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Premium Services Forum Americas Achieving operational excellence and building for the future. New York City, March 2 nd 2015
| Date post: | 17-Jul-2015 |
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Economy & Finance |
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Premium Services
Forum Americas
Achieving operational excellence and building for
the future.
New York City, March 2nd 2015
Welcome Back
Agenda
Morning
09:00am – 09:20am Opening Plenary
Chris Church, Chief Executive Officer– Americas
Danny Smedley, Managing Director Customer Support Americas
09:20am – 09:40am Customer Support is looking ahead
Danny Smedley, Managing Director Customer Support Americas
09:40am – 10:25am Operational Excellence and Risk mitigation
Marcel Bronmans, Chief Operations Officer
10:25am – 10:45am Coffee Break
10:45am – 12:00pm Updates
SWIFTRef
Anne-Sophie Walravens, Reference Data
Let’s talk about swift.com
Raymond Sekely, Customer Support Engineer
James Furlong, Customer Support Engineer
Product Updates on Messaging and Security
Suk Rawat, Product Manager
Chetan Uka, Product Manager
Capacity Planning
Emma Pacheco, Service Manager
12:45am – 2:30pm The world of Compliance - Interactive Workshop
Stacy Rosenthal, Head of Supplementary Products
2:30pm - 3:00pm Business Continuity, prepare and communicate
Ryan Hirschey, VP Federal Reserve Bank of New York
Cindy Wonsang, Service Manager
3:00pm – 3:15pm Coffee Break
3:15pm – 4:15pm Optimizing your infrastructure - Interactive Workshop
Aravind Baliga, Technical Services
Cindy Wonsang, Service Manager
Emma Pacheco, Service Manager
Bikash Mishra, Service Manager
4:15pm – 5:00pm Alliance Interfaces Portfolio Timeline
Emma Pacheco , Service Manager
Max Ratchkauskas, Head of Integration Services
5:00pm – 5:30pm Achieving operational excellence, a recipe for success
Richard Sandoval, Chef , Restaurateur, Television personality, Author
Becky Almodovar, Head of Key Client Support and Service Management
5:30pm – 5:45pm Wrap Up
Danny Smedley, Managing Director of Customer Support — Americas
Agenda
Afternoon
Chris Church – Chief Executive Officer – Americas
Danny Smedley – Managing Director of Customer Support Americas
Opening Plenary
Customer Support
Evolution
Looking ahead to the future
Danny Smedley – Managing Director of Customer
Support Americas
WHAT
WHY
HOW
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HOW
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Our Customers
HOW
HOW
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Our Customers
HOW
HOW
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Our People
Our Customers
HOW
What have we done
What have we done
What have we done
What do you value the most?
What additional things do you want to see
What other channels do you need
Operational Excellence
and Risk Mitigation
Marcel Bronmans, Chief Operations Officer
5+billion
10,800+
200+
25.87 million
Mission is to deliver
Operational Excellence
Pe
op
le &
Cu
ltu
re
As
su
ran
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Co
mm
an
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Co
ntr
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Pro
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Co
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s Im
pro
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Resilient & Secure Architecture and Infrastructure
Operational Excellence is accomplished by people
Make sure we learn from problems to continuously improve
Think to prevent problems in the first place
When a problem happens, let’s manage it to mitigate the impact
No matter what, problems will occur so let’s be prepared
Learn
Manage Plan
Prevent
FNAO
Qualified?Regression
Tested?
Change Control
Form Submitted?
Change Owner
Prepared?
Support
Agreement?Change Control
Board approved?Implementation
Review
Implement Change
Change
Business
Continuity
Testing
Regular resiliency
testing at the
system/network
levels
Service Continuity
exercises
Business Continuity
exercises
Simulation Support
exercises
300+ per year
More complex system
and network recovery
tests
6 weekends per year
Training-like events
to assess Business
Continuity Plans and
Crisis Mgmt process
50+ per year
1Multiple connections,
protected sites, built-in
backup within
Operating Centers
2Transfer operations to
alternate site within 20
minutes in the unlikely
event layer 1 fails.
3Disaster Recovery
Infrastructure for the
extreme case where
layer 2 is not enough.
1
2
3
• Understanding
potential cyber attacks
• Understanding own
exposure
• Make cyber part of
business decisions
• Preventing cyber
attacks from
succeeding
• Containing and
recovering from
detected cyber attacks
• Detecting ongoing
cyber attacks that
defeat the prevention
Learn
Manage Plan
Prevent
FNAO
Information security and cyber threats
Networks
Systems
Data
People
Buildings
Application
Internal
Threats
Ex
tern
al
Th
rea
tsE
xte
rna
l T
hre
ats
Hackers
Organised
crime
Service
providers
Customers
Terrorism
States
Partners
Security built in
Waterfall and Agile development methods
Agile/Scrum
Requirements Design Development Qualification Maintenance
Security
Classification
Security
Requirements
Network
Blueprints
Design
for
Security
Secure
Coding
Code
Reviews
Intrusion
Tests
&
Code
ReviewsChange
MgtSecurity
Baselines
Intrusion
Tests
Preparation Sprints 1 - nAfter
release
Waterfall
Impl
Hardening
Change
Mgt
Security built-in, in traditional or Agile projects
Policies,
procedures
and
security
baselines
People
and
culture
Intrusion
testing and
exercises
Tight
management
privileged
accounts
Segregation
of duties
Application
VPN VPN VPN VPN
API
SNLSNL
Application
Central
Services
Customer 1 Customer 2SWIFT OPC
Netw
ork
La
ye
r
Ap
plic
atio
n
La
ye
rIn
form
atio
n
Tra
ns
fer
La
ye
r
Three-layer messaging architecture
API
The effect of uncertainty
on objectives
One way to identify risk
Risk is a mind-set at SWIFT
Availability,
confidentiality
& integrity
Good
Governance
Continuous
Dynamic
Risk
Management
in all we do
Enterprise
Risk
Management
Franchise
Risk
Committee
G10 and 12
Governance
& Oversight
FNAO
External
Audit
ISAE
3402
Internal
Audit
Technology
Risk
Management
Information
Security Risk
Management
Coffee Break
Product Updates
SWIFTRef
Let’s talk about SWIFT.com
Product Updates on Messaging and Security
Capacity Planning
The latest and greatest
on SWIFTRef
Anne-Sophie WalravensPremium Support Forum - NY
Bankers World Online – New release
Now including also:• a wealth of financial and entity
information for in-depth counterparty analysisData sourced from Reuters, Dun & Bradstreet and Moody’s
• Extensive IBAN/SEPA data, including BBAN–to-IBAN constructor and IBAN Exclusion List
• Complete new look & feel offering enhanced usability
• A direct response channel to report on any possible data errors or omissions
Institution details
Sample view for one institution
Payments data overview
Legal entity and regulatory info
Sample view of IBAN Validator
More data RankingsBank hierarchy
(Legal, SSI)
HistoryMultiple
languagesMultiple
credit ratings
Knowledge base
Bankers World Online – in the pipeline
Newsfeeds
SWIFTRef APIs - New delivery channel
Offering:
• Real-time identification and validation of specific reference data, available in the SWIFTRef utility
• Standard web-call services between your user applications /interfaces and the SWIFTRef utility
• Restful APIs
API Webservices
SWIFTRefweb server
Swiftrefdata.com
Internet
SWIFTRef APIs – full list
• Get the LEI for a BIC
• Get the BIC for an LEI
• Check the Validity of a National ID
• Get National IDs for a BIC
• Get BICs for a National ID
• Get SSIs for a BIC
API Webservices
• Get Details of a BIC
• Check the Validity of a BIC
• Get Details for an IBAN
• Check Validity for an IBAN
• Get the BIC for an IBAN
• How to Reach a BIC in SEPA
Entity Plus Directory
XID
BIC
DUNNS
GIIN
LEI
CHIPS
National Bank ID
Coming up…
Sample data from Entity Plus
ENTITY ID ID TYPE CC XID* NAME
KGCEPHLVVKVRZYO1T647 LEI BE 000000440 BNP Paribas Fortis s.a./n.v.
1G159I.00269.ME.056 GIIN BE 000000440 BNP Paribas Fortis SA-NV
GEBABEBBXXX BIC BE 000000440BNP PARIBAS FORTIS (FORTIS BANK SA/NV)
BNPP.PA RIC BE 000000440 BNP Paribas Fortis S.A./N.V.
001 BANK ID BE 000000440 BNP Paribas Fortis
BE0403.199.702 VAT BE 000000440 BNP Paribas Fortis SA/NV
XID000000440*
(*) The cross-reference ID (XID) links the various identifiers of one and the same entity.
One Entity, many IDs
Offering: A consolidated file of all LEIs, including• Data from all endorsed LOUs, that adopted new common data file format• Formatted in new common data-file format• All duplicates removed• Monthly updates + Daily updates in Q2 2015.
The consolidated LEI file a sneak preview of Entity Plus !
(LEI data are also available in Bank Directory Plus and Bankers World Online)
Free usageuntil the official launch of Entity Plus!
Check out www.swift.com/SWIFTRef for more news
SWIFTRef Data Manager - Data analyser
Offering:• a software
- for data analysis across data-files (SWIFTRef files, in-house data files)
- for bespoke reporting• Files are exportable in TXT and XML• Running on Windows
Including:• Filtering of data
• Comparison of data across two files
• Merge of two different files for bespoke analysis and reporting
Data Manager
Filter
Merge
Compare
SOFTWARE FUNCTIONS
Non-SWIFTRef files
SWIFTRef files
IMPORT EXPORT
in txt, xlm, cvs
Customized file
SAMPLE
Filter
Compare
View added, deleted, modified
Merge
The SWIFTRef BIC Directory
…after ISO9362 implementation
Availability of a new version of the SWIFTRef BIC
directory
Nov2015
Oct2015
Availability of Technical
specifications and Sample file
on www.swift.com/
SWIFTRef
April-May2015
Customer validations & consultations
March2015
Availability of DRAFT technical
specifications on demand
If you wish to contribute to content and structure of the
new SWIFTRef BIC Directory, join as a pilot!
If you wish to test our IDEAS for the new
SWIFTRef BIC Directory, get the draft specs!
Questions
Answers&
Let's talk about
swift.com
The changes, updates and what’s in it for you
Ray Sekely and James Furlong
Agenda User management for SWIFTRef products
Single sign-on for SWIFTRef remote services
Alliance Bank File format change
“How to” Videos available on swift.com
User management for SWIFTRef products
User management for SWIFTRef productsSingle Sign On using swift.com user account credentials
After clicking, users are automatically
redirected to swift.com website login page.
If you are already logged-in on swift.com and access a URL on
swiftrefdata.com, then no new login is needed.
SWIFTRef users click on the "Login Here"
button on the home page of the SWIFTRef
access point:
After clicking the "Login“ button, users are
automatically redirected back to the
SWIFTRef access point.
Admin functions for SWIFTRef user administrator
SWIFTRef user administrator is defined in the E-Order form for a SWIFTRef product.
Admin functions for SWIFTRef user administrator
Self-registration and trial access
Single Sign On for SWIFTRef Remote Services
Single Sign On for Remote Services
The username in automated download/web services scripts must be modified with the SWIFT customer number as follows:
[email protected]_10991211
The customer number can be found in “Manage your profile” on swift.com under the “Profiles” tab
Alliance Bank file changes
Alliance Bank File format change
Removal of “old” Alliance Bank File formats
Only format available now is the encrypted .ABE
ABE file is only readable by Alliance Access/Entry
How-to Videos
Disaster Recovery Datacenter
Standalone HSM box
Power Failure
Scenario
3 Hours later
Product Management
UpdateMessaging and Security Portfolio
Chetan Uka & Suk Rawat - Product Management
AGENDA
Messaging
FileAct Evolution
ASP over FileAct
SNL Roadmap
Security
HSM Refresh
HSM usability enhancements
SWIFT WebAccess
FileAct Evolution
FileAct in numbers Strong adoption and traffic growth
Year over
Year
Growth
> 3TBper year
Trends
continue
+36%volume growth
in 2014
FileAct Evolution
Backwards compatible
Benchmark Testing
Support for larger file size
Increased Efficiency
Operational Enhancements
ASP over FileAct
Application Service Profile ( ASP )New Solution – Live & Pilot
Application Service Profile is used by messaging interfaces and applications to correctly send
and receive traffic for that service
New solution will be delivered: ASP file over FileAct
– Subscription required; No registration fee for Live or Pilot service
– Customer subscribes to SWIFTNet service on swift.com, Based on Store-and-Forward
Queue
– The tentative plan is to deliver the solution by end of Q2 2015
– SAA ASP Integration automation - Tentatively planned Q4 2015
Swift.com
Swift will place ASP file in SnF queue
Customer acquires queue, ASP file is delivered
ASP file will remain available on
swift.com
Application Service Profile ( ASP )New Solution - ITB
ITB SWIFTNet Service swift.info!x created for Vendor community
No Registration fee for ITB Service
This optional service will allow Vendors to fully automate the ASP file integration into
the Interface
The tentative plan is to deliver the solution by end of Q1 2015
Swift will place ASP file in SnF queue
Vendor acquires queue, ASP file is delivered
PowerPoint Toolkit – 23 October 2008 –
Confidentiality: restricted
127
SNL Roadmap
SNL Roadmap2015/2016 overview
W52
2015
Q 2
July
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
SNL 7.0.40 – Optional patchKey points
• Includes MI Channel Functionality and GLI
functionality in a GA patch to avoid separate patch
upgrades for CLS and GLI systems
• Adds support for personal certificates on HSM for
Web Access services (e.g. CLS, Euroclear
easyWay)
• Extends OS support to Windows Server 2012 R2
2016
Tentative End of Q4
SNL 7.0.X – Optional patchFileAct Evolution Enhancements
• Efficient Transfers
• Increased throughput
• Support transfers of files up to 2GB
• Operation enhancements
• Benchmark testing
• Planning currently ongoing for additional
enhancements and features
AGENDA
Messaging
FileAct Evolution
ASP over FileAct
SNL Roadmap
Security
HSM Refresh
HSM usability enhancements
SWIFT WebAccess
Security Portfolio – key projectsDraft timeline
2014 2015 2016
HSMIS6 HSM box rollout
Usability Enhancements Delivery
3Skey on Mobile
3SKey
New personal certificate
on HSM
Web
Access
Product Enhancements
Product Enhancements
Usability Enhancements
Specifications/Implementation
Higher latency HSM
clusters
HSM Refresh
HSM Service Life: 5-7 Years
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Sept 2015 –
end of support
Current HSM boxes are aging and must be refreshed
to address end-of-life, and contractual issues and to
ensure safe and continuous operations
Why Refresh – recap
84% 94% 67%
IS6 HSM boxes
shipped overall
IS6 HSM boxes
shipped to P & P+
IS6 HSM boxes
installed by P & P+
** Data as of 19 Feb 2015
Rollout is on track 0.0%
10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%
Jan
-14
Fe
b-1
4
Ma
r-14
Ap
r-14
May-1
4
Jun
-14
Jul-1
4
Au
g-1
4
Se
p-1
4
Oct-
14
Nov-1
4
Dec-1
4
Jan
-15
Fe
b-1
5
Planned shipment
Actual shipment
Installed
201520142013
SWIFT readiness
Customer communication
Customer scheduling
Early Adopters
Ship refresh boxes to all
cust, except ARG
candidates
Leftover shipments
Complete refresh
End of Support
Sept 30th
End of support
of current boxes
Dec
New order shipment
starts
Nov
open new box ordering &
stop old
May-June
generic comms
shipping schedule
Jan
Refresh shipment
starts
4300 IS6 shipped.
Total planned ~5155
IS5 HSM End of Support is getting closer
Improve HSM usability…
… without compromising security
Simplify day-to-day management of HSM boxes by making it easier to
install, configure and administer boxes and to manage HSM certificates
Reduce operational cost & risk associated with complex processes
Usability enhancements will be provided through SNL/SAG patches
installable on IS6 HSM clusters only
HSM usability enhancements – recap
Certificate Management
• No PED operation needed for a delete HSM certificate function
• Fully integrate partition & certificate management in SAG admin GUI
• Automate recovery of a group of certificatesOperationalsimplicity
Box Installation/Configuration
• No local PED needed to initialize remote PED access on a HSM box in default
state
• Option to use a unique PED token instead of 4 different tokens
• Minimize number of manual steps during installation processIncrease efficiency
Box Administration/Monitoring
• Accounts & passwords synchronized across boxes of a cluster
• No SNL re-registration needed after an HSM change
• Password expiry monitoring and customizable expiry period
Reduce
risk
Key enhancementsDelivery phased from Q2 2015 to Q3 2016
PowerPoint Toolkit – 23 October 2008 –
Confidentiality: restricted
137
SWIFT WebAccess
Product overview
End-user Service Provider
SWIFT
Enables service providers to offer highly secure access to their online, web based
services over SWIFT to their end-users
Service providers leverage SWIFT security
End-users use their SWIFTNet infrastructure and SWIFT credentials
Authenticate via HSM or token
Access over SIPN or Internet
Single Sign-On across services
Reuse SN infra (PKI)
Usual processes/tools
Simple to integrate (SAML)
Prevent unauthorized users
Delegated Authentication
Facilitate service adoption
Browse is now called SWIFT WebAccess
Key enhancements
> New personal certificate on HSM
Enable customers to use HSM certificates for personal
authentication, as an equivalent to personal token certificates
> Enforce password prompt for HSM users
Enable service provider to enforce password prompt for
secure transactions when using HSM certificates
> Support higher latency HSM clusters
Allow HSM clusters to be spread across data centres
for use on SWIFT WebAccess only
Delivery
in 2015
Capacity PlanningPlanning for growth
Emma Pacheco – Service Manager
AgendaIntroduction
Case study 1: Logical Terminal saturation (reactive scenario)
Case study 2: FIN Traffic growth (proactive scenario)
• Window Size (WS) limits emission and reception
• Set to max # msgs/hour
• If # of msg beyond max, emission/reception will be delayed msgs overflow to next hour
• Report in GMT and sent out only if saturation
LT Saturation
Introduction
• SNL Throughput: TPS per SNL
• SNL Payload: Line bandwidth (KB/s) all SNLs using same line
• Emission limit: SNL throughput
• Reception limit: Line bandwidth
• Report in GMT
SNL Saturation
Introduction
Case study 1: LT saturation
• WS Limits:
* depends on network latencyHigh network latency worst case
Low network latency best case
Window
Size
Worst Case *
(msg/hour)
Best Case *
(msg/hour)
Worst Case *
(msg/sec)
Best Case *
(msg/sec)
12 3,200 5,400 0.9 1.5
30 8,000 13,500 2.2 3.8
50 13,333 22,500 3.7 6.3
98 26,133 44,100 7.3 12.3
Case study 1: LT saturation
• Traffic statistics
LTWindow
size
Average Input
(msg/s)
Peak Input
(msg/s)
Average Output
(msg/s)
Peak Output
(msg/s)
SWHQUSUSA 30 0.62 3.63 0.38 3.36
SWHQUSUSB 30 0.10 0.89 0.08 2.01
SWHQUSUSC 30 0.10 0.84 0.25 2.18
WS msg/sec
30 [ 2.2 – 3.8 ]
50 [ 3.7 – 6.3 ]
Case study 1: LT saturation
• Potential Saturations
WS msg/sec
30 [ 2.2 – 3.8 ]
50 [ 3.7 – 6.3 ]
Input
LT Saturation start Length(mins) Average(msg/s) Peak(msg/s)
SWHQUSUSA 26 Jan 2015 04:00 220 3.4 3.63
SWHQUSUSA 27 Jan 2015 04:05 200 2.7 2.9
Output
LT Saturation start Length(mins) Average(msg/s) Peak(msg/s)
SWHQUSUSA 26 Jan 2015 13:00 115 3.1 3.36
SWHQUSUSA 27 Jan 2015 13:25 90 2.9 3.2
Case study 1: LT saturation
• Saturation Pattern
WS msg/sec
30 [ 2.2 – 3.8 ]
50 [ 3.7 – 6.3 ]
• Hourly Statistics [msg/hour]
Case study 1: LT saturationWS msg/hour
30 [8Kmsg - 13.5Kmsg]
50 [13.3Kmsg - 22.5Kmsg]
GMT
HourLT A input LT A output LT B input LT B output LT C input LT C output
0 AM 210 . 279 . 249 .
…
4 AM 11,958 15 30 99 78 522
5 AM 12,423 207 102 339 63 654
6 AM 12,159 180 198 504 147 1,662
7 AM 8,535 402 183 1,467 183 5,451
…
2: Increase WS
3: Leave as is, notify SWIFT
(business not impacted by
delays)
1: Load Balance
1: Load Balance
Case study 2: FIN traffic growth
Specifications:
• Traffic: +50% input traffic 2KB msgs
• Timeframe: 5 – 7:00 GMT
• Destination: SWHQUSUS, LTs A/B/C and WS 50
• SNL: snl12345
• Leased line: T1, solely used by snl12345d1
Can my current LTs and SNL absorb this traffic, or will it be delayed ?
Case study 2: FIN traffic growth
Review
• LT saturation report current Fin traffic (peak day)
• SNL saturation report SNL (throughput and payload)
• FIN batching report
Traffic projection
• New FIN traffic impact
• New SNL throughput/payload and LL BW impact
Case study 2: FIN traffic growth
• Add 50 % to existing traffic
GMT
Hour
LT A input
current
LT A input
+ 50%
LT B input
Current
LT B input
+ 50%…
4 AM 4,998 4,998 30 30 …
5 AM 6,879 10,319 102 153 …
6 AM 8,199 12,299 198 297 …
7 AM 5,175 7,763 183 275 …
8 AM 420 420 486 486 …
WS msg/hour
50 [13.3Kmsg - 22.5Kmsg]
98 [26.1Kmsg - 44.1Kmsg]
Case study 2: FIN traffic growth
• FIN current traffic vs projection
WS msg/hour
50 [13.3Kmsg - 22.5Kmsg]
98 [26.1Kmsg - 44.1Kmsg]
• FIN batching (actual)
Case study 1: LT saturation
WS 50 # FIN 1IA
Min value 1
Max value 8
• SNL TPS (actual) projection (extra)
Case study 2: FIN traffic growthTime
Extra
FIN/hour
5 AM 3,440
6 AM 4,100
7 AM 2,588
Time FIN/sec 1FIN=1IA 30 FIN=1IA
5 AM 1.0 1.0 TPS 0.03 TPS
6 AM 1.1 1.1 TPS 0.04 TPS
7 AM 0.7 0.7 TPS 0.02 TPS
Imp
ac
t
(Wo
rst
ca
se
) TimeMax Actual
TPS
Max Extra
TPS
5 AM 2.5 +1.0 TPS
6 AM 2.75 +1.1 TPS
7 AM 2.35 +0.7 TPS
• SNL Payload (actual) projection (extra)
Case study 2: FIN traffic growth
Time FIN/sec 2KB FIN
5 AM 1.0 2.0 KB/s
6 AM 1.1 2.2 KB/s
7 AM 0.7 1.4 KB/s
Imp
ac
t
(Wo
rst
ca
se
) TimeMax Actual
KB/s
Max Extra
KB/s
5 AM 2.5 +2.0 KB/s
6 AM 3.8 +2.2 KB/s
7 AM 3.5 +1.4 KB/s
TimeExtra
FIN/hour
5 AM 3,440
6 AM 4,100
7 AM 2,588
Lunch Break
Compliance - Back to
the FutureGoing back to the basics to address the needs of
the future
Stacy Rosenthal, Head of Supplementary Products
James Wills, Senior Business Manager
• This session will last for 1hour and 45 minutes
• It consist of a presentation, an activity and a debriefing
• Slides will be available for download after the event
• Please do not modify the setup of the tables, they are
ready for the activity.
• Questions can be raised during the activity and
debriefing
Logistics
• Raising awareness of Compliance matters within
financial institutions (the objectives, the actors, the
threats, the responses, etc) in an interactive way with
peers.
Objective
• KYC
• Anti-Money Laundering
• Counter Terrorism Financing
• Sanctions Compliance
• Bribery and Corruption
• Fraud
• Identity theft
• And much, more…
Financial Crime
3) Integration Bring the “cleaned” assets back in the
legitimate economy.
Selling Shares, Buying Property...
1) Placement Place the criminal assets into the financial sector.
Often Cash…
2) Layering
Create Complex layers of financial tractions:
Shell Companies, Trusts, etc.
What is Money Laundering?
The Three Basic Steps.
What are Sanctions?
165
Sanctions impose controls on transactions and freeze assets and
are used by governments to influence or constrain the behaviour
of governments and individuals.In
tern
ational
bodie
sC
oun
trie
s
United Nations
European Union
Germany UK FranceUnited
States
Who is
responsible for
financial
sanctions?
• Countries
• Companies
• Individuals
• Vessels
• Aircrafts
What are Sanctions?
Who are on these lists?
USA – OFAC UK – HM Treasury United Nations
Country related
Balkans
Belarus
Burma
Ivory Coast
Cuba
Democratic Republic of the Congo
Iran
Iraq
Lebanon-Related
Libya
North Korea
Somalia
Sudan
Syria
Yemen
Zimbabwe
Other targeted/List based
Counter Narcotics Trafficking
Counter Terrorism
Diamond Trading
Former Liberian Regime of Charles Taylor
Non-Proliferation
Transnational Criminal Organizations
Country related
Afghanistan
Belarus
Burma/Myanmar (Suspended to Apr 2013)
Democratic Republic of the Congo
Egypt
Eritrea
Federal Republic of Yugoslavia & Serbia
Iran (human rights/nuclear proliferation)
Iraq
Ivory Coast
Lebanon and Syria
Liberia
Libya
North Korea (Democratic People’s Republic of
Korea)
Republic of Guinea
Somalia
Sudan
Syria
Tunisia
Zimbabwe
Other targeted/List based
Al-Qaida
Terrorism and terrorist financing
Country related
Côte d'Ivoire (Ivory Coast )
Democratic Republic of Congo
Democratic People's Republic of Korea (North
Korea)
Eritrea
Iran
Iraq
Lebanon
Liberia
Libya
Somalia
Sudan
Other targeted/List based
Al-Qaida, Taliban, Bin Laden
Terrorism
Examples
What are PEPs?
PEPs are individuals who, by virtue of their office, might become
exposed to corruption
PEP Lists include, but are not limited to;
senior politicians, senior civil servants, and military officers in every
country, as well as their close families, colleagues, and advisors.
PEPs Lists contain
roughly 1.5 Million
Entities.
How a financial institution deals with
compliance?
Customer identification &
verification
Initial due diligence
Customer screening
Ongoing due diligence
Customer & transaction monitoring
Transaction screening
start transacting
On-boarding process Ongoing reviews
Compliance is a pervasive function within
the financial institution function
Banking Group
BusinessRetail | Corporates | FI | Business Compliance | …
Operations and ITMonitoring | Investigation | Operations Compliance | …
Compliance & Risk ManagementMLRO | Sanctions | AML | Capital Markets | Anti-Corruption…
Common Titles
Head of GTB Compliance
Head of KYC Team
Head of FI Group
Network Management
Operations & Regulation
Operations Risk & Controls
Head of Sanctions Screening
AML Advisory & Compliance IT
Head of Group Compliance
Head of AML & CTF
Sanctions & Embargo
Key Elements of an AML Program
1) A system of internal policies, procedures and controls• KYC / CDD• AML Transactions Screening• PEP Screening• Business Rules, Procedures, and Controls
2) A designated compliance officer with day-to-day oversight over the AML program;
3) An independent audit function to test the AML Program; and
4) An ongoing employee training program.
AML Program
Independent
Audit
Compliance – AML Program
Training “Ensure the Rule Book is
being used
Compliance
Officers
The
Business
“Write the Rule Book”
“Implement the Rule Book”
Questions
The World of
ComplianceInteractive Workshop
Stacy Rosenthal, Head of Supplementary Products
Objective
• Raising awareness of Compliance matters within financial institutions
(the objectives, the actors, the threats, the responses, etc) in an interactive
way with peers.
The World of
Compliance Rules
The Authorities
The facilitators are the highest level of decision regarding the course of the activity
and the interpretation of the rules.
The Participants Profiles cards
Each participant has a profile card with:
• The participants mission
• His/her area of responsibility in the 6 steps process
• Some hints for decision making
• Reminder for a few acronyms
• A post it to log some of the encountered challenges
KYC Responsible
Customer
identification
& verification
Initial due diligence
Customer screening
Ongoing due diligence
Customer & transaction monitoring
Transaction screening
start transacting
On-boarding process Ongoing reviews
YOUR MISSION:
Ensure your institution investigates, establishes and monitors solid and trustable business
relationships in respect of KYC related principles and regulation.
USEFULL ACRONYMS:
AML: Anti Money Laundering
CDD: continuous due diligence
KYC: Know Your Customers
PEPs: Politically Exposed people
UN: United Nations
HINTS:
- New/updated PEP?
- Usable Info about Customer business
- Usable info for CDD
- When is it applicable?
CHALLENGES:
The playing field – Turns & Domains
1 – Take & read a card
Information cards vs Decision cards
Card C1.1
means
Turn-1,
card-1
Card C1.3
means
Turn-1,
Card-3
IF NOT A DECISION CARD:
Place the card on one slot of the current turn (column), in the most appropriate area of responsibility (line)
based on the card text
IF THE CARD IS A DECISION CARD:
– If the Team accepts the proposed action, the card is placed on the DECISION line at the slot
corresponding to the current turn.
– If the Team rejects the proposed action, the card is placed under another card on the board being the
reason of the rejection. (e.g. an actor of the decision card is under sanctions => place the decision card
under the card mentioning the sanction)
Hint: Some card fit in several slots. Choose the most appropriate one.
Hint: Different Decision cards could be rejected for the same reason.
Hint: In this phase, the auditor should take notes on the reasoning in preparation of phase 5 – internal audit
2 – Agree where to place the card
3 – Place & take accountability
Accepted
Rejected3 – Place & take accountability - Decision
4 – repeat until all cards are played
Pay attention to the sequence of the cards, ensure they go C1.1, C1.2, C1.3, C2.1, C2.2, etc
Hints:
• Info from the press: press info not useable in compliance process.
• Info to/from Regulators/Authorities: e.g. updated legal obligations
• Sanctions list Mgt: e.g. new/updated sanction list
• AML: Info to refine transaction monitoring/filtering in AML system
• KYC: info to add/update PEPs records or info qualifying existing/prospect customers
5 – Audit
5.1 Internal Audit –Call the facilitator
• Based on his notes, the Auditor challenges one of the cards position. The team can then change this card (and only this one) from position respecting the card positioning rules (see step 2 and 3).
5.2 External audit –On facilitator
announcement
• The auditors shift of table clockwise. The scenario solution is revealed. The auditor counts and reports the compliance score and the business score
…. And now,
Time to start Interacting
& have fun!
Business Continuity,
prepare and
communicate
Ryan Hirschey, Federal Reserve Bank of New York
Cindy Wonsang, Service Manager
What have we discussed during PSF ?
The Federal Reserve of New York approach
Wrap up
Agenda
2012 - Resiliency at SWIFT
2013 - Be Ready for the Unexpected
2014 Cyber attacks
Federal Reserve Approach
3 Areas
Technology Processes People
Evolution of Continuity Planning: Pre 9/11
Technology
• Primary data center in headquarters
• DR site in NYC metro area
Processes
• Annual bank-wide Business Resumption Test to DR site
• Single application DR activation during deployment weekends (functional upgrades)
• Market Infrastructure tests
• SWIFT
• Fedwire
People
• DR site: Limited user space for essential staff
• No regular business line staffing in DR site
Evolution of Continuity Planning: Post 9/11
Technology
• Primary data center relocated
• DR site moved elsewhere in US
Processes
• Semiannual bank-wide Business Resumption Test to DR site
• Single application DR activation during deployment weekends (functional upgrades)
• Market Infrastructure tests
• SWIFT
• Fedwire
People
• DR site: Ongoing split operations
• Shift over time for business lines away from co-location with data centers (geographic dispersion)
Continual Evolution
De-emphasis of treating one site as Primary and another as DR
• Sibling sites with exact same configuration/capabilities
• Importance of latency testing/profiling
• Reducing “chattiness” of app communications across sites
• Use of Latency Profiling tool before new site was operational
Regular app rotations across sites
• Incorporated into Business Resumption Tests
Other Thoughts
Communication
• Establishment of Business Continuity office within Operational Risk Function
• Frequent tests of contingency notification tools
• Recurring tabletop exercises
• Technical Scenarios
• Business Scenarios
Enhancements to Split Operations model
• Use of telecommuting
Importance of Counterpart, Infrastructure Testing
• SWIFT
• OPC Recovery
• Cold Start
Other Thoughts, Continued
Business Continuity must be “baked” into design considerations
• Technology
• Processes
• People
Application and Infrastructure Design
• Establish consistent framework for application architecture and recovery scenarios
• This does not mean one size fits all
• Make technology location transparent to end users
• Test early, test often
• Execute latency, performance, and business recovery testing as part of change management discipline
Other Thoughts, Continued
Intraday Business Activity Matrix (day in life)
• Time of Day
• Business Activity
• Criticality of Activity to Business
• Applications Involved (Internal, External)
Troubleshooting Workflow (detailed)
• Standardized because application architectures are standardized
• Including infrastructure mgt, notification systems
Communications Workflow
• Include business, technical notifications, escalation
• Include decision point for failover
• Include post mortem / lesson learned activities
Process
Resiliency
Recovery
Contingency
Wrap Up
What will you do when back in the office?
What would like us to covernext year ?
Coffee Break
Optimizing your
infrastructure Interactive Workshop
Aravind Baliga, Technical Sales
Cindy Wonsang, Service Manager
Emma Pacheco, Service Manager
Bikash Mishra, Service Manager
Goal of this session
Optimize your infrastructure based on specific drivers
Share effective ways to operate and manage your infrastructure
Share how this new setup meets your needs
Agenda
Introduction
(20’)
Optimize and Operate your infrastructure
(30’)
Debrief:
Share your ideas
(20’)
Drivers
Optimization
Business and
Regulations
Costs
Resilience
Integration
• Governmental regulations
• Industry regulations
• Sanctions
• Traffic evolution
• Mergers
• STP maximization
• Agility
Business and Regulations
• Capital expenditure
• Leverage operational costs
• Reduce messaging costs
• Optimize billing costs
• Reduce TCO
Costs
• Leverage scalability
• Ensure robustness
• Reduce risk
• Implement Best practices
Resilience
•With back office systems
•With AML filtering
•Acquiring and change business
•Change in standards
Integration
Increase your resiliency
Maintenance
Regulations
CostsCapacity planning
Zero down-time
Internal policies
Internal policies Benchmarking
Optimizing your infrastructure
Example: Recovery objectiveR
ec
ove
ry P
oin
t O
bje
cti
ve
(Am
ou
nt
of
los
t d
ata
)
Recovery Time Objective
(Time to restore service)
0
Single Site
Active / Standby Setup
Dual Active Setup
Alliance Lifeline
Alliance Access
Database Recovery
InternetOptional: Alliance
Connect
Alliance
Lifeline
HSM
Interface MV-SIPN
Connect to SWIFT via
Alliance
LifelineBrowsers
@
AutoClient
Primary / backup / DR infrastructure
at customer site
Alliance Lifeline
light ‘footprint’
at customer site
Application
When your main SWIFT
connection becomes
unavailable
Example: Recovery objective
Alliance Lifeline
Alliance Access
Embedded Oracle Database
Datafiles Redo Logs
- Native feature
- Based on Industry proven technology
- Recover on another host
- Single command to recover
Database Recovery
Mirror Disk Backup disk
A single command
saa_dbrecovery
DB BackupsAlliance Access
FailureTraffic
In case of DB corruption
Using DB recoveryUp to the last
committed state(*)
Example: Recovery objective
Alliance Access Database Recovery
Health Check
SWIFTNet Online
Operations Manager
Compliance Analytics
Leased Line Usage
ReportOutsourced resources
Availability Reports
Online Operational
Monitoring
Watch Analytics Configuration Browser
Operating and Managing your infrastructure
Example: Reports
Data availability (time)
Availability ReportsLeased LineO2M Watch
When can I expect
peaks ?
Is my traffic well
balanced across
SNLs ?
Is there a
bottleneck ?
Have volumes /
throughputs increased ?
Can I handle more
traffic in my current
setup ?
Example: Reports
O2M
Example: Reports
Watch reports
Improves operational
efficiency and
quality of your SWIFT
messaging
activity to reduce costs
Online monitoring tool
• Type of traffic (e.g.Fileact)
• Which service
• Which SNL
• The exact pattern
• The concurrent traffic
Example: Reports
Leased line
Resiliency
Integration
Regulations
Costs
Your time starts now …
• What was your driver?
• What have you learned?
• Successes
• Challenges
• What is missing?
Debrief
Resiliency
Integration
Regulations
Costs
Debrief
Review
OptimizeAssess
A continuous process…
Alliance Interfaces
Portfolio Timeline
Emma Pacheco, Service Manager
Max Ratchkauskas, Head of Integration Services
Agenda Alliance Interfaces release timeline 2015
- Alliance Access
- Alliance Gateway
- Alliance Web Platform
- Alliance Messaging Hub
SWIFT Alliance user community
Release Timeline 2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …. Jul
Q1’15 Q2’15 Q3’15 Q4’15 Q1’16
SAA 7.0.83SAA 7.1
AWP 7.0.60SAA/E 7.1.10
SAA 7.1.15
AWP 7.0.65SAA/E 7.1.20
Released
Tentative
SAG 7.0.40
AIX 6.1 TL04 not supported anymore
Alliance Access 7.0.83 - optional
Specific fixes:
• Permission issues with Approval > Dispose Message
• Memory Leak for IPLA
• High CPU usage with RMA & non-ASCII chars
• Throughput reduction due to pop-up alarms
13 Jan 2015
Release Timeline 2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …. Jul
Q1’15 Q2’15 Q3’15 Q4’15 Q1’16
SAA 7.0.83SAA 7.1
AWP 7.0.60SAA/E 7.1.10
SAA 7.1.15
AWP 7.0.65SAA/E 7.1.20
Released
Tentative
SAG 7.0.40
AIX 6.1 TL04 not supported anymore
Alliance Access 7.1 - optional
GUI
• Support for MyStandards
• FileAct payload preview and archive option
Supportability
• SNMP community name
Security
• LDAP/OTP server groups
• TLS support
13 Mar 2015
New versions for ADK modules needed
Alliance Access 7.1 - optional
Operational
• Central deployment package installation
• Less activities in Housekeeping mode
Functionality
• All patches after 7.0.80
Installation
• Can be from scratch
13 Mar 2015
Alliance Access 7.1 - optional
New OS Support
• Windows Server 2012 R2
• Windows 8.1 and IE 11 for AWP GUIs
Integration
• XML without binary structure
13 Mar 2015
Alliance Access 7.1 - optional
• My Standards:
– Proprietary deployment package for messages/templates
13 Mar 2015
Alliance Access 7.1 - optional
• My Standards:
– Show specific fields based on business usage guidelines
13 Mar 2015
MT 103
Alliance Access 7.1 - optional
• My Standards:
– Display less options as per business usage guidelines
13 Mar 2015
Release Timeline 2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …. Jul
Q1’15 Q2’15 Q3’15 Q4’15 Q1’16
SAA 7.0.83SAA 7.1
AWP 7.0.60SAA/E 7.1.10
SAA 7.1.15
AWP 7.0.65SAA/E 7.1.20
Released
Tentative
SAG 7.0.40
AIX 6.1 TL04 not supported anymore
Alliance Web Platform 7.0.60 - optional
GUI
• Admin GUI - Firefox
Supportability enhancements
• Installation
• Command line tools
• SNMP community name
New OS Support
• Windows Server 2012 R2
13 Mar 2015
Only supports Gateway 7.0.25 or higher
Release Timeline 2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …. Jul
Q1’15 Q2’15 Q3’15 Q4’15 Q1’16
SAA 7.0.83SAA 7.1
AWP 7.0.60SAA/E 7.1.10
SAA 7.1.15
AWP 7.0.65SAA/E 7.1.20
Released
Tentative
SAG 7.0.40
AIX 6.1 TL04 not supported anymore
Alliance Access/Entry 7.1.10 - mandatory
Message Standards
2015
All patches since 7.0.80 (mandatory)
Jul 2015
Release Timeline 2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …. Jul
Q1’15 Q2’15 Q3’15 Q4’15 Q1’16
SAA 7.0.83SAA 7.1
AWP 7.0.60SAA/E 7.1.10
SAA 7.1.15
AWP 7.0.65SAA/E 7.1.20
Released
Tentative
SAG 7.0.40
AIX 6.1 TL04 not supported anymore
Alliance Gateway 7.0.40 - optional
Admin GUI:
• HSM clean-up w/o PED operations
• HSM certificates enhancements
• Personal certificates on HSM for Web Access services
Security:
• LDAP/OTP server groups
• TLS support
July 2015
Alliance Gateway 7.0.40 - optional
Supportability
• SNMP community name
Functionality
• Includes CLS (7.0.29)
Installation
• Can be from scratch
New OS Support
• Windows Server 2012 R2
• Windows 8.1 and IE 11 for AWP GUIs
July 2015
Release Timeline 2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …. Jul
Q1’15 Q2’15 Q3’15 Q4’15 Q1’16
SAA 7.0.83SAA 7.1
AWP 7.0.60SAA/E 7.1.10
SAA 7.1.15
AWP 7.0.65SAA/E 7.1.20
Released
Tentative
SAG 7.0.40
AIX 6.1 TL04 not supported anymore
Alliance Access 7.1.15 - optional
GUI:
• Multi-window
• Monitoring
• Usability
• Custom GUI, etc.
ISO9362:2014 – revised BIC standard support
Improved ISO20022 usability
End Dec 2015
Release Timeline 2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …. Jul
Q1’15 Q2’15 Q3’15 Q4’15 Q1’16
SAA 7.0.83SAA 7.1
AWP 7.0.60SAA/E 7.1.10
SAA 7.1.15
AWP 7.0.65SAA/E 7.1.20
Released
Tentative
SAG 7.0.40
AIX 6.1 TL04 not supported anymore
Alliance Web Platform 7.0.65 - optional
GUI:
• Changes to support multi-window (Access GUI packages)
• Any additional changes to support Alliance Access 7.1.15
End Dec 2015
Release Timeline 2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …. Jul
Q1’15 Q2’15 Q3’15 Q4’15 Q1’16
SAA 7.0.83SAA 7.1
AWP 7.0.60
SAG 7.0.40
SAA/E 7.1.10SAA 7.1.15
AWP 7.0.65SAA/E 7.1.20
Released
TentativeAIX 6.1 TL04 not supported anymore
Alliance Access/Entry 7.1.20 - mandatoryJul 2016
Message Standards
2016
All patches since 7.1.10 (mandatory)
SWIFT Alliance FamilyOverview
Cloud
SIL
Key Features
Why Alliance Messaging Hub?
The drivers for choosing AMH?Your FileAct InterAct
solution does not keep up
with your growth
Multi network
integration
Zero downtime
Active/Active
requirements
TCO reduction &
scalable deployment
Performance,
scalability and
throughput
Flexible workflow
management increases
time to market
Aging middleware
replacement
New RTGS
mandates ISO20022
Customer Implementations
• US institution : up-to 600K FIN messages per day
• SWISS Institution : up-to 3 Mil FIN messages per day
• Belgian institution : more than 130,000 files per day
• German institution : files size over 2GB/file
US customer has removed
23 Solaris HW and replaced them all by a global
virtualized environment running AMH
active/active.
Cost saving factor: 8
Rich features bring measurable benefits
Flow
managementPowerSearch
Resiliency &
Active/Active
solution
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
AMH Roadmap 2014-2015
Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15
Delivered Proposal
AMH 3.3 Rich console for operational management
Enhanced upgrade process
Health reporting
Additional technology refresh (App Server/DB)
SIC4 readiness
AMH 3.1.0.6 FIPSGateway monitoring
Template security
Printing monitoring enhancements
Partitioning health check
AMH 3.2 Power Search
Templates management
Technology refresh (AppServer/DB/Etc.)Standards Release
Secom
Standards ReleaseSecom
AMH 3.4 API Network Gateway
Data mining and dashboard
User experience enhancement
Standards ReleaseSIC/Secom
SWIFT FIN & MX
AMH 3.2 Highlights – PowerSearch
Replicate data to non rational DB
Advantage:
• Free text search in payload and history
• Search performance
Currently:
Both DB’s are in sync.
Future use:
Ability to save data for longer periods
observe all your AMH instances
give real-time data
offer alerting on events related to
the system
visualize your AMH configuration in
different views
help guide a user to an issue
AMH 3.3 Highlights – Operational
Dashboard
AMH 3.3 Highlights – Operational Dashboard
Logical Node
Physical Node
Service Status
Connected
Not Connected
Disabled
Error
AMH Instance (DB)
Achieving operational
excellence,
a recipe for success
Richard Sandoval, Chef , Restaurateur, Television personality, Author
Becky Almodovar, Head of Key Client Support and Service Management
Modern Mexican I Pan Latin I Latin Asian I Mexican Fast Casual I Cantina I QSR
Closing Remarks
Wrap Up
Danny Smedley – Managing Director of Customer
Support Americas
Let’s Dine!
