Global financial experts today cautioned banks and financial institutions in the region that they need to watch out against the increasing number of financial crimes and irregularities.

They urged the institutions to adopt tight security processes and risk management techniques to check possible losses and reputational damage.

Speaking at the second annual GRC and Financial Crimes Conference and Exhibition 2010, organized by the Dubai-based Allied Compliance Consultants (ACC) in strategic partnership with Dubai Outsource Zone, a member of Tecom Investments, speakers pointed to the increasing number of financial crimes and money laundering cases worldwide and in the region as a significant indicator of the spread of the malaise in an increasingly interconnected world.

The two-day second annual GRC and Financial Crimes Conference and Exhibition 2010, which opened today, focuses on Governance, Risk Management, Compliance & Financial Crimes.

Quoting Central Bank data, Hossam M Abd El-Rahman, managing partner-ACC, said: “In 2009, it was estimated that reported Suspicious Money Laundering (STRs) rose to 1,729 compared to 1,170 in 2008. While the UAE banking sector has foolproof mechanisms to check such crimes, it is also imperative that banks and FIs at individual levels endeavor to put in place processes that mitigate such risks.”

“Financial crimes tend to dent the reputation of an FI in a major way and affect their credit ratings and hence the focus should be clearly on maintaining relevant security processes, conducting regular audits and assessing risk levels with the help of experts,” he said, adding that the banks and FIs, in the UAE has a high level of awareness on these issues guided by the Central bank directives.

Malek Al Malek, managing director, Dubai Internet City and Dubai Outsource Zone, said: "We believe that the GRC and Financial Crimes Conference and Exhibition is a strategically significant event to learn and update on setting prudent benchmarks on best practices, corporate governance and risk management. We as an outsource hub in the Mena region are proud to be partnering with this event.”

He said the event is an ideal platform for financial institutions to interact with experts on financial crimes, money laundering and other related irregularities.

The event  is attended by key senior managers, members of board of directors, chief executive officers (CEOs), and chief operating officers (COOs), as well as compliance, anti-money laundering and counter-terrorism financing(AML/CTF), risk management, internal/external auditors and anti-fraud professionals to share their knowledge in open dialogues with regulators, international experts and industry professionals.

The conference will have a series of panel discussions, dialogues, workshops and presentations by international experts on the most crucial regulatory developments, ways to ensure compliance, manage risk and fight financial crimes. – TradeArabia News Service