Tom Perry: “A well-regulated industry adds to the investment attractiveness”

Money laundering is becoming a worldwide phenomenon. Mauritius continues to play a strategic role as a fully complaint international centre. In a recent visit to Mauritius in the context of a partnership of the International Compliance Association (ICA) with the Temple Professional, Tom Perry, Senior Manager, International Compliance Association, in this exclusive interview talks about the importance of compliance to regulate this sector as well as elaborates on the scope of employment.

What can we expect from the partnership of the International Compliance Association (ICA) with the Temple Professional?
ICA and Temple Professionals are collaborating to bring international compliance qualifications to Mauritus. ICA qualifications are the global benchmark of excellence in the fields of anti-money laundering, governance, risk and compliance and financial crime prevention. These will begin with a Certificate in Financial Crime Compliance and an Advanced Certificate in Anti-Money Laundering.  ICA courses are designed to empower you to think more, perform better and excel in your field. Temple Professionals will ensure individuals have a great experience by studying these courses, right here in Mauritius.

Financial crime and money laundering are always the buzzwords. Why is it so? 
Money laundering comes under the wider heading of financial crime but is a significant enough problem to warrant particular attention but if I interpret the question more widely to mean why do we concentrate on money laundering e.g. rather than fraud, that is a question you would have to pose to regulators and governments that set the priorities.

Financial crime is a wide concept  covering everything from credit card fraud to tax evasion, with laundering playing into these wider activities but the terms are familiar.  Especially money laundering.  The concept of money laundering is not new, which is perhaps why you refer to it as a ‘buzzword’ but the important thing for people, especially those involved in financial services and related industries, to understand is that methodologies evolve and as technology evolves, so do the ways in which financial, or economic, crime can be committed.  Think about crypto assets and the opportunities these afford organised criminality.  The term ‘money’ laundering is a misnomer as ‘assets’ can be laundered, so it would be good to get away from some of the buzzwords and challenge conventional thinking about what some of these terms actually mean which what ICA qualifications try to do. 

What are the ways to counter money laundering?
That is a very wide question with input required from policy makers at Government level, law enforcement, the regulated sector and individual actors but my high level response would be first top level from Government to legislate against ML and provide law enforcement with the tools and resources to target organised criminality and engage in a campaign of disruption. Second, willingness of law enforcement to proactively engage with industry stakeholders to discuss the issues in a constructive, collaborative way. Third, regulated firms and DNFSBs to properly resource the compliance function and invest in and develop robust systems and controls, which incudes the training and education of employees at all levels. Fourth, a tacit understanding by regulators that there is no such thing as a ‘zero failure’ regime, with a balanced approach to enforcement and supervision. After that, you get into specific controls and law enforcement powers, just to name a few.  

It is possibly inaccurate to say that offshore companies are targeted for nefarious purposes as they are often set up to facilitate criminal activity and I think more could be done here but it takes the willingness of these jurisdictions to engage with global efforts.”

Many offshore companies are being constantly targeted for malpractices. What are your views on this matter?
It is possibly inaccurate to say that offshore companies are targeted for nefarious purposes as they are often set up to facilitate criminal activity and I think more could be done here but it takes the willingness of these jurisdictions to engage with global efforts.  We have already seen the UK Crown Territories pushing back against the UK Government in respect of implementing registers of beneficial owners to increase transparency!  Where you have a jurisdiction that has built an economy around offering secrecy and, and at worst, being complicit in criminal enterprise, they are not going to change over night and will continue to attract bad actors. 

I would say though, that the problem does not lie solely in offshore companies and would invite readers to look at the benefits of incorporating a company in Delaware, USA or review the shortcomings of UK Companies House and the role English and Scottish incorporated entities have played in for instance, the Global Laundromat so, again, understanding the wider issues are key and sometimes we need to look closer to home to fully appreciate the nature and scale of the problem. 

Can you explain the relevance of compliance in today’s financial services sector?
Because financial services belong to a heavily regulated industry, and all firms operating in the industry must meet the same requirements, whichever firms manage these regulatory requirements the most effectively give their firms a source of competitive advantage.  And on the international stage, the same can be said for countries competing with each other for international investment.  A well-regulated industry adds to the investment attractiveness.

Are professionals trained accordingly to recognise and address the issues linked to compliance?
Absolutely! Managing compliance effectively allows the business to focus upon their strategic and commercial objectives.  These must be achieved within the regulatory requirements, so the ICA trains compliance professionals to manage compliance related issues in a way that is positively supporting the business.

What are the scopes of employment for youngsters who wish to pursue a career in compliance?
The best way to begin a new career in compliance is a mixture of work experience, professional qualifications and networking. One of the benefits of obtaining an ICA qualification is having that edge over other candidates at interview, indeed it might be the deciding factor in securing that interview.  However, if you are also able to demonstrate experience, not even necessarily already within a compliance department but within an environment where you have gained the necessary skillset of analysis and interpretation of complex information, attention to detail and effective communication, then this will also go a long way in your pursuit of a compliance career. And finally, as well as keeping abreast of industry news and developments, also take the time find out about any compliance related events– many are free – where you can meet people already working in the field, network, demonstrate your communication skills and potentially get the inside track on any upcoming compliance vacancies.