the full picture, this week – 02 August 2019

by | Aug 2, 2019 | All Blog Posts, the full picture this week, Featured

Let us put you in the picture this week, as we round-up and react to the latest news from the financial crime compliance and technology sectors.

This week, we look at a report that concludes that the demand for Application Programme Interface (API) technology is gaining momentum.

Elsewhere, there’s news that the European Commission has highlighted problems within member states’ Financial Intelligence Units (FIU).

These issues, and more from around the globe, give us plenty to dive into for your Full Picture, This Week…

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Modern Slavery Act and the supply chain: how firms can get the full picture

Modern Slavery Act and the supply chain | encompass blogA recently-introduced law in Australia requires companies of a certain size to publicly state the steps they are taking to keep their supply chains free from forms of modern-day slavery.

Under this, companies will have to file annual statements on their modern slavery efforts according to a set of mandatory criteria, including a description of the company’s operations and supply chain. The first of these statements is likely to be due by mid-2020.

With these obligations in mind, it is crucial that firms get the full picture of their supply chain and know what is behind all operations.

Here, Encompass’ Business Development Manager, Gary Clarke, explores the issues and how Encompass’ capabilities when it comes to identifying beneficial owners could assist in what is now a key task.

in the spotlight Graham Marshall

Graham Marshall has always wanted to play a part in something that makes a difference. It’s how he knew engineering was the right career path for him.

Having been at the heart of global companies, managing teams in the UK, he has enjoyed a varied and challenging career to date, and it was the prospect of stepping up to the challenge of helping to bring a first-class product to customers as part of a growing business that led to his decision to join Encompass.

As Engineering Manager, Graham leads squads in Glasgow and Sydney, making sure that they “deliver a product that delights our customers – efficiently, on-time and to have a great experience in doing that.”

Here, he shares more on his background, what drives him and why enjoyment really is everything when it comes to getting the most out of a job.

banks look to APIs for efficiency

banks look to APIs for efficiency | encompass blogThe demand for API technology is gaining momentum as firms look to digital services to improve efficiency and establish new business models.

A joint report from secure financial messaging provider SWIFT and the Boston Consulting Group (BCG) found that interest in APIs – which determine rules and standards for integration between software applications and data sharing – has risen, when it comes to financial services firms, over the course of the past year.

In 2018, awareness of APIs among asset managers increased 26 percentage points to 72 per cent, according to a BCG survey.

The report stated that the growth of APIs for post-trade has resulted in real-time visibility of information such as settlement status and intraday risk, enriched data and analytics and operational benchmarking for comparison with peers.

Sumitra Karthikeyan, Global Head of Securities Servicing for BCG, said:

Wholesale banking is becoming more digital, and APIs have been one of the key technologies underpinning that transformation… APIs are now starting to break into the securities servicing industry, emerging as a leading technology executives turn to as they seek to transition to digital-first firms. While familiar challenges from the past, such as interoperability and security, are headwinds to adoption, we believe they will be overcome and expect increasing adoption going forward.

Read more.

the Encompass view

As this report shows, APIs are becoming a key driver as firms in the financial services space look to use the best in new technology in order to streamline output while improving the services that they provide to customers.

By allowing applications to communicate with one another, APIs boost efficiency and help companies make informed decisions with better information, bringing together multiple data sources into a single offering.

Within financial compliance, change has become the norm. With new regulations coming into force, risk and compliance professionals must prioritise the need to continuously review and update internal compliance policies to reflect the regulatory requirements.

AML/CTF compliance policies require building connections with the APIs of each of a firm’s preferred data providers’. Even a minor change to a AML/CTF compliance policy may have an impact on data collection, which can have a ripple effect on technical API integrations.

The Encompass API links more than 60 data providers into a single interface, connecting users to the most in-depth and relevant data they need to make customer onboarding decisions. Designed for fast, simple integration, it utilises a standardised global data model for integration and data utilisation, promoting an efficient and time and cost effective way of working.

the Encompass view

As this report shows, APIs are becoming a key driver as firms in the financial services space look to use the best in new technology in order to streamline output while improving the services that they provide to customers.

By allowing applications to communicate with one another, APIs boost efficiency and help companies make informed decisions with better information, bringing together multiple data sources into a single offering.

Within financial compliance, change has become the norm. With new regulations coming into force, risk and compliance professionals must prioritise the need to continuously review and update internal compliance policies to reflect the regulatory requirements.

AML/CTF compliance policies require building connections with the APIs of each of a firm’s preferred data providers’. Even a minor change to a AML/CTF compliance policy may have an impact on data collection, which can have a ripple effect on technical API integrations.

The Encompass API links more than 60 data providers into a single interface, connecting users to the most in-depth and relevant data they need to make customer onboarding decisions. Designed for fast, simple integration, it utilises a standardised global data model for integration and data utilisation, promoting an efficient and time and cost effective way of working.

Ed Lloyd | EVP Global Head of Sales & Marketing, Encompass

European Commission highlights problems within member states’ FIUs

There are serious coordination and communication problems within a number of EU member states’ Financial Intelligence Units (FIUs), according to a European Commission report.

The publication entitled, ‘Towards better implementation of the EU’s anti-money laundering and countering the financing of terrorism framework,’ identifies that there are a number of FIU across the EU that are not properly fulfilling their duties to investigate suspicious financing, engage relevant bodies or share information.

Although the document does not name the member states in question, it concludes:

some Financial Intelligence Units fail to engage in a meaningful dialogue with obliged entities by giving quality feedback on suspicious transaction reports. The lack of templates for reporting also hampers the quality of the reports by obliged entities.

It is also highlighted that technical issues and a lack of uniformity of information exchange have led to problems.

Latest here.

on demand webinar

understanding 5MLD

practical implications and anticipating future regulatory changes

Taiwan issues three digital banking licences

Taiwan issues three digital banking licences | encompass blogIn a first for the island, Taiwan’s Financial Supervisory Commission has issued virtual banking licences to three consortiums.

According to Reuters, Japanese app operator LINE Group’s LINE Financial Taiwan and Taiwan telecom operator Chungwa Telecom’s Next Commercial Bank were granted licences, as well as Rakuten International Commercial Bank, operated by Japanese e-commerce firm Rakuten Inc and Taiwan’s IBF Financial Holdings.

Following in the footsteps of other Asian regulators, this move supports non-bank competitors who want to compete with traditional financial services and leverage their user databases to provide digital-first products and services.

Singapore, Thailand, Malaysia and Korea are also expected to issue virtual banking licences this year.

Find out more from Finextra.

news in brief

The Solicitors Regulation Authority (SRA) has seen a 43 per cent rise in reports of possible money laundering. In the first nine months of 2018 it received 218 money laundering reports, compared with 152 in the same period in 2017, a ‘significant’ increase, according to the SRA. Read more.

Responding to US lawmakers’ scrutiny of Facebook’s digital currency plans, Ripple executives Brad Garlinghouse and Chris Larsen have written an open letter urging the authorities not to paint all cryptocurrencies with the same regulatory brush. FStech has more.

Is regtech encouraging a cloud revolution? That’s the question posed in this article by Finextra.

Fintech financing hit $10.9 billion during the second quarter of 2019 – the second best quarterly performance ever recorded by FT Partners. The San Francisco-based tech investment firm’s latest report recorded mergers & acquisitions (M&A) activity during the first six months of this year already topping the entirety of 2018, at $148.3 billion, compared to $127.8 billion. Read more.

A fifth person has been charged over an alleged $100 million money laundering syndicate operating in southwest Sydney. Police allege he was a member of the syndicate and deposited large sums of cash at financial institutions, with the money sent to China. Read the latest.

survey

current KYC challenges in customer due diligence

the latest from Encompass

We want to hear from you! We have had many discussions with global financial services firms about their priorities and the challenges they are facing in 2019.

One theme that is coming through time and time again is the increase in regulation adding complexity to customer due diligence requirements, and how teams are struggling to manage ever-changing rules while juggling a range of responsibilities.

As a result, we are investigating common industry themes to establish a way that we can work together to bring real change in KYC processes. Make sure your voice is heard by taking the survey. You have until Wednesday 7 August to share your views.

The world of Know Your Customer (KYC), compliance and financial crime never sleeps, and if your challenges are keeping you up at night let us help. Encompass intelligently automates information and news discovery for KYC requirements for onboarding ongoing monitoring.

Driven by your internal policies, our platform automatically constructs corporate ownership structures, discovers beneficial owners, and in minutes screens all relevant entities and persons for regulatory, reputational and financial risk.