EFTA Document EFTA01399265

Wealth Management AmericasBNew Business InitiativesBDecember 2018 Prepared for: Oliver Esslinger Prepared on: 12/20/18 Prepared by: Melanie Keefe / BSO PROT0 Insufficient experienced supervisory resources in key control groups across 1st and 2nd lines of defense Distinct need for a qualified, experienced 2nd LoD who will respond promptly and knowledgably with reliable insight and engaged solutions Resource evaluation for DCO / BSO / ORM / Legal / Compliance Insufficient number of qualified licensed supervisors in a number of areas More supervisors are having to delegate more responsibilities and then losing touch with the details Not all have a solid understanding of the regulatory requirements of their role LatAm business increases risks related to complex structures and potential for money laundering BSO Observations 1 PROT1 Overview of WM Statistics Topic Title Title Commentary 1 (Slide 3) RM: 2018 new hires 13 3 Miami, 3 NY, 3 Geneva, 2 Chicago, 1 LA, 1 San Francisco 2 (Slide 4) New Clients / New Accounts 1547 235 LatAm; 1312 USO 3 (Slide 5) Latin America Statistics 235 accounts High 138, Moderate 56, Low 41 4 (Slide 6) Miami Statistics 140 accounts High 61, Moderate 43, Low 36 5 (Slide 7) Temporary Waivers / Exceptions 51 exceptions Approved 47; Overdue 1; Upcoming 1 (No Permanent Exceptions) 6 (Slide 8) Client Acceptance Forum Escalations 2 new clients reviewed Navarro - Accepted Patronato Benefico Oriental of the US - Rejected 7 (Slide 8) Complex Structures 2 Aromatiss and Long Term Insured Credit Fund 8 (Slide 10) Cross Border Training 4 trainings Connect2Learn: 3 online trainings; 1 training delivered remotely PROT2 PROT3 Relationship Manager - Hiring Statistics 3 cid:[email protected] PROT4 New Clients / New Accounts 4 PROT5 Latin America Business 5 Observations: Client Risk Program (CRP) issues raised for Venezuelan clientele BIU reports have been ordered to maintain these relationships LatAm clientele with domicile (either UBO or POA) in Netherlands DBSI surrendering broker dealer license in Netherlands 3 Fraud issues raised in 2018 Mons internal fraud identified in 2018 For the last 2-3 years, LatAm teams have not had appropriately licensed supervisors from a broker dealer perspective PROT6 Miami Business 6 PROT7 * Refer to Excel file for details: 1 Temporary Exception Overdue (shown in red) 3 Temporary Exceptions Future Due (in yellow) - Jan 2019 47 Temporary Exceptions already Approved and Deadline Met (in green) 0 Permanent Exceptions Temporary Waivers and Exceptions 7 PROT8 Client Acceptance Forum 8 2 New Clients reviewed in CAF: PROT9 Two KYC's for entities with complex structures Aromatiss (Global Print and Org Chart) Long Term Insured Credit Fund (Global Print and LLC LTICF) Complex Structures 9 PROT10 Connect2Learn trainings (provided to all WM employees): Anti-Financial Crime - KYC Level 2 Policy Version 3.2 Training for WM Staff Delivered remotely on 4/17/18 Compliance - Cross Border Risk Management Training Completion due by 12/9/18 Anti-Financial Crime - Anti-Fraud, Bribery and Corruption Completion due by 12/9/18 Anti-Financial Crime - Anti-Money Laundering, Counter Terrorist and Proliferation Financing Completion due by 1/28/19 Cross Border Training 10 PROT11 Additional Details: Latin America Strategy Approach 11 PROT12 PROT13 DBWM_3D-logo_wind energy_en Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Confidential Confidential PROT14 Second level Third level Fourth level Fift level Deutsche Asset & Wealth Management PROT15 Deutsche Asset & Wealth Management PROT16 Title Slide - one line subtitle \\192.168.2.2\daten\Kunden\DWS DeAWM Deutsche Bank_V2007\Arian_Masterumstellung_DEZ\Logos\Final\DeutscheBankWM_Identifier_- only_RGB.wmf Click to edit Master subtitle style Confidential Confidential PROT17 Title Slide - two line subtitle \\192.168.2.2\daten\Kunden\DWS DeAWM Deutsche Bank_V2007\Arian_Masterumstellung_DEZ\Logos\Final\DeutscheBankWM_Identifier_- only_RGB.wmf Click to edit Master subtitle style PROT18 Agenda 01 PROT19 Agenda 02 \192.168.2.117\daten\Kunden\DWS\ Stammdaten\Vorlagen\2013\DAWM PPT Templates- _FINAL\DAWM_pptx\DE\DAWM_Header_tayout_6.jpg PROT20 Section Divider 01 \192.168.2.117\daten\Kunden\DWS\ Stammdaten\Vorlagen\2013\DAWM PPT Templates- _FINAL\DAWM_pptx\DE\DAWM_Header_tayout_6.jpg PROT21 Section Divider 02 \192.168.2.117\daten\Kunden\DWS\ Stammdaten\Vorlagen\2013\DAWM PPT Templates- _FINAL\DAWM_pptx\DE\DAWM_Header_tayout_6.jpg [repeated 3 times] PROT22 One Content - content area only Second level Third level Fourth level Fifth level PROT23 One Content - content title and area Second level Third level Fourth level Fifth level PROT24 One Content - content title only PROT25 Two Content - content areas only Second level Third level Fourth level Fifth level Second level Third level Fourth level Fifth level PROT26 Text left / Picture right 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