Fighting Double Financing in Germany

Leaseurope’s EU Conference on Fighting Fraud in the Leasing Industry

Frederik Linthout, Managing Director

Brussels, Belgium / 18 November 2015

AGENDA

1. UniCredit Leasing

2. The History of Fraud

3. DataCollect

4. Statistics

2

3

1. UniCredit Leasing

International Experience – local Expertise UniCredit Leasing

Leasing operations in 18 countries with

about 3.000 employees grant a network

of great standard

Focused on customer‘s needs and

delivering flexible business solutions

Single point of entry, in customer‘s home

country, for any international business

Competence-Centers dedicated to

specific asset groups and industries

The successful combination of

international experience and local

expertise makes transactions easy.

4

1. UniCredit Leasing in Germany

Facts & Figures

New Business Volume

New Contracts

Number of Clients

Employees

1,6 bln EUR

17.500

23.000

380

Figures 2014

Incorporation

Shareholder

Domicile

Subsidiaries

1963

100 % UniCredit Bank AG

Hamburg

UniCredit Leasing Finance GmbH

Structured Lease GmbH

UniCredit Leasing Aviation GmbH

Mobility Concept GmbH

Overview

About us

0

500

1.000

1.500

2.000

2013 2014 2015

New Business Volume (mln EUR)

2. The History of Fraud in Germany

Last Millenium: FlowTex

5

Fraud Cases – FloxTex

the largest corporate scandal in German history

total loss approximately € 2.6 billion

not double but multi financing of drilling equipment

less then 10% of the financed assets ever existed

another nice case of double financing in 2011

total loss double digit € million

fraud detected by the son of the of the company´s founder…

6

2. The History of Fraud in Germany

Actual Decade: Biegger + King Fraud Cases – Biegger + King

2. The History of Fraud in Germany

Actual Decade: NordRental

the turning point 2012

total loss again double digit € million

the fraud was detected by DataCollect

the first major case detected by anti fraud management

7

DataCollect – NORD-RENTAL

3. DataCollect

Building the Coalition of the Willing

8

DataCollect

After major losses caused by fraud a handful of Leasing

Companies in Germany started a common approach on

gathering data in the beginning of 2012

Obviously there was a demand for an external provider to

collect, process and refine data supplied by the

participating companies

PS-Team proved to be a reliable partner for the task

Already in Q3 2012 the first major fraud case was

detected….

3. DataCollect

How it Works

9

DataCollect

A protection association of banks and leasing

companies at a European level with the objective of

securing property rights

Anonymised Data (machine numbers) are delivered

frequently (mostly monthly) and reconciled, not

critical in terms of data protection law

The double financing of vehicles and machinery is

revealed completely automatically

3. DataCollect

How it Works

In case of hits, the affected financing companies

are informed through the web portal and

automatic data transfer in a standardised

escalation process

Communication between the affected financing

companies is supported by the Customer

Service Center

PS DataCollect Cars helps every individual

participant to keep his database up-to-date

10

DataCollect

3. DataCollect

German Participants (Machines)

11

DataCollect

4. Statistics

Annualy compared data records

2 Sources of growths:

the number of participants is growing

the asset classes and the „correct“ data supplied are growing

Until the end of 2015 more than 3 million data record will be compared annually

12

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

2012 2013 2014 2015*)Stand

30.09.2015

37.000

1.007.353

2.463.372

2.802.252

Compared data records all participants

*) as of Sep 2015

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

2014 2015*) Stand30.09.2015

303.994

239.292

Compared data records UCLG

*) as of Sep 2015

4. Statistics

Comfirmed Cases of Double Financing

13

0

50

100

150

200

2012 2013 2014 2015*)Stand

30.09.2015

4

177 194

150

*) as of Sep 2015 *) as of Sep 2015

0 €

14 € 16 €

12 €

- € 2 € 4 € 6 € 8 €

10 € 12 € 14 € 16 € 18 €

2012 2013 2014 2015*) Stand30.09.2015

mln

Risk Potential all Participants

*) as of Sep 2015

2012 was just the beginning

growing number of cases driven by

enlarged group of participants

risk potential double digit € mln

annually

detecting cases in an early stages

reduces the risk significantly

to include also european business

seems to be very promising

14

Frederik Linthout

Managing Director

UniCredit Leasing GmbH

Nagelsweg 53

20097 Hamburg

Tel. +49 40 23643-171 - Fax +49 40 23643-33171

E-Mail: Frederik.Linthout@unicreditleasing.de