The Laundromat

The financial sector has been one of the strongest pillars of the 3cITy Business Services Sector. Historically the high paying sector has dealt with regulatory issues, but it has evolved. Today, this sector has expanded its catalogue of services to include transfers, currency exchanges, financial products and instruments, know your customer (KYC) and Anti Money Laundry (AML) services.

Thanks to a strong academic presence in the field of finance and accounting, as well as linguistics, global companies have started their shared service centers in Gdańsk or Gdynia – Sony Pictures, Metsa, DNV GL, Kemira, Thyssenkrupp, Staples Solutions and Swarovski are just a few examples. It started with easy-to-automate processes and banking back offices, but the companies soon took the lead roles as the authors of future transformation by bringing added value to the local economy, while developing the level and scope of services offered. For example, the Arla Global Financial Service Center, present on the local market since 2008, decided to seriously reinvest and change the organization of work in 2018, or how the PwC Financial Crime Unit and Bayer Service Center Gdańsk became one of the largest employers in the sector.

So, how did the 3cITy build one of the cleanest (anti) laundries in the world?

In 2012, as the world reported a recordbreaking USD$ 1.9 billion fine for the British bank HSBC, mainly for money laundering for Mexican drug cartels, the eyes of most financial institutions were focused on mechanisms to control and safeguard against similar situations. Meanwhile, in the Thomson Reuters office in Gdynia, proprietary AML (anti-money laundering) and KYC (Know Your Customer) solutions were already being developed.

A few years later, a similar shock occurred in Europe, due to the scandal at Denmark's largest and oldest (150 years!) bank, Danske for the laundering of over USD$ 200 billion. This case along with the scandal at Lehmann Brothers, con - firms that "No one is too big to fail". This further legitimized PwC's decision to establish a Financial Crime Unit in Gdańsk. Followed a few months later, by an investment announcement by State Street Bank Poland. They were expanding their services to include support and administration for mutual funds, asset value calculations, financial instrument valuation, decision making on international investment portfolios, and reporting.

Currently, 3cITy is a leading center for AML / KYC operations in Europe, with more than 2,500 specialists employed by PwC FCU, Refinitiv (Started in 2018 on the foundations of Thomson Reuters Financial & Risk as a result of ownership changes) and State Street Bank Poland.

When creating such advanced process branches and services that are being shipped globally, companies speak multiple languages and employ people from across the world. Refinitiv and PwC FCU, oscillating around 30, are among the local record holders in terms of the number of foreign languages supported. Each of the aforementioned companies has developed its own channel of contact with universities, directly influencing not only the labour market, but also the education offer. Both PwC FCU and State Street Bank Poland significantly increased the level of employment compared to the initially declared, consistently adding new services and increasing their reach based on the possibilities of scaling the business in the 3cITy.

The Gdańsk and Kraków branches jointly service over 70% of State Street Corporation’s investment funds in Europe, Middle East and Africa. In turn, the PwC Financial Crime Unit is the largest AML competence center in the world, with other offices in the USA, Northern Ireland, India and the Philippines. Refinitiv can speak of a similar range, serving over 40,000 institutions in 190 countries. All these companies have found their way in the dynamically evolving financial system, which is subject to justified pressure and scrutiny from the regulatory authorities.

Continuous verification of the risk assessment itself is forced by newer methods of money laundering, financing organized crime and terrorism. Thanks to the right tools and qualified experts, further abuses like tax fraud, market manipulation, corruption, use of confiden tial information and breach of security are revealed and stopped. Professional screening and monitoring of changes in the identity status of the end customer or natural persons who hold prominent political positions or perform significant public functions (PEP) are just a few examples of preventing the integration of funds from illegal sources with the financial system.

In less than a decade, 3cITy has become one of the key financial security hubs. The digital world automates repetitive functions, focusing efforts on ensuring security – data, identity, investment. We expect further progression towards advanced processes that dynamically increase employment and expand customer markets. Much was said about the reputation of Polish plumbers, now the largest global leaks are sealed by highly qualified staff in air-conditioned offices in Pomerania. In this case, even Calgon will not extend the life of the washing machine.

Author: Bartosz Wojtasiak

More information:

al. Grunwaldzka 472 D Olivia Business Centre – Olivia Six 80-309 Gdańsk Phone: 58 32 33 256 e-mail: office@investinpomerania.pl bartosz.wojtasiak@investinpomerania.pl www.investinpomerania.pl