White paper outlines best practices to help banks mitigate the risk of compliance breaches, while maximizing automation, efficiency, and straight-through-processing.
Fundtech, a market leader in global transaction banking solutions, today released a white paper titled “Reducing the Risk and Cost of Payments Compliance for Banks.” It outlines best practices to help banks comply with the global patchwork of anti-money laundering (AML) regulations and mitigate the risk of compliance breaches, while maximizing automation, efficiency, and straight-through-processing.
Money laundering poses an enormous and increasing threat to banks’ financial well-being, ability to comply with regulation, and reputation. Despite record spending on AML compliance systems, most transactions highlighted as suspicious turn out to be “false positives” that lead to even greater costs and workload within banks. Best practice to minimize false positives and achieve compliance goals can be broadly divided into three areas: know your customers, know your transaction, and know your process.
“By following best practices, banks can achieve compliance at a reasonable cost,” says Marco Lauber, Senior Vice President, Global Presales at Fundtech and co-author of this white paper. “But in a world of increasingly savvy criminals and rapidly changing regulation, the challenge becomes staying compliant. Banks must remain vigilant, and select a technology partner that will keep them on the leading edge of managing regulatory risks.”