Standard Chartered and HSBC have launched a fresh round of hiring for their compliance functions in the UAE and wider Middle East, as the banks seek to increase their capacity to identify potential money laundering and sanctions-busting activity under pressure from US regulators.
StanChart is hiring a head of sanctions for the Middle East, North Africa and Pakistan to ensure the bank’s work complies with sanctions requirements, as well as a regional head of learning and training within financial crime compliance, and other staff within compliance, according to postings on LinkedIn.
HSBC meanwhile launched a search this week on LinkedIn for a series of positions related to compliance and money laundering in Dubai, including a senior regulatory compliance manager based in its offices in Emaar Square. The bank is understood to also be recruiting in the wider region.
A spokesman for StanChart told Reuters it continued to build on its investments in legal and regulatory capabilities. “We have a significant programme of work under way to enhance our capabilities, systems and controls around financial crime,” he said.
An HSBC spokeswoman declined to comment on the new hires in the Middle East. The bank had brought on more than 2,200 compliance employees globally during the first half of the year.
StanChart last month announced the appointment of several high-profile compliance recruits in London, New York and Dubai, including Carmel Speers as its new Dubai-based head of financial crime compliance for the Middle East, North Africa and Pakistan.
The new hires follow the departure of staff from other parts of StanChart’s business in the region earlier this year. Viswanathan Shankar, chief executive of Europe, Middle East, Africa and Americas, resigned, while Christos Papadopoulos will stand down this month from his position as regional chief executive of the Middle East, North Africa and Pakistan.
“Such increases in staff are almost certainly reactive in nature, in the wake of what the banks have gone through with authorities,” said a UAE-based compliance specialist, who asked not to be named.
StanChart has had a tough time with US and New York authorities since being fined three years ago for sanctions-related violations. Deferred prosecution agreements from the 2012 deals remain in effect, and US prosecutors are still investigating potential violations.
HSBC agreed in December 2012 to pay US$1.9 billion in fines to US authorities, after authorities accused the bank of failing to maintain effective anti-money laundering controls and violating sanctions law.
The Sunday Times reported last month that the US justice department is investigating allegations that StanChart’s Dubai office employed a team of fluent Farsi speakers in the emirate between 2009 and 2011, who were allegedly tasked with drumming up business with Iranian clients.
The justice department said in June that HSBC’s procedures to prevent money laundering and sanctions-breaking still had serious deficiencies.* with additional reporting by Reuters
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Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
