The Banking Executive Magazine - February 2022

Level Up Forensic Skills of Arab Banks INTRODUCTION On the 3rd and 4th of February 2022, the Union of Arab Banks held its Conference on ABC, AMLA and MENA FATF Recommendations. The keynote speeches by distinguished members of United States Depart- ment of Treasury, Federal Reserve Bank of New York and Saudi Central Bank, and closing remarks of the Secretary General of the Union of Arab banks and Chairman of the US- MENA PSD initiative highlighted the importance for Arab banks to level up their forensic skills in order to combat fraud and corruption. In this article we present a brief overview of forensic science and forensic tech- nologies and applications. Following this overview we briefly cover the main themes addressed in the Union of Arab ABC, AMLA and MENA FATF conference, and we focus on the im- portant topic of forensic audit moti- vated in the closing session of the UAB conference. The case study of forensic audit of the central bank in Lebanon is considered. The article concludes with recommendations for Arab banks to build capacities and up skills in various forensic areas. FORENSIC SCIENCE Forensic science, also known as criminalistics, is the application of science to criminal and civil laws, mainly on the criminal side during criminal investigation, as governed by the legal standards of admissible evidence and criminal procedure. Forensic scientists collect, preserve, and analyze scientific evidence dur- ing the course of an investigation. While some forensic scientists travel to the scene of the crime to collect the evidence themselves, others oc- cupy a laboratory role, performing analysis on objects brought to them by other individuals. Still others are involved in analysis of financial, banking, or other numerical data for use in financial crime investigation, and can be employed as consultants from private firms, academia, or as government employees. FORENSIC TECHNOLOGIES AND APPLICATIONS As technology infiltrates every aspect of our lives, it is no wonder that solv- ing crimes has become almost futur- istic in its advances. From retinal scanning to trace evidence chem- istry, actual forensic technologies are so advanced at helping to solve crimes that they seem like something from a science-fiction thriller. Forensic technology is a technology used for investigation and identifica- tion of facts surrounding a crime, sometimes using carbon related chemicals around the crime scene and advanced technologies like arti- ficial intelligence (AI) and machine vision. Forensic technology is one of the fastest-growing field in the U.S. One way to measure this is in the in- creased demand for forensic science technicians. According to the Bureau of Labor Statistics BLS (2021), there will be a 16 percent increase in jobs for foren- sic science technicians between 2020 and 2030. The BLS indicates that this growth is due to new foren- sic science techniques that have in- creased the availability and reliability of objective forensic infor- mation. Courts and law enforcement agencies need to hire additional staff to use these techniques to analyze data for use in trials. Latest advances in forensic technologies for 2022 compiled by forensic colleges include: • DNA Phenotyping: While DNA gathered from a crime scene can be matched to a suspect by comparing samples, DNA can also be used to determine what a suspect physically looks like. • Biosensors for Fingerprint Analysis: Like DNA, fingerprints found at a crime scene can be matched to a suspect by comparing them. Foren- sic scientists can now use biosen- sors to analyse the minute traces of bodily fluids found in fingerprints to identify the suspect. Data that can be detected include age, med- ications, gender, and lifestyle. Biosensors can also be used on other bodily fluids found at a crime scene. • Immunochromatography: Immunochromatography is a method to test for diseases by dropping a small sample onto a prepared test strip. Results are rel- atively quick, and common tests that use this technique include COVID, HIV, and even pregnancy tests. In forensics, immunochro- matography tests are used to detect substances in subjects’ bodily flu- ids, such as drugs and medications. • Stable Isotopes of Water: Isotopes vary from atom to atom and can have a unique signature. Recent forensic developments have found that scientists can de- termine where the sample could have originated by isolating the isotopes in a water sample found on a suspect or victim. • Forensic Palynology: Forensic palynology is a relatively new area for forensic scientists. Pa- lynology is the study of pollen, spores, grains, and seeds and can be used in forensics to identify a subject’s location. • Blockchain-Based Solutions and Cloud Forensics: Over 50 percent of personal and corporate data is now stored in the cloud, meaning on remote servers. As a result, digital forensic scien- tists developed methods for collect- ing, analysing, and evaluating data that has been collected from the cloud. Managing this data raises a number of security and privacy is- sues. To help protect the integrity of the data as well as maintain a cus- tody chain, digital forensic scien- tists have begun to use blockchain technology as it is virtually impos- sible to tamper with. ISSUE 158 FEBRUARY 2022 the BANKING EXECUTIVE 9