Boyd: Obviously the threats we face are changing all the time – they seem to be changing rapidly. How do we best position ourselves for fighting financial crime in the future?
Jevtovic: Over the horizon, what are some of things really starting to challenge us from a financial intelligence perspective?
Well the war in Syria will end but ISIL’s war will not. So we’ll be confronted shortly with a lot of soldiers who have gone over and fought for what they believe in, they will need to go back somewhere. They will look for havens to continue their way of life and for them to practice their beliefs.
So all of a sudden the Southern Philippines becomes a potential key risk and threat for Australia – there is concern ISIL may well seek to declare a caliphate in the southern Philippines.
Its proximity and the fact it’s created an enclave that will allow radicals to do what they do. So what are we doing in anticipation of that? How are we thinking about that? What is the kind of financial intelligence we can collectively focus on? How can we work with our partners across South East Asia to ensure ISIL doesn’t re-emerge in this region?
Boyd: One of the growing threats of course is cybercrime. What is your perspective there?
Jevtovic: We have some serious challenges around cyber. The cyber threat is a real one, it’s a continuing one and I think it’ll be the hallmark of the landscape in which we need to operate into the future.
It’s frustrating when you think we still do so many things manually yet we’re up against an enemy like organised crime that can invest anything they want to be at the cutting edge. But at the core of a lot of our challenges is the issue of identity and that’s going to become worse.
You yourselves are contributing that. We’re looking at less contact between customer and financial institution. That’s a good thing because it means banking is going to be easier for the community.
How do we offset the fact most of the intelligence we used to receive was from a good bank officer making observations? How’s that going to happen in the digital and online network? It’s new intelligence we need to look for.
What’s the financial footprint in the digital environment and the online environment? We need to think differently about - I’m talking like this is coming, this has arrived and we’re catching up and we are really struggling to be quite frank.
Boyd: I don’t think any reasonable person would question the intention of what AUSTRAC and other regulators are seeking - we all want a safer and better financial system that is not corrupted. The challenge is the cost of safeguarding that system just keeps growing.
Jevtovic: We actually want ANZ to be spending less on regulation as it relates to AML/CTF because if you’re spending less on regulation I hope the board and the CEO employ more people; create more opportunities for Australians; reinvest in the economy of this country.
We get that and we’re committed to working with the industry in co-design strategies as to how we mitigate risk but at the same time bring down the cost of investment.
I want to make a point there, it’s one of the things from the moment I arrived here I hated hearing, was when people spoke about the regulatory burden. I just want to give you a perspective on that.
How can we call stopping terrorist, stopping paedophiles, how can we call that a burden? Because that’s what our regulation is actually all about.
It’s about stopping those people harming Australians, harming our children, how can that ever be a burden? So just a thought about a perspective I’ve taken and how I look at what I call investment.
Boyd: Of course as individuals and corporate citizens we do want to do the right thing. The other element though is it is good business to do the right thing.
It is a very much a deliberate strategy by the bank to invest in good financial crime risk management; it’s good for business, it’s good for the community, if you took away from Pauls’ presentation, there is a lot of commonality between the culture being created at AUSTRAC and the culture you are hearing being spoken about by the leadership at the bank.
There is no ‘magic’ behind that, it’s because it all makes sense. We are all in the same game about helping our communities thrive, and that necessitates fighting financial crime.
Guy Boyd is group head of financial crime at ANZ