The UK governmentâs drive to establish the banking industry as pioneers of online authentication is to be welcomed, according to leading business process management company, Global 360. The initiative - "Connect the UK" - was launched in early April to promote public access to technology, but critically includes a range of measures to improve internet security, vital in the drive to quash money laundering activities.
Crucially, Global 360 believes that tackling user authentication will reduce instances of the financial crime of money laundering1 (estimated by the International Monetary Fund to account for 2% - 5% of the worldâs Gross Domestic Product). Although tighter international and EU legislation to tackle the problem has been introduced, it is increasingly ârisk-basedâ, leaving institutions responsible for assessing the âriskâ of financial crime. The exact requirement of organisations is not always clear.
Jon Pyke, senior vice president of technical strategy at Global 360, explains: "Businesses are often completely in the dark about exactly what systems and controls are required, and frequently organisations are given too wide a berth to decide on what procedures are necessary to comply with the rules.
However, failure to adhere to legislation can have far-reaching consequences. Pyke continues: "Lack of compliance with anti-laundering provisions is taken very seriously and can result in fines, bad publicity and damaged reputation. It can have a fatal effect on the publicâs confidence in undertaking electronic financial transactions."
Organisations can safeguard themselves by exercising excellent business practice, in particular when it comes to customer authentication - which requires a vast amount of data to be collected and stored in an easily accessible form with adequate record keeping procedures put in place. Global 360 also believes that businesses can benefit by implementing technologies that allow automation of these processes, thereby greatly reducing the likelihood of vital customer identification steps being omitted or important data being mislaid or lost.
Global 360âs solution enables financial institutions and other organisations to track documentation through the entire account opening process. Advanced business process management and workflow technology allows the generation of a âcase management folderâ for each new customer account opened, which can then be routed from department to department and the appropriate checks carried out. Progression through the application approval process can only be achieved if all the relevant checks have been carried out.
The implementation of such technology reinforces the UK governmentâs current drive to establish the banking industry as a pioneer of online authentication. Global 360âs solution ensures that account details are never lost, and the system prevents any part of the account opening process from being omitted and ensures that the bank and its staff do not commit errors or omissions which could result in their failing to fulfil the customer identification requirements embodied in UK anti-money laundering regulation.
Pyke concludes: "Business process management is an effective and efficient way that banks and other businesses can ensure that vital administrative procedures - in particular that of customer authentication - are carried out in a compliant manner. In addition, it will ensure that the generation of important management information will, if used constructively, considerably improve the overall efficiency of the organisation. In these competitive times, that is a potential advantage that few businesses can afford to ignore."