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:
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.
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