational frameworks that are in place in the EU. This will include a review of the CCP clearing model, CCP operational practices, and CCP cleared products. In addition, the course will cover CCP operational risk and default risks, as well as providing attendees with a comprehensive understanding of recovery and resolution plans.
1 Very extensive training in key regulatory compliance frameworks that are in place across the EU.
2 Highly interactive training sessions with a client review session scheduled at the end of each day.
3 In-depth coverage of key areas across a multitude of different banking and nancial institution regulatory frameworks.
4 Highly comprehensive training manuals and materials containing additional materials which can be used for future reference purposes.
5 Invaluable insights covering legal, operational, technological, and strategic perspectives of key regulatory frameworks.
AML/CFT Operational Frameworks – PART I
· An Overview of the First, Second, Third and EU Money Laundering Directives, and Commission Money Laundering and Terrorist Financing Risk Assessment.
· The Risk-Based Approach (Obliged Entities, Supervisors, AML/CFT Jurisdictions, Prepaid Cards, Mobile Payments, Internet-Based Payment Services) and Risk Factors (Customer; Geographical; Product, Service, Transaction, or Delivery Channel).
· Customer Due Diligence (CDD), Simplified Customer Due Diligence (SCDD), Enhanced Customer Due Diligence (ECDD), Beneficial Owner, and Politically Exposed Persons (PEPs) Obligations.
AML/CFT Operational Frameworks – PART II
· Offences, Penalties, and Pecuniary Sanctions, AML/CFT Gap Analysis, Risk Assessments, Risk Appetite Statements, Simplified Due Diligence, Record Keeping, and Beneficial Ownership Register Obligations, Operational and Risk Policies and Procedures, AML/CFT Monitoring.
· High-Risk Third Countries and Third Party Equivalence, AML/CFT Staff Training, Compliance Manuals, Identified Risk Factors and Warning Signs.
· AML/CFT Policies, Money Laundering, Culture of Compliance, Conduct Risk, Reputational and Financial Damage.
Insider Dealing and Market Abuse Operational Frameworks – PART I
· The MAD 2 and MAR Operational Frameworks, Criminal Sanctions and Penalties, Liability for Natural and Legal Persons, Spot Commodity Contracts, Benchmark Manipulation.
· New Offences, Disclosure of Inside Information, Transactions by Persons Discharging Managerial Responsibilities, Suspicious Transaction Reporting, New Whistleblowing Obligations.
· Suspicious Transaction and Order Reports (STORs), Market Abuse Prevention, Monitoring, Detection, Training, Reporting.
Insider Dealing and Market Abuse Operational Frameworks – PART II
· Accepted Market Practices and Market Soundings, Market Abuse Exemptions, Powers, and Sanctions, Chinese Walls, Supervisory and Investigatory Powers.
· Insider Dealing and Market Manipulation Signals and Examples, Unlawful Disclosure of Information Signals and Examples, Cross- Market Manipulation, Market Abuse Behaviours.
· A Review of a range of Insider Dealing and Market Abuse Case Studies.
MiFID II and MiFIR Operational Frameworks – PART I
· The MiFID II and MiFIR Regulatory Frameworks, Global Impact, Regulatory Powers, Data Reporting Services, Third Country Framework, Market Structure (Organised and Multilateral Trading Facilities and Systemic Internalisers)
· MiFIR Reporting Framework and Reporting Obligations, New Reportable Instruments, Extended Transaction Report Fields, Legal Entity Identifiers (LEIs), Client Identification Standards, Flags.
· MiFID II Suitability and Appropriateness, MiFID II Requirements for Assessing Suitability and Appropriateness, Guidelines, Operational Requirements (Recommendations, Ability to Bear Losses, Multiple Client Entities, Suitability Reports, Recordkeeping).
MiFID II and MiFIR Operational Frameworks – PART II
· MiFID II Best Execution (BE), BE Operational Monitoring Systems, Best Execution Technology Offerings.
· MiFID II and the Recording of Telecommunications, the Top Ten Recording of Communications Strategic Considerations for MiFID II Investment Firms.
· MiFID II and the Unbundling of Research Commissions, Research Payment Accounts, Broker Voting, Commission Sharing Agreements, Research Platform Operational Models and Research Marketplaces.
CENTRAL COUNTERPARTY (CCP) Operational Frameworks – PART I
· The CCP Clearing Model (Functional Definition; CCP Ownership; CCP Advantages and Disadvantages; Novation; Cleared Products; Margining; Multilateral Netting; Risk and Default; Loss Mutualisation; Auctions; Portability).
· ESMA and EU CCP Authorisation, Recognition and Supervision, CCP Operating, Clearing and Reporting obligations under the European Market Infrastructure Regulation (EMIR) Framework.
· CCP Cleared Products, Reporting, Interoperability, Third Country CCPs, Basel III Capital Treatment/ Risk Weightings for Qualifying and Non-Qualifying CCPs.
CENTRAL COUNTERPARTY (CCP) Operational Frameworks – PART II
· Default risks (CCP Member default, Distress, or Resignations; Failed Auctions, Reputational), Non-default loss events (Fraud, Operational risk, Investment Risk, Legal risk, Model risk, Liquidity risk).
· Membership Requirements, Transparency,Margin Methodology, Stress Testing, Risk Policy Issues, MiFID II Open Access, Mutualised Default Funds, Default Waterfall, Default Fund Margin, Skin in the Game, and Rights of Assessment.
· CCP Regulation v. ‘Too Big To Fail’, Recovery and Resolution Plans, Recovery Tools (Default and Non- Default Losses).
Expert Trainer Profile
Rodrigo Zepeda is Co-Founder and Managing Director of Storm-7 Consulting. He is an expert consultant who specialises in derivatives and banking and nancial services law, regulation, and compliance. He is an expert in a very broad range of regulatory compliance frameworks such as FATCA, the OECD CRS, MiFID II, MAD 2 MAR, PSD2, CRD IV, Solvency II, OTC Derivatives, CCP Clearing, PRIIPs, BRRD, AML4, and the GDPR. He holds a LLB degree, a LLM Masters degree in International and Comparative Business Law, and has passed the New York Bar Examination. He was an Associate (ACSI) of the Chartered Institute for Securities & Investment from 2004 to 2014 and is now a Chartered Member (MCSI). He has created and delivered numerous conferences and training courses around the world such as ‘FATCA for Latin American Firms’ (Santo Domingo, Dominican Republic, Panama City, Panama),‘MiFIDII:Regulatory,Risk,and Compliance (London, United Kingdom (UK)), ‘Market Abuse: Operational Compliance’ (London, UK), and AEOI (FATCA & CRS) Compliance and Technology (Manama, Bahrain). He has also delivered numerous in-house training Courses around the world to major international nancialinstitutionssuch as The Abu Dhabi Investment Authority (MiFID II: Operational Compliance, Abu Dhabi, the United Arab Emirates), the United Nations Principles of Responsible Investment (MiFID II: Final Review, London, UK), CAF, the Development Bank of Latin America (Swaps and Over- the-counter Derivatives, Lima, Peru), and Rothschild Investment Management (UK) Limited (AEOI (FATCA & CRS) Operational Compliance, London). He is a Reviewer for the Journal of Financial Regulation and Compliance and has also published widely in leading industry journals such as the Capco Institute’s Journal of Financial Transformation, the Journal of International Banking Law and Regulation, as well as e-books on derivatives law. Noted publications include “Optimizing Risk Allocation for CCPs under the European Market Infrastructure Regulation”; “The ISDA Master Agreement 2012: A Missed Opportunity”; “The ISDA Master Agreement: The Derivatives Risk Management Tool of the 21st Century?”; “To EU, or not to EU: that is the AIFMD question”; and “The Industrialization Blueprint: Re-Engineering the Future of Banking and Financial Services?”.