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KYC remediation plan Americas June 11th 2018
PROT0
Executive Summary
HR Status
Updates were applied to the smooth-out schedule over the past week (the due
dates for 83 customers accerterated to May and June were reverted back to
their initial due dates pending AFC approval to use the smooth-out schedule
for reporting overdues). May and June figures went from 107 and 124 respectively to 60 and 88
Total number HR customers due January - May 258; last weeks reporting was
though April month end (198 customers) 199 have been approved
59 are overdue; 25 from Jan - April (a reduction of 7) and
23 are pending approval; 8 from Jan - April (a reduction of
6 are in progress; none remaining from Jan - April
30 in rejected status; 17 from Jan - April (a reduction of pending client documentation or research and 7 are pending
Manager / Banker.
HR June 15th target for submitting cases 2 weeks prior to month end due date
- There are 30 customers whose KYC has not yet been started (this represents
11 relationships) to be initiated next week.
Process and Quality, Resourcing and Offboarding (3 levers)
A revised 2018 remediation schedule was submitted AFC (Irwin Nack) who
subsequently submitted it to global AFC for approval to use the "smooth out"
approach for tracking and reporting overdues (global AFC approval pending)
A 48-hour rejection turnaround requirement for case managers has been instituted and AFC should start to see improvements within a week; tracking
continues to be challenging given it is manual
Resourcing: Given the current ABR resource gap a creased in the moderate and
low risk backlog for this segment is expected to be realised beginning 2H
2018
Case Managers: 24 out of 26 resources on-boarded and one offer accepted (a
replacement for 1 resource who transferred to ABR
ABR (KYC SME and Neutral Control): 5 our of 9 FTE are on-boarded with hiring expected to be completed by the end of June and respectively training
by the end of July. In addition, hiring in progress for 12 temps with 5
offers excepted to go out in the near-term
Off-boarding: The small account closure program has been initiated, account
closure framework, templates & communication to be completed in June;
actively working with legal to finalize letters and client notification
timelines and a project manager has been identified focused to focus on
tracking and reporting
Passcon: the vendor Passcon will be on-sight in NY next week to perform a
review of the remediation program to identify opportunities and solutions
for improvement (referred by DB executive management)
WM Americas KYC Program 34 from May 4) and 15 from May
2) with 23 are with the RM/ Case
PROT1
Program Status - Q1 / Q2 (as of 6-8-2018 - based on the smooth-out schedule)
Total Approved Overdue Primary Officer
MD
ABR
AFC
Not Yet Started In Progress Rejected Approved High Risk
31/01/2018
57
57
100% High Risk 28/02/2018
54
53
1
1
98%
High Risk 31/03/2018
44
32
12
4
8
PROT2
73%
High Risk 30/04/2018
43
31
12
3
9
72%
High Risk 31/05/2018
60
26
34
15
6
13
43%
High Risk 30/06/2018
88
9
2
3
30
39
5
10%
High Risk
Total
394
256
59
4
5
19
30
45
PROT3
35
65%
Moderate Risk 31/01/2018
43
23
A risk acceptance is in place for until YE 2019
8
3
5
4
53%
Moderate Risk 28/02/2018
72
38
13
6
9
6
53%
Moderate Risk 31/03/2018
98
20
1
30
11
24
12
20%
Moderate Risk 30/04/2018
88
24
1
30
15
13
5
27%
Moderate Risk 31/05/2018
88
6
3
1
PROT4
20
34
20
4
7%
Moderate Risk 30/06/2018
315
28
3
6
57
36
83
102
9%
Moderate Risk
Total
704
139
7
8
158
0
105
154
133
20%
Low Risk 31/01/2018
14
13
A risk acceptance is in place for until YE 2022
1
93%
Low Risk 28/02/2018
29
19
PROT5
2
8
66%
Low Risk 31/03/2018
117
37
2
1
9
47
11
10
32%
Low Risk 30/04/2018
161
35
1
20
84
18
3
22%
Low Risk 31/05/2018
139
13
2
29
76
17
2
9%
Low Risk 30/06/2018
161
42
3
1
PROT6
16
87
10
2
26%
Low Risk
Total
621
159
5
5
74
0
297
64
17
26%
Total 1671
506
59
12
17
237
19
432
263
185
30%
PROT7
Program Status - Q3 (as of 6-8-2018 - based on the smooth-out schedule)
Total Approved Overdue Primary Officer
MD
ABR
AFC
Not Yet Started In Progress Rejected Approved High Risk
31/07/2018
55
9
Not yet due
2
[repeated 3 times]
23
6
11
16%
High Risk 31/08/2018
148
10
Not yet due
1
1
109
23
4
7%
High Risk 30/09/2018
87
13
Not yet due
1
1
2
52
14
4
PROT8
15%
High Risk
Total
290
32
4
1
2
5
184
43
19
11%
Moderate Risk 31/07/2018
120
1
2
1
105
8
3
1%
Moderate Risk 31/08/2018
111
2
1
87
20
1
0%
Moderate Risk 30/09/2018
126
6
104
16
PROT9
5%
Moderate Risk
Total
357
7
4
2
296
44
4
2%
Low Risk 31/07/2018
133
2
1
120
10
2%
Low Risk 31/08/2018
156
2
152
2
1%
Low Risk 30/09/2018
138
4
128
6
PROT10
3%
Low Risk
Total
427
8
1
400
18
2%
Total 1074
47
258
8
1
5
5
880
105
23
4%
PROT11
Appendix
PROT12
Approach, Risk Acceptance, Reporting
KYC Schedule
WM Americas applied a "Smooth-out" approach for remediating clients (back
book) and performing regular reviews
This approach "smooths out" the # of clients to KYC per month per banker
including grouping relationships together, where feasible while also accounting for consistent volumes for quality assurance and approval
functions
Allows for proactive resource / staff planning / optimization given load
balancing KYC volumes (per banker) across the calendar year and identification of the annual KYC population in advance of the calendar year
Note: As a majority of 2017 regular reviews were performed in Q4, the 2017
KYC approval date was not used as the basis for the next review date in the
smooth-out (i.e., this would have resulted in a large number of reviews to
be performed in Q4 2018) Risk Acceptance
A Risk Acceptance was formally put in place on 29 March 2018 to bring US
KYCs to Policy standard as WM Americas has operated under a regional policy
since 2009. It was concluded that the best way to proceed is to ensure that
the highest risks are addressed first, as resources and technology solutions
are enhanced to make the high volume of work sustainable.
High Risk to be completed on an annual basis - 2017 High Risk back book
remediation done by March 2018 (as communicated in the PWCC KYC SteerCo)
Medium Risk to be completed by end of 2019
Low Risk to be completed over a 5-year period (through 2022)
Reporting
WM Americas KYC Remediation Program is to be based on the due dates defined
in the smooth-out schedule and as such it is understood that their may be
instances where the performance of regular review may go over a policy
deadline as necessary to established a sustainable BAU regular review
schedule .
PROT13
Smooth out schedule
Total'18
Jan
Feb
March April
May
June July
Aug
Sept
Oct
Nov
Dec
High Risk 1019
73
65
50
47
79
88
49
148
87
127
105
101
Moderate Risk 1421
43
72
98
88
88
315
120
111
126
115
113
132
Low Risk 1467
14
29
117
161
139
161
133
PROT14
156
138
160
139
120
Total 3907
130
166
265
296
306
564
302
415
351
402
357
325
2018 Periodic KYC plan based on existing Risk Acceptance
PROT15
PROT16
1_ Office Theme Confidential Confidential
PROT17
2 DB Deutsche Bank Wealth Management Confidential Confidential
PROT18
3 DB Deutsche Bank Confidential Confidential
PROT19
7 DB Deutsche Bank Confidential Confidential
PROT20
8 DB Deutsche Bank Confidential Confidential
PROT21
9 DB Deutsche Bank Confidential Confidential
PROT22
13 DB Deutsche Bank Confidential Confidential
PROT23
14 DB Deutsche Bank Confidential Confidential
PROT24
15 DB Deutsche Bank Confidential Confidential
PROT25
2 DB WM Template slides Deutsche Bank Confidential
Confidential
PROT26
17 DB Deutsche Bank Confidential Confidential
PROT27
1 lfffbed9-35dc-4496-aba8-4dd4c4c4cael Deutsche Bank
Confidential Confidential
PROT28
5 DB Deutsche Bank Confidential Confidential
PROT29
16 DB Deutsche Bank Confidential Confidential
PROT30
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