1. Arab Economic Forum June 2014 Abdul Hafiz Mansour Secretary SIC

2. A. Mansour Changing Regulatory Environment

3. A. Mansour Regulators Pushing harder Unprecedented Penalty levels Widening AML scope to include: – Financial Regulations – Corruption – Tax Evasion

4. Recent Enforcement Actions  Citi e $10Bn market manipulation  BNP e $5-10 Bn  Credit Suisse, $ 2.6 Bn - Tax evasion  JP Morgan, $ 2.05 Bn - AML  HSBC Holdings, $ 1.9 Bn - AML  UBS, $ 1.5 Bn – Libor manipulation  Standard Chartered, $667 Mn - AML  Barclays, $ 453 Mn - Libor  Citi e $10Bn market manipulation  BNP e $5-10 Bn  Credit Suisse, $ 2.6 Bn - Tax evasion  JP Morgan, $ 2.05 Bn - AML  HSBC Holdings, $ 1.9 Bn - AML  UBS, $ 1.5 Bn – Libor manipulation  Standard Chartered, $667 Mn - AML  Barclays, $ 453 Mn - Libor

5. A. Mansour Current Regulatory Enforcements  Predominantly Administrative & Civil, resulting in financial penalties against the Firms  Faster results, closing the cases through financial settlements:  Large Firms with large means to litigate  Successful Litigations after a long time weaken the impact of enforcment  Negative impact of successful Criminal proceedings on the firm and ultimately the system

6. A. Mansour New Regulatory Trends Regulators realized that Fining Firms has not resulted in the required change in practices Hold individuals accountable for Regulatory violations In the US a new bill in in the making In the UK, more advanced steps in recognizing “ Senior Persons Regime” i.e. the group of senior managers which need to be held to a higher standard of behavior FSB are working in the same direction to enhance corporate governance

7. A. Mansour Long Reach of the US law & Regulations

8. A. Mansour Speaker Contact information: Abdul Hafiz Mansour Special Investigation Commission Central Bank of Lebanon Masraf Loubnan Street, Beirut - Lebanon Email: secretary @sic.gov.lb www.sic.gov.lb