1. How “de-risking” is changing the face of AML compliance programs
Andrew Simpson, Chief Operating Officer, CaseWare Analytics
The last decade has brought with it sweeping changes to the financial industry that has made it increasingly difficult and costly for banks, money services businesses (MSBs) and other financial institutions to fulfill their anti-money laundering (AML) compliance requirements. Under pressure from executives, board members, and regulators alike, many banks have taken aggressive steps to reduce their exposure to fines and penalties. One such step that is becoming increasingly common is to sever ties with smaller financial organizations that they consider high risk, including MSBs, non-profits, foreign embassies and correspondent banks.
2. How to use graph technology to detect money laundering
Emil Eifrem, CEO, Neo Technology
Money laundering happens across the globe, it underpins criminal and terrorist activities and it is on the increase leaving organisations, governments and law enforcement agencies firefighting.Recent US government estimates show that money laundering sits at around US$800 billion to $2 trillion. That is 2% to 5% of the global GDP. But it isn’t just banks and financial institutions that are being hit. It is any organisation that carries out financial transactions – from retailers to insurance companies.
Governments are increasingly looking for ways to combat money laundering. The European Union, for example, has recently strengthened legislation to tackle terrorism financing, tax avoidance and money laundering in Europe. But, despite tightened legal measures and the Panama Papers and Russian Laundromat exposures, money laundering shows no signs of abating.
3. AML software: How to select the right provider in 2017
Alex Hammond, Managing Editor, bobsguide
Regulatory pressure on financial institutions and services to crack down on illegal activity has never been stronger. The sophistication levels of criminals wishing to process finance illegally, coupled with the increased scrutiny financial institutions are now facing, supported by fines and investigations, has put extra emphasis on ensuring companies are doing as much as they possible can do to comply with AML regulation.
4. Fintech's role in improving the KYC client review process
Anti-Money Laundering and Know Your Customer regulations dictate that financial institutions must ensure that they know their clients and verify their identities with appropriate data and documentation that proves that their clients are who they say they are, are not involved or related to anyone involved in money laundering or terrorist financing and don’t represent an inordinate risk to the institution or financial system as a whole. Evidencing is important here.
5. How banks and fintechs need to adapt to a shrinking global banking landscape
Anders la Cour, Chief Executive, Saxo Payments
The global transaction banking industry is experiencing one of the biggest shake-ups it has seen in decades. Non-bank tech disruptors such as Bitcoin and the blockchain, the eastward shift in global economic power, low-interest earnings in developed markets, the emergence of challenger banks, and regulatory pressure to reduce risk and inefficiency in payment-clearing infrastructure are all contributing to what is a seismic shift in how the sector operates and what customers expect.