Take Control Of Your Financial Crime Mitigation Programme

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Take control of your Financial Crime Mitigation Programme

Identifying and harnessing financial crime and money laundering scenes is more complicated than ever. As per the United Nations, approximately $1.5 trillion is laundered globally for terrorist activities and criminal organizations through banks every year. That’s huge! 

Banks' challenges in fighting financial crime

Employing excellent solutions to fight against financial crime has become the ultimate solution. However, this deal proves to be more expensive. Fraud detection alone costs approximately $70 billion every year to the banking industry. 

 

Today’s banks are challenged to: 

The trend of digitization and digital transformation

The trend of digitization and digital transformation, accelerated by the impacts of COVID-19, changed the typology of financial crimes and how regulated entities seek to detect them. Having said that, trust and privacy are everything; no organization can scale without them. The banking industry is no exception. Automating financial crime mitigation programs including KYC and AML yields the highest detection rates, reduces false positive alerts and errors, and lowers operational costs.  

Let’s quote an example; the pseudo bank places rules-based CFT and AML legacy systems for transaction monitoring and name screening. Given the volume and velocity of the transaction flowing towards the bank, many false positives started generating despite having optimization efforts.  

The bank had set up an ambitious goal to improve effectiveness and efficiency by following innovative solutions, which presented new opportunities to refine the AML processes and paid attention to significant risks. Following a strategic review of the possibilities, the bank decided to partner with a modern, agonistic solution to develop an AI-driven, single integrated platform to host AML technologies, tools, and systems.  

However, despite the investment of time and money, there is still more to be done to prepare a proficient rescue plan for fighting financial crimes. Since different regions have law enforcement actions and ways of dealing with high-profile scandals, banks should be fully packed with the information to stay compliant.  

Cases around the world

Overview of Law Enforcements to battle Financial Crime

Australia

Australia

Following the record fines to two major Australia's banks for breaching the counter-terrorism financing (CFT) and anti-money laundering laws, the Australian Transaction Reports and Analysis Centre (AUSTRAC), the Australian regulator, sanctioned new rules to manage the landscape from financial crime risk. With the new regulations, AUSTRAC held a record of imposing an AU $1.3 billion fine to one of Australia's central banks in September 2020 for AML/CTF breaches, partly resulting from failures relating to the monitoring of transactions.

New Zealand

New Zealand

New Zealand's countering the financing of terrorism, and AML supervisors highlighted the new guideline7 of Enhanced Customer Due Diligence (CDD) to help report entities when CDD is required or AML/CFT risk assessment is required needed. Guidance8 pointed out how to meet AML/CFT obligations relating to CDD and account monitoring that limits the risk of the spread and transmission of COVID-19. In July 2020, New Zealand fined two remitters over NZ $7.5 million for violations of the 2009 Anti-Money Laundering and Countering Financing of Terrorism Act.

India

India

Following the rapid developments in the payment system, the Reserve Bank of India (RBI) introduced myriad changes to reinforce the regulatory framework governing financial crime and cybersecurity. The Master Directive (MD) of RBI includes the guidelines for regulated entities to build a strong governance structure and maintain security controls for digital transformation. There has been an update to the Guidelines on Regulation of Payment Aggregators and Payment Gateways 30 in March 2020 (effective 1 April 2020), highlighting the revised reforms relating to 'directions for opening and operation of accounts and settlements of payments for electronic payments.

Colombia

Colombia

Colombia's risk of terrorist financing and money laundering has been increased slightly up from 4.62 as per the Statistics report. Financial institutions are required to abide by laws to maintain records of account holders and their financial transactions at least for five years. General negligence laws and criminal fraud provisions of Columbia also ensure that the financial sector stays compliant with its responsibilities while protecting its customer's privacy rights. However, if a financial institution suspects money laundering activity in one account, FI's are entitled to the legal exemption to client confidentiality under Colombian law.

About Us

ECS Fin is an engineering enterprise that specializes in process optimization. We design software solutions with a systems approach to transaction processing. 

ECS Fin Fights financial crime

Use of Technology to Combat Financial Crime

ECS Fin one-stop solution, IMS compliance enables FI’s of every size and region to protect their customers and reputation while improving transaction speed and optimizing operational costs. Upgrading to an IMS solution provides the best cloud-based financial crime mitigation ecosystem. It’s high time to deploy the service to make your compliance system more agile, flexible, and scalable. Our mission is to say compliant with every region’s regulation, and that’s why we can help you optimize your work compliance environment performance and assist you in meeting regulatory regimes quickly. Book a demo now! 

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