1. IBOS - Making Cross-border banking easier
IBOS Value Proposition
IBOS - Making Cross-border banking easier
IBOS BD Meeting
2nd – 3rd November 2015
Nordea Bank Denmark AS, Strandgade 3, Copenhagen, Denmark

2. Welcome to Copenhagen Alan Scheller Nordea Bank Denmark AS

3. Presentation of Nordea’s Corporate Access Service
Nordea Corporate Access
Presentation of Nordea’s Corporate Access Service
Mikael Kepp
Nordea Bank Denmark AS

4. Minutes from Dublin – Tim Maltin
Overview of the Agenda (Input 01)
Dublin BD minutes (Input 02)
Update on Dublin Action Points (Input 04)
OFB Grids and review calls
Website data grid
New pricing tab layout including new CSP template
UBO Presentation/Webinar
CRS Review
Referral Reporting enhancements
Website training webinars

5. AGM Update – Bob Lyddon Documents approved at the AGM:
New list of IBOS Manuals (09)
New layout of Open-for-Business Grids (10)
New Condensed Standard Pricing template – SEPA Area (11)
New Condensed Standard Pricing template – Non-SEPA Area (12)
Guide for completion of UBO work on a referral (13) – aka Joe’s deck for the UBO Webinar
BD Group has the leeway to amend these documents and the Board will not second-guess

6. AGM Update – New Banks
KBC Lille branch as Host Bank (in implementation)
Santander UK as Associate (Account-Holding Bank then followed by Host Bank – in documentation)
SVB London branch as Host Bank (going for internal approval)
National Australia Bank as Full Member in Australia with New Zealand as Associate (Account-Holding Bank then followed by Host Bank in both cases - making a presentation to their own Board imminently)
Citizens Bank, New England: early stages of investigation as Full Member doing both sides

7. AGM Update – New banks Little traction with other banks in Asia-Pac
Mizuho for Japan only has been mentioned but that would alienate BTMU straight away without resulting with certainty in a positive outcome
Santander has made an introduction for IBOS to Bank of Shanghai, in which they hold an 8% stake
SVB has mentioned their 50/50 joint-venture in Shanghai Silicon Valley Bank

8. AGM Update – New banks
Bank of Shanghai and Shanghai Silicon Valley Bank would qualify as Independent Associates, not Affiliate Associates, because of the shareholding levels:
Could only act as Account-Holding Bank
That might be good as other IBOS banks would not need to place reliance on their KYC processes for customers
But these banks would still have to pass existing members’ KYC tests on themselves, and exchange SWIFT RMA keys

9. AGM Update – Asia-Pacific
The proposal, alongside pursuing those leads, is to reconfirm requirements via a survey in SmartSurvey:
Which countries
What type of coverage
Would banks domiciled in those countries (and not Affiliate Associates of current members) fail your KYC tests as a principle?
Would your bank as a policy refuse to exchange RMA with a bank domiciled in that country?
Would your bank as a policy not place any reliance on statements from banks in those countries about their own customers (thus precluding their acting as Host Bank)?

10. Account Opening Agreement
Package of new Account Opening Agreement, Policy on Translation/Notarisation/Apostiling, and Business Case

11. Account Opening Agreement Update – Bob Lyddon
Introduction to the proposed new package:
Business Case (14)
Account Opening Agreement (15), incorporating:
Pre-clearance
CRS
Letters of Introduction
Separate Policy on Translation, Notarisation and Apostiling (16)

12. Account Opening Agreement Update – Bob Lyddon
Mechanics:
Need to allow that the “Manuals” incorporated in the Account Opening Agreement can be amended without re-signing the Agreement every time
Need to ensure we incorporate the then-current version of the CRS upon signature…
…including the pdf version(s)

13. Account Opening Agreement Update – Bob Lyddon
Intentions and Business Case:
What the new package is intended to facilitate
Why that is good and should lead to more business and the more efficient processing of business
Where we could go next and why that would be good

14. Account Opening Agreement Update – Bob Lyddon
Overview of comments received so far:
Ulster Bank
Intesa SanPaolo SpA
UniCredit (about translation agencies)

15. Account Opening Agreement Update – Bob Lyddon
Support offered by 4th EU AML Directive:
Most IBOS banks count as “obliged entities”, including branches and subsidiaries outside the EU/EEA of members inside the EU/EEA
Members outside the EU/EEA (USA, Canada) should be classed as in low-risk countries (to be checked by them to assure themselves that the same applies under their regime)

16. Account Opening Agreement
Support offered by 4th EU AML Directive:
4AMLD allows one “obliged entity” to rely on another “obliged entity” as a Trusted Third-Party, the same as a notary or accountant
This permits an Account-Holding Bank to rely on any warranties from the Host Bank given during the Account Opening Process as regards authenticity of customer documents
Each IBOS bank will need to sell that story to their Compliance Unit because it would then mean that IBOS referrals default to treatment as being of low risk

17. Account Opening Agreement
Key points for Host Banks:
Does the deal described by the documents represent the deal that Host Banks want, that will enable you to make more referrals and manage customer expectations?
Can Host Banks make the representations listed in the documents regarding their customers and the authenticity of Background Documents?
What are the discrepancies, if any, between what these documents say, and what banks can get buy-in for?
Is there an appetite for getting that buy-in?

18. Account Opening Agreement
Key points for Account-Holding Banks:
Are Account-Holding Banks able to deliver this deal on their side, particularly as regards translation of documents and choice of translation agency?
What are the discrepancies, if any, between what these documents say, and what banks can get buy-in for?
Is there an appetite for getting that buy-in?

19. Website Tools – Tom Nicholas
IBOS Member Website

20. IBOS Member Website Update – Tom Nicholas
Getting all banks to the same place as regards website data and Open-for-Business Grids:
Update on the grid identifying missing data on the IBOS website, and progress on banks completing the missing data (Handout);
Country Practices on ‘Good To Know’ pages with RBS as an example

21. IBOS Member Website Update – Tom Nicholas
Bringing all the facilities into production that have been discussed in and agreed by the BD Group, and training IBOS bank staff on them:
Updated User Guide
Referral Reporting Tool - demonstrate enhancements to the website tools for making and managing referrals
Taking the reporting out of the Tool to the next level
User training programme going forward on the Tool and on the website in general

22. IBOS Member Website Update – Tom Nicholas
Referral Reporting Tool – next level of reporting out of the Tool enhances both quantitative and qualitative reporting
To be accompanied by more/better Deal Reporting, translating into Success Stories and the quarterly ‘Good News’
Country Practices in ‘Good to Know’ pages, as discussed earlier

23. IBOS Member Website Update – Tom Nicholas

25. IBOS Value Proposition

26. IBOS Value Proposition

28. IBOS Calendar
The Excel calendar will be ported onto a webpage and maintained there….

30. IBOS Decisions and Activity Board
Together with a single page showing all decisions and activities in all workstreams….

32. Open-for-Business Grids status and scoring
Open-for-Business – Tim Maltin
Open-for-Business Grids status and scoring

33. Open for Business
Status – Who has completed / not completed? (Input 06)
We have not received OFB Grids from:
Banka Koper
HSBC France
RBC
Santander Brazil
Unicredit Romania
Unicredit Russia
Scores and what they mean: how the numerator can change in certain circumstances

34. Open for Business
Discussion around AGM decision and how to fulfil it (Input 07):
Can we weight the scores to bring out the importance of avoiding Deal Breakers?
90% score is no good if missing 10% are deal breakers
deepening the quantitative analysis by scoring on Deal Breakers
See suggested methodology
Feedback loop:
do banks do what they say in their grids they do?
how to arrange peer-to-peer evaluation so as to deepen the qualitative analysis
See suggested feedback forms

35. Open for Business AGM decision regarding OFB Webinars:
These should go ahead
BD + Implementation audience
1 per Account-Holding Bank per year
To be co-ordinated by Brian Moran
Who will go first?

36. Statement of Open-for-Business Status
Royal Bank of Scotland
Guy Cooper
Statement of Open-for-Business Status

37. DZero DZero Account-Holding Banks
Statement of status of Nordea Bank Finland and Bank Zachodni in Poland

38. Speedbanking Session #1 Including setting the scene
SpeedBanking [tm applied for ]
Speedbanking Session #1
Including setting the scene

39. SpeedBanking Session 1 Introduction (Bob Lyddon – 5 minutes):
Assumption of refreshment of each bank’s Business Case for IBOS
Assumption of internal planning having been done between August and now to prepare these sessions, as laid out in the Annual Business Plan
Separate out the process of nominating new Associates and Foreign Branches
SpeedBanking Session 1
Bilateral discussions of business and the progress of efforts since Dublin, and plans for joint business development efforts between Copenhagen and H meeting

40. Close of Day 1
Dinner has been arranged for at Ravage Restaurant & Bar, Kongens Nytorv 8-16 (15 min walk from the Strand)
Alan will be in the lobby of the Strand around to escort us

41. Day 2 3rd November 2015 Nordea Bank Denmark AS,
Strandgade 3, Copenhagen, Denmark

42. New Payment Products
Presentations by several banks about new products in their market and/or from their bank

43. Why are we discussing this and what is the objective?
New Payment Products
Why are we discussing this and what is the objective?
To see what could enter the Corporate Banking space over a 3-5 year time horizon
What could change the rules of the game
What these new entrants are using to help get themselves into the game (new legal regulations, new common payment schemes such as SEPA, new technology…)

44. Paydirekt Presentation from Unicredit – Markus Meissner
A facility for consumers to make and pay for purchases online, using their bank account without disclosing its details
Merchants get a guarantee of payment which cannot be overridden by the consumer’s rights of reclaim under the SEPA Core Direct Debit Scheme
Paydirekt GmbH is an autonomous entity, a Payment Institution under Payment Services Directive 1, and thus a clearing participant and Debtor Bank/Creditor Bank under SEPA Schemes, able to establish electronic direct debit mandates with other clearing participants

45. A new service offering to ISP customers who are:
Presentation from Intesa SanPaolo – Maria Calcagno
A new service offering to ISP customers who are:
looking for reliable partners,
to enter new markets,
to complete mergers and acquisitions, etc.

46. Nordea – Alan Scheller
Overview of new payment products for Denmark, Norway, Finland and Sweden

47. New Payment Products
Implications of Payment Services Directive 2 and in particular XS2A = “Access to Accounts”
Implications of new Funds Transfer Regulation and in particular the acceptability of IBAN-only for all payments with both endpoints in EU, EEA and “extension territories” (Monaco, Guernsey..)
Group discussion
Conclusions
Next steps

48. Update on business statistics in the year-to-date
New Business Update
Update on business statistics in the year-to-date

49. New Business – Tim Maltin
What new business has been developed in the Association since Dublin:
Record sales levels through the website
2015 Sales Report re business volumes and concentration of activity

50. Business Volumes
Volumes (Customers) of business recorded in the referral tool in 2015:

51. Sales Blindspots AHBs who did not receive: HBs who did not refer:
Banka Koper
CIBANK JSC
CSOB Slovakia
Santander Chile
UniCredit Bank Austria AG
Unicredit SpA
ZAO UniCredit Bank
HBs who did not refer:
Banco Santander Brasil SA
Banka Koper
Ceskoslovenska obchodni banka, a.s
CIBANK JSC
CSOB Slovakia
Intesa Sanpaolo - Frankfurt
KBC Bank NV France
KBC Bank NV Nederland
Nordea Bank Norge ASA
Santander Chile
The Bank of Tokyo-Mitsubishi UFJ, Ltd
Ulster Bank
UniCredit Bank Austria AG
Unicredit SpA
Unicredit Tiriac Bank
ZAO UniCredit Bank

52. New Business next steps
Deal Reporting > Identification of Success stories > Quarterly good news
Next level of reporting from the website tools:
How many referrals are not resulting in an account opening?
How long are account openings taking?
Reasons for Rejections/Withdrawals?

53. New Business blindspots
How much will these actions contribute to closing the blindspots?
What other actions could be undertaken?
Where should those actions be concentrated:
E.g. where big countries are seeing or sending low flows?

54. Summary of reporting enhancements
Type
What
Where
Quantitative
Account-Opening Statistics
Referral Tool
Deal-breakers in OfB
Data-driven tab on 06
Qualitative
Time taken to open account; reason for failure..
Sales blindspots
Success Stories > ‘good news’
Deal Reporting
Peer-to-peer evaluation
Comment-driven tab on 06

55. SpeedBanking Session 2
Bilateral discussions of business and the progress of efforts since Dublin, and plans for joint business development efforts between Copenhagen and H meeting

56. UBO and the CRS
Progress report on UBO deck and webinar, and on developing a customizable version of the CRS in fillable pdf

57. UBO
Update on Ultimate Beneficial Ownership Training to Implementation Teams (Webinar – 29Sep 2015)

58. Dynamic CRS Presentation - Joe Teves
Outcome of the review of the existing CRS forms to identify common requirements and all specific additional data required by each bank (Input 8)
Update on development of a dynamic PDF version Customer Referral Sheet that is bank-specific at the appropriate level, without sacrificing commonality and ease-of-use at main level

59. IBOS
CRS Review

60. Letter of introduction Are tax numbers needed? Turnover and P/L
CRS Review
Letter of introduction
Repeats a great deal of the information already in the CRS
Do we need it or should it be incorporated into the CRS?
Are tax numbers needed?
Be specific about tax ID required, e.g., income vs. VAT
Turnover and P/L
Why 3 years of figures (past vs. forecast) for the parent?
Why is P/L important?
For the applicant, would it be better to know turnover end of 1st and 3rd years?
Name and country of key suppliers and customers
Do banks actually use this detail, i.e., names?
Focus instead on countries?
Would it be sufficient to ask about sanctioned countries?

61. Length of relationship with HB Transaction volumes and values
CRS Review
Length of relationship with HB
Should be this be about the parent or the subsidiary?
Transaction volumes and values
Monthly?
Cover both incoming and outgoing transactions
Estimate percentage allocation of electronic vs. paper
Estimate of domestic vs. international
Average deposit balance?
At end on 1st year and 3rd year of operations?
Repeat per currency of account
Mandators and Signatories
Define mandator vs. signatory?
Signing agreements (now and future) vs. transactional authority
Handle the requirements for signing mandates separately from transactional signing requirements
How do we verify the correct appointment of mandators? 61

62. Directors and other “controlling” individuals PEPs
CRS Review
Directors and other “controlling” individuals
Directors and senior management (see mandators)
We need this information
PEPs
Can the question be dropped and handled through your background checks?
Can we instead provide a general advice on the CRS about PEPs?
Why the address of parent company?
Payment limits for faxed instructions
Should we offer this as a standard option?
Signing of CRS
Both the client and the HB should sign it
HB’s signature should always bear an “IBOS team” signatory 62

63. Bank specific requirements
CRS Review
Missing components
Number of employees, local vs. group-wide
Operating details such as handling of account statements
Initial deposit
Whether the account will be for a third party
Whether shares are issued in bearer form
What do we need regarding FATCA?
Bank specific requirements 63

64. AOB
Any Other Business

65. Other Business – Summer School
We need to be sure of delegates, as opposed to 7-8
Process for defining demand, duration, curriculum and format
Initial poll of interest now…
To be followed by a survey through SmartSurvey

66. Other Business – BD Dates for 2016
H BD Meeting – Host and dates
H BD Meeting – Host and dates

67. Close of BD Meeting
Close of Meeting