Page 19 - NIBAF-Training Matters January - June 2023

NIBAF Islamabad
Training Programs
for Financial Institutions
Understanding National Risk
Assessment (NRA) and Applying
a Risk-Based Approach
The NRA under the FATF recome- placed in AML/CFT related positions.
mendations require identify, assess
and understand the Money Laun-
dering/Terrorist Financing (ML/TF)
risks they face before the FATF
conducts a Mutual Evaluation. This
Mutual Evaluation process then
assesses countries for their techni- regulatory framework of the coun- FE Manual, exporter registration
cal compliance with the 40 FATF
Recommendations — international
AML/CFT standards — and their
effective implementation of
AML/CFT measures in line with 11
Immediate Outcomes.
Owing to the national importance
of this assessment and to sensitize
respective professionals to obliga- encouraging feedback on the
tions and significance of their role
in the process, NIBAF developed a
training program on this topic with
facilitation of Mr. Sohail Khan, Joint
Director, SBP. Mr. Sohail is a Certi-
fied FATF/APG Mutual Assessor. As
part of the banking sector supervi-
sory team at SBP, he has contribut-
ed to FATF’s/APG’s engagements
with Pakistan and has also
remained part of the working
groups developed for carrying out
Pakistan’s National ML/TF risk
assessments. The trainer has a vast
experience in assessing ML/TF risks
of regulated sectors and supervis-
ing their preventive measures.
19
SBP strongly advocates a continu- quences of violating the rules can
ous learning environment and
instructs banks to implement a
comprehensive training and devel- The compliance trainings, however,
opment policy to enhance the
overall capacity of their employees.
In compliance to these instructions,
banks have formalized their train- changes and also effectively com- duction of hi-tech core banking
ing & development function and
frequently collaborate with NIBAF
for support in designing training
programs including short
programs as well as certificate
program for different functional
areas and hierarchies.
Over the last six months, NIBAF
engaged with HBL, Bank AL Habib
and the Bank of Punjab to develop
various customized programs
which were conducted at NIBAF
campuses as well as the respective
banks’ training academies under
the guidance of Mr. Shahid Iqbal,
Subject Specialist, NIBAF.
Brief overview of the programs is as
below:
Compliance Staff Development
Program
Organizations have plenty of risks
to manage making compliance
trainings an essential and worth- Karachi. Panel of trainers from
while investment; but for heavily
regulated industries, benefits of a
well-designed compliance training
program are even more
pronounced as the potential conse- Compliance and SBP regulations.
Opening and maintenance of Twenty-six
Special Foreign Currency
Accounts to facilitate the IT based
exporters/ freelancers
SBP has advised all the Authorized
Dealers in Foreign Currency to
provide proper training to relevant
staff of all foreign exchange dealing
branches to ensure facilitation to
the IT based exporters/ freelancers
for the purpose of Opening and
Maintenance of Special Foreign
Currency Accounts.
In order to support compliance to
the said instructions, NIBAF engaged
with the authorized dealers to
develop trainings for their staff on
relevant regulations in the matter.
Positive feedback from several banks
was received after which NIBAF
organized an online training on
February 20, 2023. The training was
conducted by a seasoned banking
industry professional Mr. Iftikhar
The course was conducted on Janu- Sayeed, Head CPU Remittance Cell,
ary 24, 2023 at NIBAF Karachi and Summit Bank Limited. The trainer
was designed for entry level to discussed instruction on the
mid-career professionals who were Exporters Special Foreign Currency
Account (SFCA), discussion on terms
The course provided a broad of facilitation to exporters , due
perspective on identification and diligence and monitoring require-
assessment of ML/TF risks at the ments , permissible utilization of
national level and how these risks funds in the exporters SFCA, com-
are expected to be analyzed and parison of existing facilities with
mitigated through the legal and respective amendments under the
try at the level of the FIs. The course with Pakistan Software Export
emphasized adopting a risk-based Board (PSEB) or Pakistan Software
approach to countering ML/TF risks Houses Association, instructions for
for deploying optimal resource freelancers, export of software,
allocation and resolve most press- Information Technology (IT) services,
ing ML/TF risks and issues. The IT Enabled Services (ITeS), monthly
program was attended by relevant reporting of export of software on
participants from commercial the prescribed format, reporting
banks and SBP. Participants shared mechanism in Monthly Foreign
Exchange Returns according to the
programs and expressed the need nature and purpose of transactions
to conduct similar programs on a to avoid errors and ommissions in
regular basis for the industry. regulatory reporting.
Training Matters | January-June 2023
Branch Manager Certification
be significant. Program (BMCP)
Ever increasing complexity of rules
can often be quite daunting especially that govern banking and digital
for compliance officers who must transformation led by innovation in
remain up-to-date on the regulatory service delivery channels and intro-
municate them to the rest of the solutions has fundamentally changed
organization. In view of the specific the role of a bank branch. Customer
requirements of institutions and to expectations and engagement
ensure the trainings meet the landscape has also made the role of
particular requirement of specific the Branch Manager critical in
compliance teams, NIBAF in coordi- ensuring significant efforts to
nation with relevant stakeholders maintain prominence and reputa-
including SBP, FMU, NAB and FBR tion in the market place and
has developed a comprehensive achieve profitable growth. This
body of knowledge on regulatory expansion in the role and expecta-
compliance that focuses on today’s tion from Branch Managers neces-
top risks for the banking industry. sitate a comprehensive and
The developed content is delivered well-structured capacity building
through rich discussions with program that balances the required
seasoned experts and practitioners technical skills with soft skills.
in the field with frequent references
to industry best practices, real cases In this backdrop, NIBAF in collaboration
of compliance failures and associated with Bank AL Habib, designed the
liabilities faced by FIs as well as cases Branch Manager Certification Program
leading to complex investigations (BMCP) to impart the essential
and regulatory/criminal penalties. business acumen and competencies
for customer-centric service delivery
NIBAF conducted three one-day to effectively serve the evolving
programs for 135 officers of HBL customer needs through the branch
team from January 24-26, 2023 at network. BMCP aims to equip the
their training academy located in participant with the tools to
optimize the bank’s service culture
NIBAF, FMU and covered a range of and drive process improvements,
important topics in the compliance implement management informa-
area including Anti-Money Laundering tion systems with key performance
and Anti-Terrorism Act, Sanction indicators to maximize branch
productivity, and grow and retain
frontline staff for a competitive and
sustainable advantage.
Besides the presentations and
discussions with industry experts,
the program also features outbound
team building activities to help
participants apply their strategic
planning skills as part of a team. The
training program also includes daily
quizzes and previous-day group
synopsis by the participants and a
comprehensive one-hour exam. At
the end group presentations were
also delivered by participants on
the last day and adjudicated by an
expert panel.
This two-week residential program was
conducted from March 6-18, 2023 at
participants from and have robust disaster recovery
various commercial banks attended
the training. The feedback given by
them was very encouraging and
Some
positive.
banks
have
approached NIBAF for customized
trainings in view of the latest devel- nation of the outsourcing arrange- promoting financial inclusion and
opments in the area.
SBP’s Framework on Outsourcing
to Cloud Service Providers
The increasing demand for digital
transformation and agility in the
modern business landscape has led
to a surge in the adoption of cloud
computing. Cloud services offer a
range of benefits such as cost-ef-
fectiveness, scalability, and flexibili- looking to leverage cloud services
ty, making them an attractive
option for organizations of all sizes.
However, outsourcing to cloud
service providers also presents
certain challenges, such as security
risks, vendor lock-in, and lack of
control over infrastructure. To help
organizations navigate the com-
plexities of cloud outsourcing, SBP
has developed a comprehensive
framework for outsourcing to Cloud
Service Providers(CSPs). This frame- lar emphasis on the SBP framework
work aims to provide guidance to
financial institutions on the best
practices for outsourcing to cloud
providers while ensuring that orga- standing and clarify any doubts
nizations comply with regulatory
requirements and manage associ-
ated risks.
The SBP framework covers all
aspects of cloud outsourcing,
including risk management, vendor
selection, contract negotiation, provided valuable insights into
service-level agreements, data
protection, and regulatory compliance.
It emphasizes the need for due
diligence in selecting cloud service
providers, ensuring that they meet
security and compliance standards,
NIBAF-Islamabad and attended by
46 Branch Managers from different
branches of Bank AL Habib located
in different regions of the country.
A shorter version of the BMCP was
customized for the branch managers
of the Bank of Punjab. This program
comprised of five days and also
focused on technical and soft skill
development with the support of
outbound exercises. The first iteration
of the certification was conducted
at NIBAF Lahore from June 05-09,
2023 with the participation of 46
branch managers from Lahore
Region. The program was a blend of
both technical and soft skills modules
including an outbound exercise.
People Management Program
(PMP)
Managing people is one of the most
critical traits for managers as well as
the differentiating factor between a
good and an average manager. The
PMP has been designed to enlight-
en participants on leadership styles,
build people management practic-
es to enable managers productively
interact and lead the teams to
achieve the desired performance
benchmarks, and to enable current
and aspiring leaders improve work-
place communication to build trusting
relationships with the fellow
colleagues. Activity-based demon-
strations and practical tools are
applied to practice skills including
communication, building trusting
relationships, receiving and giving
constructive feedback and solving
complex problems. The program
also includes outbound training
components to enhance leadership
and team performance through
experiential learning, outdoor
adventures and group activities.
SBP’s Licensing and Regulatory
and business continuity plans in place. Framework for Digital Banks
The framework also emphasizes
the need for a well-defined exit SBP has recently introduced a
framework for digital banks in the
strategy and contingency plan in
case of service disruption or termi- country. This framework is aimed at
ment. It encourages organizations innovation in the Pakistani banking
to maintain control over their data industry by enabling digital banks
and ensure that it is protected to operate in the country and
throughout the outsourcing lifecy- outlines regulatory requirements
cle. Overall, the SBP framework and guidelines that digital banks
provides a structured approach to must follow in order to obtain a
outsourcing to cloud service provid- license to operate in Pakistan. These
ers that can help organizations requirements broadly include
make informed decisions and capital requirements, corporate
manage associated risks. It can serve structure, governance, risk man-
as a useful reference for organizations agement, technology infrastruc-
ture, & customer protection. By
while ensuring compliance and risk introducing this framework, SBP
management. aims to encourage the growth of
the digital banking sector in Paki-
In order to create further awareness stan, while ensuring that digital
and build capacity of financial banks operate in a safe and sound
institutions in the area of outsourc- manner, and that customer inter-
ing to CSPs, NIBAF organized a two ests are protected. This is expected
days online session during February to increase access to financial
21-22, 2023. The two-day session services, particularly for the
covered a range of topics related to unbanked and underbanked popu-
outsourcing to CSPs, with a particu- lations in the country, and promote
financial inclusion and economic
for outsourcing. Participants were growth.
able to engage in extensive Q&A
sessions to deepen their under- In this backdrop, NIBAF conducted
a training session on the "SBP's
they had. Some of the key topics Licensing and Regulatory Frame-
covered in the session included work for Digital Banks" on February
cloud computing and its bene- 28, 2023. Mr. Nadeem, Joint Direc-
tor, Banking Policy and Regulations
Department, SBP delivered the
session. The training session aimed
to provide a comprehensive under-
standing of the regulatory require-
ments for digital banks in Pakistan
including their licensing process
and other regulatory requirements.
Mr. Nadeem, in his presentation,
highlighted the key aspects of the
licensing and regulatory framework
for digital banks in Pakistan. He
explained the minimum capital
requirement, fit and proper criteria
for directors and senior manage-
ment, and the need for an effective
risk management framework. He
fits/risks, virtual tour of Google also emphasized the importance of
Cloud and overview of the SBP complying with regulations related
framework. Overall, the session to anti-money laundering and com-
bating the financing of terrorism
outsourcing to CSPs and the steps (AML/CFT). In addition to regulatory
that financial institutions can take requirements, Mr. Nadeem also
to mitigate risks and ensure compli- provided insights on the operation-
ance with regulatory requirements. al aspects of digital banks. He
talked about the customer due
diligence process, transaction mon-
Because of its focus on activity-based Management Trainee Officers
learning techniques, NIBAF's PMP Program
is becoming popular with participants
and HR executives of banks. Partici- NIBAF has designed a one-month
pants learn through watching training program for the newly
after-class films in training rooms, inducted employees Management
participating in competitive indoor Trainee Officers (MTOs) of Pak China
activities and playing outdoor Investment Company Limited (PCICL).
games. Among the indoor activities This residential training program
are the box tower building exercises, that commenced from May 02, 2023
rolling ball communication exercises and concluded on June 01, 2023 is a
and blindfold Jenga Tower games. talent nourishing program that
Outside activities include a paint- offers young graduates a chance to
ball-based activity called "Art of War realize their career aspirations, gain
for Managers" in which three teams exposure & experience to meet the
compete in a war-like situation using future needs with skills and exper-
paintball guns and equipment at tise required for the company. This
carefully selected locations. Three program precedes the in-house
iterations of the program, two in training at PCICL and aims to build
professional and soft skills to enable
the incumbents prepare for
challenges at workplace.
The program has been designed to
allow participants the opportunity
to interact with seasoned subject
matter experts from central banks,
commercial banks and other
institutions. The learning experi-
ence covered different topics rang-
ing from Pakistan economy, finan-
cial sector overview, central bank-
ing & monetary policy, financial
statement analysis, credit & trade
operations, security documenta-
tion, aml and prudential regula-
February-2023 and one in May-2023, tions, corporate governance and
have been conducted in NIBAF control functions of banks.
Islamabad over the six months which
were attended by middle to senior Beside the functional areas, soft
management of Bank AL Habib skills development trainings com-
from across Pakistan. prising of important organizational
skills including communication,
public speaking, team building and
sensitization to workplace harass-
ment sessions were also included in
the training program. Key speakers
itoring, and cybersecurity measures
that digital banks need to imple-
ment to ensure safe and secure
operations.
The session was attended by repre-
sentatives from various banks,
fintech companies, SBP and other
stakeholders in the financial sector.
The training session was highly
informative and interactive, and
participants had the opportunity to
ask questions and seek clarifica-
tions from Mr. Nadeem. The session
ended with a vote of thanks from
NIBAF for Mr. Nadeem and the SBP
for their efforts in promoting the
growth of the digital banking sector
in Pakistan. Overall, the training
session was a valuable opportunity
for stakeholders to learn about the
licensing and regulatory framework
for digital banks in Pakistan.
Excel Your Business:
Harnessing the Power of Power
BI for Analytics in MS Excel
Microsoft Excel is one of the most
versatile software tools used for
business analysis, reporting, and
strategizing, and having a thorough
understanding of Excel can greatly
increase one's productivity and
work output. NIBAF organized an
online training program on the
topic for data analysts or business
intelligence professionals to discuss
and practice advancements made
by Microsoft in Business Intelli-
gence for the contemporary corpo-
rate landscape. The session was
conducted on March 14-15, 2023 to
enhance the proficiency of users in
Business Intelligence Tools within
Excel. The session was delivered by
Ms. Sumaira Ghouri who shared
valuable insights on how to
manage and connect Excel with
diverse data sources, compile large
data sets, and create data models
with Excel PowerPivot, design
visually appealing Power View
sheets, utilize Power Map to
integrate data with Bing Maps and
create captivating video presenta-
tions. The training was divided into
four sessions, each focusing on a
specific area of Excel. Session one
focused on discover, combine &
clean data with POWER QUERY
where participants learned to
convert data formats with Power
Query steps, parse columns to aid
analysis, and construct a single data
set from multiple sources. Session
two focused on build data model
with POWER PIVOT, where partici- tive Dashboards with Power View
pants were taught to create a dash- and Power Map, where participants
board, understand data models and
the need for data modeling and
deriving relationships from data
sources with the relationship tools
and the diagram view. Session
three was about implementing
DAX FUNCTIONS in Power Pivot
where participants learned about
the introduction to DAX language,
providing context for calculated
fields within a PivotTable, and
exploiting data analytics with their productivity and work output.
Climate Change and Key Risks for
aggregation. Finally, session four
was dedicated to Designing Effec-
learned how to contextualize calcu-
lated fields with Power View filters,
visualize and compare performance
matrices with Power View multipli-
ers, and globalize location-based
results with Power Map.
Overall, the training provided
important insights on the uses and
practical tools for Analytics in MS
Excel to help participants amplify
from the senior management of
PCICL were also invited to interact
with the MTOs under scheduled
evening talks.
A closing ceremony was held on
June 02, 2023 at NIBAF Islamabad
where, Managing Director NIBAF,
Mr. Riaz Nazarali Chunara, Director
L &D Syed Sajid Ali and Managing
Director, PCICL, Mr. Jiang Ketao also
participated. Mr. Jiang Ketao start-
ed off by congratulating all the
young officers on their successful
completion the program and
thanked NIBAF for conducting a
comprehensive capacity building
program for MTOs. In the end, Man-
aging Director NIBAF, Mr. Riaz
Nazarali Chunara concluded the
ceremony and lauded the batch for
their commitment towards learn-
ing and wished them to well for
their career aspirations. The train-
ing ended with award of certificate
of completion to the all MTOs by the
management of NIBAF.
Awareness & Sensitization
Session - Policy for Financial
Inclusion of Persons with
Disabilities (PWDs)
Persons with Disabilities generally
face severe limitations while
accessing financial services due to
their physical constraints and
perceived inability of handling
different banking transactions
properly and safely. SBP has high-
lighted a need to make banking
easy and convenient for them
through supportive physical infra-
structure, accessible products and
services, assistive technologies, and
supportive staff interactions. In
view of the provincial and federal
laws which prescribe a minimum
PWDs
to
be
percentage
of
employed in institutions, SBP has
issued a framework to make finan-
cial services accessible to PWDs
and is actively involved in monitor-
ing its proper implementation in
financial institutions.
As these financial institutions
develop and implement policies to
demonstrate their strong commit-
ment to the inclusion of PWDs as
customers and employees, capacity
building is required across all levels
of the organization. Hence, NIBAF
has been offering trainings in this
sensitive areas for the industry and
issues in operations and agent concerning targeted financia
Financial Institutions behavior. He further stressed the tions on proliferation fina
need to go beyond the regulatory
red flags based on pre-freez
Financial institutions are increas- requirement to facilitate customers. post freezing financia
ingly realizing the importance of The session was attended by Call
financial risks associated with Center personnel from different Excel Formulas & Functions
changes in climate and its impact financial institutions who discussed Masterclass: Unlocking t
on
of Spreadsheets
their
profitability.
NIBAF
their particular issues and interac-
launched an introductory session tions with customers for guidance
on the topic which was held online and from the trainer. Mr. Sajid The highly anticipated trai
on April 13, 2023 by Mr. Azhar Ali, explained regulatory expectations session, "Excel Formulas
Deputy Director, SBP. Mr. Azhar is a from call center agents and shared Masterclass: Unlockin
real cases and instances of deviant
of Spreadsheets," took plac
&
Certified
Sustainable
Green
Finance Professional from the behaviors that may attract punitive 22, 2023, leaving a last
Chartered Bankers Institute UK action by SBP. participating bankers. The
with almost 15 years of experience class aimed to enhance the
in the financial sector. He compre- Synopsis of Targeted Financial banking professionals in ha
hensively covered the understand-
the full potential of Micro
Sanctions
ing of climate change, the relation- Participants received compr
ship between physical and financial SBP requires its regulated entities training on the impleme
risks, causes, impacts and trends in to implement the Targeted Finan- and calculation of formul
global green house gas emissions, cial Sanctions regime under the standing formula refe
key players and their roles in
advanced data analysis tech
UNSC Resolutions which have been
mitigating climate change risk, formulated to contain terrorism and using lookup formulas, t
physical/transition risks and its terrorist financing. data transformations, date
consequences for financial stability functions, statistical form
relevant. Participants from various In order to support financial sector array formulas, and fo
compliance professionals, identify
financial institutions and officials
from SBP attended the session. their obligations in the area and Through interactive mu
avoid any incidences sanctions presentations, practical ex
Call Center Management: Key violations with effective screening, and group discussions,
Regulatory Requirements NIBAF-Islamabad organized an deepened their understandin
online session on the topic for the
Excel formulas and function
Call centers remain a critical touch financial industry on April 19, 2023. comprehensive handou
point for banking sector as seam- Subject Matter Experts from BPRD, scenarios enabled particip
less customer servicing and drive SBP including Mr. Kamran Hyder, apply their newly acquire
towards exceeding customer Joint Director and Mr. Faizan effectively in their day-t
service expectations becomes a
Hassan Yawar, Deputy Director
bigger priority for banks in order to conducted the session. The team Feedback from participan
hold their competitive edge. Acces- discussed the Legal & Regulatory overwhelmingly positiv
sibility afforded by the cell phone aspects, MOFA’s and NACTA’s expressed satisfaction with
has made it a formidable support Guidelines for Implementation of hands-on exercises and the
tunity to share experiences
channel for customers amplifying
UNSC Resolutions as well as practi-
the pivotal role of the inbound call cal processes and scenarios related fellow professionals.
centers in shaping the customer to the sanctions regime. The empowered them to optimize
experience. In order to sustain an experts further responded to differ- use of Excel, leading t
impenetrable market positioning, ent queries regarding interpreta- productivity and accuracy
banking operations.
banks must continue to invest for
tion of the UNSC Resolutions
improvement in the call center
processes and their agents’ capabil-
ities. Although SBP has standard-
ized the variant practices for call
through
management
center
guidelines in the matter, banks
focused on improving their market
share must go beyond the regula-
tory requirements. In this regard, a
on
REGULATORY
KEY
session
REQUIREMENTS FOR CALL CENTERS
was conducted by Mr. Sajid Khan,
Joint Director, Banking Conduct
Policy Department, SBP on April 17,
2023. Mr. Khan explained the basic
regulatory requirements and key
on specific requite of the Bank of serving as Deputy Director (Analy- area of regulatory compl
Punjab, sensitization session on the sis) & goAML Expert in the Financial in-line with the par
topics was conducted on June 21, Monitoring Unit (FMU). He is also a ments of the respective
2023 by Mr. Shahid Iqbal, Subject key member of Pakistan’s goAML
Specialist, NIBAF. Almost 50 partici- reporting and is implementation In this context, NIBAF o
three
in
tr
taskforce
pants including many senior execu-
involved
customized
tives from BOP attended the risk-based screening and analysis of programs for M/S. Pakis
program and appreciated the
cy Exchange and M/S. Rajgan
STRs and disseminating financial
expertise and skill of the trainer in intelligence to various law enforce- Exchange-B. The pro
the area. ment agencies. Pakistan Currency Exchang
conducted in Karachi and La
Customized Programs The trainer discussed various issues while that for Rajgan E
held at NIBAF Islamabad. An
for Exchange Companies faced by exchange companies in enced panel of trainers inc
identification, filing and reporting Mr. Shahid Mubin-Joint Di
Awareness session with FMU on of STRs, process steps for filing STRs tor-EPD-SBP, Mr. Kha
STR Filing on goAML and a detailed discussion mood-Joint Director-BSD-S
Syed Hassan Raza-Ex Assista
on documentation required from
NIBAF has been regularly engaging walk in customers and expectations Director-SBP were invit
with the exchange companies to of FIA vs FMU and SBP. Participants conduct these trainings
assess the skill gap of their employ- from various exchange companies trainers have several
ees and develop suitable training participated in the session and the ence in on-site examinat
exchange companies and thei
trainer discussed their queries and
programs to support them in devel-
oping required expertise in the area issues in the area. off-site policy making and
of regulatory compliance particu- ance monitoring. The traini
larly assessment of AML/CFT risks Regulatory Compliance and programs addressed specific
and related reporting. After AML/CFT and queries of participant
detailed discussions and need
both the exchange companies
analysis from different exchange Exchange companies have shown total of 74 officials attend
companies, an online awareness keen interest in resource develop- trainings and were trained
session on ‘Filing of STRs with FMU’ ment and NIBAF has been coordi- areas of Regulatory Compli
was conducted on February 16, nating with them to assess their and AML-CFT.
2023. The session was facilitated by
specific training requirements and
Mr. Assad Farman Ali currently develop customized courses in the