Financial Sector and Payment Systems Programmes

FSMP 01-R: Regional Course on Banking Supervision and Resolution Level I

Date: March 2 - 13, 2020
Duration: 10 days
Venue: Lagos, Nigeria

Introduction

Bank failure could result in the loss of investments by depositors, thereby putting the much needed confidence in banks at risk. There may also be a disruption of the payment system, with spill-over effects to other banks, financial institutions and markets as well as the entire economy. Thus, there is the risk of bank failure snowballing into contagion or a run on other banks if it goes unchecked. To avoid systemic risk and ensure sound, stable and healthy banking/financial system, it is important to equip banking supervisors not only with the tools but also update their knowledge to be in line with current development/challenges in the banking/financial sector.

Given the complexities in the banking sector and the significant role it continues to play in the developmental process of our economies, it is important for bank supervisors to be continuously trained to possess the needed know-how to steady the growth of the banking system. Sound banking principles and supervisory techniques interfaced with legal framework to handle banking crisis and its resolution require continuous upscaling of knowledge of bank supervisors. Accordingly, there is an urgent need for a well guided risk management process in the banking system to ensure good corporate governance and best practices.

Objective

The objective of the course is to enhance participants knowledge in banking supervision to enable them to effectively and efficiently perform their duties as bank supervisors. Specifically, the course will provide the participants with indepth knowledge of the techniques of supervision, bank licensing and preventive measures needed to avoid bank failures.

Broad Themes

The following are the themes to be covered:

  • • Bank licensing process
  • • Bank failure: causes, prevention and resolution
  • • Capital and capital verification
  • • Consolidated supervision
  • • Forex operations and forex examination process
  • • Bank accounting
  • • Financial statement analysis
  • • Bank investment and liquidity management
  • • On-site examination process
  • • Off-site examination process
  • • Fraud and forgeries
  • • Corporate government principles
  • • Money laundering, financial crime
  • • Framework for prompt corrective action and
  • • International Financial Reporting Standards (IFRS) principles.

Who May Attend

The course is targeted at junior/middle level staff of central banks, policy-making ministries, deposit money banks, audit firms and other supervisory agencies in the financial sector with basic experience in bank examination, as well as supervision of banks and non-bank financial institutions.

FSMP 02-R: Regional Course on Cyber Security, Digital/Crypto Currencies

Date: March 30 - April 3, 2020
Duration: 5 Days
Venue: Accra, Ghana

Introduction

Cyber threats in the financial services industry can have wide-ranging consequences, not just to organizations under attack, but to the economic health of entire nations. The next evolution in cybersecurity requires cutting edge technology, vigilant people, and innovative processes, to articulate cybersecurity baselines, identify gaps, develop strategic road maps, and support program execution to promote a proactive posture. Financial services organizations possess a gamut of critical data and information supporting the financial health of a host of customers of various types. On a daily basis, the average financial services company handles thousands of complex and critical transactions processed through mammoth data centres and numerous third-party vendors, such as cloud platforms and servers. Banking institutions have also deployed payments system channels, such as RTGS, ATMs, Point of Sale Terminals, internet banking, use of Credit and Debit cards etc. Thus, the financial services industry is a prime target of cyber criminals.

Therefore, financial services firms must be able to demonstrate to their customers and other stakeholders that they have adequate cyber defenses and associated controls and governance, while remaining competitive and able to conduct business efficiently.

Objective of the Course

The overall aim of this course is to expose participants to the threats posed by cyber-crimes to organizations and measures to mitigate these threats. Specifically, the objectives are as follows:

  • • Discuss cybersecurity concepts, themes, etc., and explain the typical objectives cybersecurity programs seek to achieve.
  • • Identify typical goals and success criteria of cybersecurity policy frameworks/Strategy, and the accountability and responsibility of national/corporate leadership therein.
  • • Evaluate different approaches for securing complex computer networks, and discuss the risks and threat prevention measures, in the different layers of services in the financial service industry.
  • • Define cybersecurity assurance and monitoring measures, and discuss the approaches to promote compliance, using performance metrics.
  • • Equip participants with knowledge of the key concepts and procedures required for the detection and prevention of such crimes.
Broad Themes
  • • Overview of cyber-security concepts and drivers in the financial services industry
  • • The rapidly developing scope and nature of the threats to cyber-security
  • • Steps to conducting an industry-wide risk assessment
  • • The role of the regulator in relation to cyber-security and crypto currencies
  • • What constitutes compliance for firms in the industry
  • • Legal initiatives relating to cyber-security and cybercrimes
  • • Best practice cyber-security frameworks and strategies
  • • Establishing effective mechanisms for sharing intelligence for cybercrimes prevention and learning lessons on cyber incidents across the financial services industry
  • • Reliance on critical information infrastructure in the financial services industry in the event of a cyber-attack or multiple cyber-attacks and
  • • Cyber-security issues in the provision of
  • o Crypto Currencies
    o Electronic banking services
    o Mobile financial services
    o Cheque truncation services
    o Online stock trading services through the central security clearing system
    o Future outlook: cyber-security and the financial services industry.
Who May Attend

The course is targeted at senior/middle level officials of central banks, financial regulatory/supervisory staff and agencies, deposit money banks, core economic and finance ministries and other financial institutions.

FSMP 03- R:        Regional Course on FinTech, Artificial Intelligence (AI), Disruptive Technologies

Date: April 20 - 24, 2020
Duration: 5 Days
Venue: Freetown, Sierra Leone

Introduction

The financial industry has embarked on harnessing technology to its advantage, through the adoption of sophisticated financial innovations that enable the execution of transactions without human intervention. Some of the innovations are characterized by the melding of financial products and services (finance) and technology, to become what is known as FinTech solutions. This resulted in technology that facilitates the generation and distribution of products and services in a manner that gradually alters the way consumers interact with financial institutions. For instance, banking in some cases requires no physical presence of the customer, but rather executed through online access or through virtual banking. In effect, FinTech products and services offer increasingly innovative solutions to the altered consumer habits. Consequently, some conventional banks have established cooperation with FinTech partners in the interest of gaining the ability to meet the expectations of a growing number of existing and potential users, in keeping with the appropriate quality standards. Financial technology (FinTech) is complemented by artificial intelligence (AI), and most importantly, machine learning (ML), which provides a platform for analysis of complicated data and use of algorithms in executing complex financial transactions. Machine Learning is the branch of artificial intelligence (AI) that systematically applies algorithms to synthesize the underlying relationships among data and information. For example, ML systems can be configured for automatic speech recognition systems, (such as iPhone’s Siri), or algorithms in stock exchanges. It has already received widespread application in web search, high frequency trading in stock market operations, weather forecasting, big data analytics etc. The above innovations are generally considered disruptive technologies, due to their ability to alter the way consumers, industries, and businesses operate, by replacing human intervention with automated and more efficient procedures.

Objective

The overall aim of this course is to introduce participants to the concepts of AI and FinTech and their application in the financial industry. Specific objectives are as follows:

  • • Understanding the concepts of FinTech, AI
  • • Determine the current application of technology in our financial systems
  • • Explore the various methods of adoption of FinTech and AI, as well as cost implications
  • • Equip participants with knowledge of the key concepts and procedures required for melding technology and finance for the benefit of consumers.
  • • Sensitize participants on the need to share the knowledge gained with key personnel of their institutions, with a view to encouraging the harnessing of technology in the financial industry as appropriate.

Broad Themes

The broad themes to be covered at the course include: • Overview of FinTech and its applications; • Introduction to AI and ML; • Types of products and services delivered through FinTech, including: o Crypto currency; o Block chain technology; o Electronic payment services; o Mobile financial services; o Cheque processing services; • Types of products and services delivered through AI and ML, including: o Big data analytics; o High frequency stock trading services; o algorithms in executing complex financial transactions; • Technological challenges in Africa inhibiting adoption of disruptive technologies; • Licensing challenges in FinTech and AI oriented products and services; • The issue of big data and advanced analytics through AI and ML; • The role of the regulator in relation to FinTech, AI and ML; • FinTech and AI in relation to the future of the financial industry; • Inter-operability of modern payment systems infrastructure, challenges and the way forward; • Legal initiatives relating to FinTech, AI and ML; and • Challenges of supervision of disruptive technologies (FinTech, AI) in the financial industry.

Who May Attend

The course is targeted at senior/middle level officials of central banks, financial regulatory/supervisory staff and agencies, deposit money banks, core economic and finance ministries and other financial institutions.

FSMP 04-R: Regional Course on Combating Money Laundering and other Financial Crimes

Date: May 4 - 8, 2020
Duration: 5 Days
Venue: Banjul, The Gambia

Introduction

The integrity of the banking and financial services sector depends on the perception that it functions within a framework of high legal, professional and ethical standards. Within the West African sub-region, there has been growing concern about the dangers associated with money laundering and other financial crimes to the stability, growth and integrity of the financial system. Generally, money laundering is the processing of criminal proceeds to disguise their illegal origin. It is a derivative crime from predicate offences like illicit trafficking in narcotics and human beings, corruption, kidnapping, prostitution, illegal mining and other nefarious activities as well as financial crimes such as foreign exchange malpractices, bank and tax frauds, etc. All these impact negatively on the health and stability of the financial system.

Money laundering and financial crimes are global in nature and because of the interconnectedness of such crimes, national measures often achieve limited success. Thus, concerted efforts are needed through global, regional and national linkages as well as inter-agency collaboration within these various layers to combat money laundering and other financial crimes. Apart from intelligence gathering there is urgent need to strengthen and sustain capacity building of the various agencies involved in tackling this organized crime.

Objectives

The course intends to develop critical skills in tracking money laundering and financial crimes perpetrated through the financial system in the sub-region.

The specific objectives include the following:
  • • To enable participants understand the concept and techniques of money laundering
  • • To enhance the knowledge of participants in AML/CFT supervision and compliance and
  • • To expose participants to current developments and trends in global initiatives to combat money laundering and other financial crimes.
Broad Themes
The following broad themes will be covered:
  • • Overview of money laundering, economic and other financial crimes (Definitions, Stages, Types, etc)
  • • Effects of money laundering on the financial system
  • • Enhancing the role of FIUs and other structures for effective AML/CFT Regimes
  • • Procedures, monitoring tools and investigative techniques for combating money laundering
  • • Combating Advance fee Fraud (aka 419): Lessons from Nigeria
  • • International/Regional Initiatives: The Revised FATF Standards-Implication for robust AML/CFT Regime in West Africa
  • • Financial Crimes and the production of fraudulent documents (Identity theft, Credit Cards, Visa and Passports, Counterfeit crimes, etc)
  • • Risk Based Approach in Implementing AML/CFT programmes
  • • New challenges in AML Supervision
  • • Designing AML Compliance Systems for enforcement in Financial Institutions and
  • • Customer Due Diligence: The Link to Robust AML/CFT Framework.
Who May Attend

The course is targeted at senior/middle level officials of central banks, deposit money banks, parliaments, core economic ministries, mass media, security agencies and other institutions responsible for ensuring compliance with anti-money laundering and combating the financing of terrorism (AML/CFT).

FSMP 05-R: Regional Course on Reserves and Foreign Exchange Management

Date: June 15 - 19, 2020
Duration: 5 days
Venue: Monrovia, Liberia

Introduction

Foreign exchange markets in the West African sub-region generally lag behind global trends in terms of execution and settlement of transactions. This is despite the growth of the international trade and settlements of foreign exchange transactions among countries. The need for efficient management of foreign exchange and foreign reserves is imperative within the context of efforts to evolve greater prudence and efficiency in the management of public and corporate finances.

In addition to its traditional role of facilitating international trade finance and the exchange of goods and services among nations, effective and active management of reserves and foreign exchange is increasingly being used as a tool for sustainable revenue generation by central banks, commercial banks and other players in the financial system. The realization of the revenue generating potential and the consequent professionalization of the foreign exchange and reserves management functions have resulted in the development of special tools and techniques applicable to the trade. A firm grasp of these tools and techniques by foreign exchange dealers and reserve managers is essential to acquiring a competitive edge in this global environment.

Objectives of the Course

The course is designed to acquaint participants with critical skills required to effectively play their roles in treasury/foreign reserves management. Specifically, the course is meant to:

  • • improve understanding and enhance the skills of participants in analyzing foreign exchange market information
  • • improve their ability to develop and review portfolio management strategy
  • • sharpen their analytical skills and operating techniques in managing foreign exchange and reserves and
  • • increase their ability to make decisions on which specific instruments to use, when and how.
Broad Themes
The following broad themes will be covered:
  • • Overview of Reserves Management
  • • Foreign Exchange Markets and Products
  • • Reserves Pooling Mechanisms (Regional Perspective)
  • • Investment Portfolio Management
  • • Liquidity Analysis and Reserves Tranching
  • • Technical and Fundamental Analysis in Reserves Management
  • • Monitoring of Exchange Market Information and Market Movements
  • • Reserves Investment Markets and Instruments (Derivatives: Swaps, Options, etc.)
  • • Risk in Portfolio Management and Risk Management Framework
  • • International Reserves Management Accounting
  • • Approved Currencies as Stock of Reserves
  • • Control of Expenditure as a Reserve Management Tool and
  • • Reserve Placements and Corresponding Banking Relationships.
Who May Attend

Middle/executive level officials of central banks, financial regulatory agencies, deposit money banks, core economic ministries and other financial institutions involved in treasury or reserves management functions or regulation from the constituent countries of the West African Institute for Financial and Economic Management (WAIFEM).