In positive news for risk professionals, according to a new poll from LexisNexis, 73% of risk and compliance professionals believe that the new regulations will make it easier to catch money launderers.

This is a jump on two years ago, when the same research carried out by LexisNexis Risk Solutions showed that only 17% of risk professionals thought it would make a change. LexisNexis surveyed 200 UK professionals.

However, in a separate piece of research conducted by Consult Hyperion for Mitek – timed to coincide with the date of the 4th Anti-Money Laundering Directive coming into force – showed that a reliance on manual  and inefficient process costs UK banks upwards of £5m a year. With the scope of these checks going to become more frequent and thorough, Consult Hyperion have concluded that this annual waste is likely to grow to £10m a year.

The Consult Hyperion research shows that the fines for non-compliance of KYC will rise to 10% of turnover for serious breaches, and that this is being risked on humans when it could be automated.

Read the full story of Finextra:

4th EU AML Directive will make curbing crime easier, but cost banks millions

As the 4th EU AML Directive comes into force today, a pair of studies suggests that while most UK FS industry financial crime professionals think the new rules will make it easier to prevent money laundering, they are likely to cost banks millions in inefficient KYC checks.

about encompass

Founded in 2011 by entrepreneurs Roger Carson and Wayne Johnson, and operating from the UK, encompass is the creator of unique, innovative Know Your Customer (KYC) software for banking, finance, legal and accountancy that enable better, faster commercial decisions. The company is driven by the belief that the best decisions are made when people understand the full picture.

want to turn regulatory compliance
in to a competitive advantage?

Contact us today to arrange your personalised consultation of encompass. Discover how our KYC automation software can help your business accelerate onboarding and give you peace of mind that you are regulator ready.

By continuing to use the site, you agree to the use of cookies. more information

our website and use of cookies

Your personal information will not be collected if you are only browsing one of our websites but we do use cookies to better tailor our information and our services to meet your needs.

A cookie is a small piece of text that is placed within the memory of a computer and can be later retrieved by web page servers. Cookies are used to enhance your interaction and convenience in using our website and we do not use cookies to record any of your personal information. Cookies may record information about your visit, including the type of browser and operating system you use, the previous site you visited, your server's IP address, the pages you access and the information downloaded by you.

While this anonymous statistical data may be aggregated and used in broader statistical analysis by us and our web monitoring service provider to improve our services, we cannot personally identify you as the source of that data until such point as you provide your personal information to us.

close