Initiatives on Risk and CVA - PowerPoint Presentation

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Initiatives on Risk and CVA & CaLP scoping study on Risks and Financial Management

DATE:

7 November 2019

LOCATION:

Global FSC webinar

SPEAKERS:

CaLP

,

Alice Golay

Risks and CVA

CVA

68%

from 2016 to 2018  now at 4.7 billion = time to focus on QUALITY  Risks as one of the biggest barriers to effective and expanded use of CVA (State of the World Cash Report 2018) Incl. broader risks in humanitarian action that have specific implications for CVA. Working group on Risk under the cash workstream of the Grand Bargain, co-led by WFP and CaLP. CaLP as a membership network aims to help actors understand and mitigate risks, facilitate an environment of openness for experience sharing and ensure collaboration around risks.

Global Food Security ClusterWebinar on RISKS and CVA7 November 2019

Overview - Ongoing initiatives

October - December 2019

Global Food Security Cluster

Webinar on RISKS and CVA7 November 2019

Webinar: Data sharing in CVA, ethics, ownership and privacy

Learning Event: Risk Management, Douala

Webinar: Organizational readiness for data management

.

Learning Event: Risks and CVA with local NGOs of North-West Syria, Gaziantep

29 Oct

7 Nov

Webinar Global FSC: Risks and CVA

26 Nov

Learning Event: Risk and CVA, with INGOs working inside Syria,

Beirut or Amman tbc

Learning Event: Putting responsible beneficiaries’ data protection at the heart of our work, Dakar

Cash Week event:

CT Financing and Anti Money Laundering, Data Responsibility and Protection in CVA, London,

here

.

20 Nov

Webinar: Biometrics, risks and benefits, Middle East

Guest blogging

e.g. Linda Raftree on data responsibility,more coming

Ongoing

16 Oct

31 Oct – 1 Nov

21 Nov

27 Nov

4 Dec

CaLP

Scoping study on Risks & Financial Management

Global Food Security Cluster

Webinar on RISKS and CVA7 November 2019Study’s focus Existing legal frameworks don’t target humanitarian action or CVA, but can have significant consequences.Many humanitarian organizations are lacking capacity and guidance to confidently manage these risks.

CaLP members have demonstrated possibility to influence regulators but it does take so much time and efforts.  Anti-Money Laundering

Counter-Terrorism Financing

Three specific challenges:

Transfers of funds to country of operations.

Identification of in-country service providers.

Beneficiary identification and data security.

CaLP

Scoping study on Risks & Financial Management

Global Food Security Cluster

Webinar on RISKS and CVA7 November 20191. Transfers to country of operationsCurrent reality: “Cooling effect” at national levelReputational and compliance risk burden for FSPs in country, in addition to national legislation. Humanitarian organizations less attractive as clients.

FSPs protecting themselves from regulatory penalties.Steps that can be undertaken by CVA actors

Financial Action Task Force recommends a

risk-based approach.

Prepare banking relations in regions of potential future operations.

Collaborate, propose scale, share bank facilities, negotiate as group, etc.

CaLP

Scoping study on Risks & Financial Management

Global Food Security Cluster

Webinar on RISKS and CVA7 November 20192. Identification of in-country service providers:Steps that can be taken by CVA actorsAssess and identify capable and willing FSPs.Improve own understanding of AML/CTF and sanctions regulations.

Adopt a Know your Business (KYB) approach. CWG develops strong relationship with central bank.AML/CTF regulations apply when FSPs are contracted to deliver CVA to recipients

FSP

unwilling

to take humanitarian organizations as clients

Weighing the compliance risk.

De-risking, deterrents.

Risk varies for FSPs at national level e.g. banks under more scrutiny than Hawalas or MNOs.

CaLP

Scoping study on Risks & Financial Management

Global Food Security Cluster

Webinar on RISKS and CVA7 November 20193. Beneficiaries identification and data securityCurrent realityEC AMLD-5 - Transfers of 50 USD and over Screening of individual beneficiaries against sanction lists:

Targeting/eligibility of beneficiaries so far considered by Humanitarian actors as sufficient for CTF. Screening often not carried out + rarely considered an effective mitigation measure on its own. Would be a red line for some organizations: refusing grants.Has not yet emerged as an issue but could be a future worst-case scenario.   

Organization required to know the recipient and the likely use of funds

CaLP

Scoping study on Risks & Financial Management

Global Food Security Cluster

Webinar on RISKS and CVA7 November 2019Conclusions & Food for thoughtBetter understanding of Governments’ regulations on FSPs. Humanitarian actors to increase influence on FSPs and engage with regulators.Shared information on risk registers in relevant coordination bodies.

CVA/humanitarian actors to understand what affects financial flows, find the right partnerships.Donor governments to provide clear guidance, define standards.Humanitarian actors to unpack what the real risks are and increase donors’ comprehension of control/oversight in place.  



less risk aversion.

less extensive donor/regulators

requests on CVA.



joint mitigation measures.

Working more on the country/national level

And more globally...



better equipped.