Olurotimi Oladipo, a seasoned accountant with nearly a decade of diversified experience in digital financial services, has been instrumental in shaping the landscape of internal audit, control, and anti-money laundering (AML) strategies within the industry. In this interview, Oladipo reflects on pivotal moments during his tenure as Internal Audit Senior, Anti-Money Laundering Unit at Guaranty Trust Bank (GTBank) and his experience in his new role at Lotus Bank as Head, Anti-money Laundering Audit, shedding light on his contributions to the pioneering efforts in digital banking and AML measures.
Could you describe your role and contributions during the testing phase of GTBank’s USSD mobile banking launch in 2014?
According to recommendation 15 of the Financial Action Task Force (FATF), it is imperative for financial institutions to proactively identify and evaluate potential risks associated with money laundering and terrorist financing that may emerge as a result of adopting new technology.
The project had significant importance for the bank’s digital growth and required meticulous attention to specifics. The fact that the bank was about to be the first in the country to implement this product seemed difficult due to the presence of financial crime and other associated concerns within the prevailing context.
My role entailed conducting an extensive risk assessment of the product, with the primary objective of ensuring its compliance with regulatory requirements and identifying and mitigating potential gaps that could potentially make the product alluring to money launderers and fraudsters. The principal objective was to ensure that customers’ funds and services used by the USSD application are secured with minimal to no fraudulent activities being possible.
The main objective was to ensure that any revenues generated by the bank through the product are not used to finance sanctions or engage in fraudulent activities. The project became a huge success and it is now being emulated by all banks in Nigeria now.
As a pioneer staff at Lotus Bank, what challenges have you faced when developing Anti-money Laundering tools from scratch and how have you overcome them?
I would not classify them as obstacles, as the experience affords me the opportunity to apply my skills and expertise to address what is typically perceived as limitations in the Nigerian banking industry.
I always think about how to improve and optimize anti-money laundering (AML) tools and technologies to align with global trends, laws, and regulations in the global fight against financial crimes. Originating from a jurisdiction with a high level of risk, I am deeply passionate about combating financial crimes due to my experience of the severe impact they have on individuals, institutions, and the overall economy. Therefore, I perceive challenges as an opportunity to showcase creativity.
Working with an inexperienced technical group could have posed a difficulty; however, I have the privilege of working together with a highly skilled and proficient team.
How have you demonstrated leadership skills, particularly in the context of digital financial services?
Leadership is consistently showcasing the achievable possibility of seemingly unattainable goals. Digital financial services, especially in this part of the world, is what the majority of the populace consider as a fallacy. I mean people in this part of the world want to see the people they are entrusting their finances with before they can commit crime.
In my capacity as a leader, I advocate for the merits of digital banking, which offers a multitude of advantages over traditional banking systems. A growing number of individuals are coming to terms with this realization, and it is only a matter of time before there are no alternatives. However, I will continue to serve as an ambassador until then.
In your opinion, what are the key components of an effective Anti-money Laundering program, and how do you ensure compliance within an organization?
There are three pillars of an effective AML program which are;
– Effective Internal Control system by designating a compliance officer whose duties include training and updating staff members on compliance regulations and changes, follow up on audit issues, amongst others. They work closely with the process owners.
– Establish clear protocols, controls, and procedures for detecting financial crimes following a risk-based approach. This would involve identification of risk, assessment of the impact of the risk posed, Customer risk profiling for prioritization of monitoring, and of course effective transaction monitoring.
– Build functional frameworks and procedures in line with extant regulations and of course best international practices. The fight against money laundering and financial crimes is global.
To ensure compliance, there must be continuous training and upskilling. The workforce must remain abreast of changes in policies both locally and internationally. I believe that employees will be more cautious and compliant once they are cognizant of the severe consequences associated with non-compliance. Since joining Lotus Bank, I have organized and participated in a periodic training session that relates to international best practices.
Could you provide examples of how you have leveraged your analytical skills to identify and mitigate potential risks in the digital financial service industry?
Pre-COVID-19, GTBank’s audit scope involved travelling within the local and international borders to carry out audit engagements. However, movement restrictions during COVID-19 compelled us to depend on technology to perform our duties. Fortunately, the experience proved to be the most fruitful, as we successfully developed internal tools that enabled remote audits of units.
COVID-19 was an eye-opener. It pushed us to accomplish more in the absence of physical process inspection. By expanding the purview of our audit and granting us access to a greater number of audit samples, we were able to identify risks more precisely.
During this time, I obtained the Professional Scrum Master Certifications, which enhanced my proficiency in utilising data to identify and combat financial crimes and money laundering through an organisation using agile methodology.
How do you stay updated with the latest trends and regulations in the digital financial services industry, particularly in relation to Anti-money Laundering measures?
Staying up to date in the world of financial crimes and anti-money laundering is very key because regulations governing financial institutions especially the digital financial service industry is dynamic and keeps changing nearly everyday. As we intensify our fights against financial crimes and money laundering, so are the perpetrators also devising new methodologies.
To keep myself abreast of all these trends, I joined the membership of both local and internationally accredited institutions like Association of Certified Anti-Money Laundering Specialists (ACAMS), Certified Fraud Examiners (CFE), Designate Compliance Professionals (DCP) where latest trends in the digital financial service industry as it relates to anti-money laundering is circulated from time to time.
Websites of regulatory authorities and global governing bodies too are a very good way of keeping informed. Policies, procedures, and frameworks are published from time to time.
and then