the full picture, this week – 13 December 2019

by | Dec 13, 2019 | All Blog Posts, 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 time, we give our take as figures show Financial Crime Authority (FCA) fines so far this year are up six times on those witnessed in 2018.

Elsewhere, Ukraine’s government approves the nation’s final draft of a new money laundering law that applies to virtual assets (or cryptocurrencies) and virtual asset service providers (VASPs), according to the Financial Action Task Force (FATF) guidelines.

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

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Encompass partners with Pega to streamline and enhance Know Your Customer processes

Encompass announce partnership with Pega to streamline KYC processes | Pega logo | Encompass company newsEncompass this week announced a partnership with Pegasystems Inc. (PEGA), the software company empowering digital transformation at the world’s leading enterprises.

The partnership will enable mutual clients to seamlessly access Encompass data within Pega Know Your Customer™ (KYC) and Pega Client Lifecycle Management™ (CLM) applications to streamline customer onboarding and enhance customer experience.

Find out more here.

FCA fines this year up six times on 2018 level

The FCA has so far charged firms £391 million in 2019, up from £60 million during 2018.

This year’s figure is the highest since 2015, when the regulator fined firms £905 million. More than nine of the FCA’s 17 fines in 2019 were worth more than £10 million, while only two rose above that level in 2018.

This spate of regulatory action on banks found to be in breach of transaction reporting and AML rules has highlighted the need for more automated RegTech solutions.

According to the FCA’s enforcement statistics, it has almost 700 investigations open.

The caseload has meant that the average completion time of ongoing investigations is rising, and, during the 2018/19 financial year, it’s taking an average of 29 months to settle cases.

Read more here.

the Encompass view

In some ways, this increased level of regulatory action by the FCA is not surprising, given the goal of promoting the UK generally and London specifically as a safe place to invest and conduct business.

London is well known as a global financial capital and the need to protect investors, business and consumers is critical to ensuring the ongoing viability of the financial system.

Transparency, clear regulations and rule of law are always key characteristics that promote stability and growth in financial markets. As global financial market competition increases and the potential negative impact of Brexit takes hold, the ability to demonstrate the London financial markets are ‘clean as a whistle’ will go a long way towards promoting its growth.

the Encompass view

In some ways, this increased level of regulatory action by the FCA is not surprising, given the goal of promoting the UK generally and London specifically as a safe place to invest and conduct business.

London is well known as a global financial capital and the need to protect investors, business and consumers is critical to ensuring the ongoing viability of the financial system.

Transparency, clear regulations and rule of law are always key characteristics that promote stability and growth in financial markets. As global financial market competition increases and the potential negative impact of Brexit takes hold, the ability to demonstrate the London financial markets are ‘clean as a whistle’ will go a long way towards promoting its growth.

Dr Henry Balani | Head of Delivery Services, Encompass

Ukrainian law says ‘virtual assets’ can be used for payments

the full picture, this week - 13 December 2019 | Verkhovna Rada, Ukraine | Encompass blogThe Verkhovna Rada, Ukraine’s legislature, has approved amendments that introduce legal terms and definitions pertaining to the crypto space.

The new legislation, which aims to transpose the FATF standards into national law, also identifies who is to take responsibility for the oversight of cryptocurrencies in the country.

The draft law on the prevention of the legalisation of proceeds from crime and the financing of terrorism and weapons of mass destruction proliferation was supported by a significant majority in the Rada.

The bill was amended to incorporate “virtual assets,” described as property and as a digital expression of value that can be traded or transferred and used for payment or investment purposes.

Read more here.

regulators consider new rules to temper Big Tech data advantage

the full picture, this week - 13 December 2019 | Financial Sustainability Board | Encompass blogGlobal banking regulators say the arrival of Big Tech firms like Google, Amazon and Apple in financial services poses a host of stability risks that may require sweeping new laws to level the playing field with smaller tech firms and banks.

The report by the Financial Stability Board acknowledges that the entry of Big Tech firms into finance has numerous benefits, including the potential for greater innovation, diversification and efficiency in the provision of financial services.

“However, Big Tech firms may also pose risks to financial stability,” states the report.

Some risks are similar to those from financial firms more broadly, stemming from leverage, maturity transformation and liquidity mismatches, as well as operational risks.

news in brief

the full picture, this week | Peter, what are you doing? You've lost the news! | Encompass blogThe Bank of Lithuania is stepping up its research into the implications of offering a central bank digital currency, publishing a new research paper highlighting CBDC design choices as well as monetary policy and financial stability implications. Find out more.

White collar crime prosecutions have reached a five-year low, despite a surge in reported fraud cases, research has revealed. The number of prosecutions fell by 14% last year, to 6,669. This is down from almost 9,500 prosecutions in 2015 and 7,786 in 2017.

Why does the Japanese fintech sector face unique challenges? That’s the topic of this article.

Global digital money transfer transaction volume will reach two billion by 2024, up from 1.1 billion in 2019. Market analysis suggested that both online and mobile channels are achieving strong growth, with FinTech disruptors and market incumbents rapidly gaining traffic.

Switzerland’s financial has regulator warned the nation is “particularly exposed” to money laundering risks given its traditional role as a magnet for the world’s wealthy, as well as emerging threats from blockchain and banks’ lower profit margins.

in the spotlight: Robyn Todd, Senior Product Manager

In the spotlight: Robyn Todd, Senior Product Manager | Encompass BlogAsk Robyn Todd for her verdict on life at Encompass, and she passionately responds that one of the biggest benefits is “working towards something that we know is going to be a success.”

That success is, in no small part, down to the growth and relevance of our product – something that Robyn believes in and strives to maximise on a daily basis. As Senior Product Manager, she is at the heart of ensuring we are delivering what our customers need, while consolidating our place in the market.

Here, she shares what her role involves in a more practical sense, the factors that convinced her that Encompass could provide what she was looking for in a working environment, and why it has been such a worthwhile time in her career so far.

on demand webinar

AML regtech roundup with Dr Henry Balani

an insightful look at all things regtech in 2019

AML regtech roundup webinar – summary

This year, we saw many changes to regulation, increased fines for non-compliance, and a surge in new technology being developed to help firms with AML compliance.

Dr. Henry Balani, compliance and AML specialist and academic, hosted an end-of-year webinar to take us through the changes in AML regtech and look ahead to potential trends in 2020.

We give a summary of the key talking points and Henry’s interesting and timely insights.

vote for Encompass at the British Bank Awards!

vote for Encompass at the British Bank Awards | Encompass blogWe’re delighted to have been nominated in the ‘RegTech Partner of the Year’ category at the British Bank Awards. Voting is now open, and winners will be decided by financial firms.

To make it to the list of finalists for our category, we need your help! Here’s how to vote:

  • go to the survey here
  • find question two on the survey [‘RegTech Partner of the Year’]
  • enter your winner [Encompass Corporation!]
  • follow the survey steps and fill in the boxes asking why we should win and how you would rate us
  • enter your email address

The survey is quick and easy to complete and voting for the finalists is open until Sunday 12 January 2020, so there’s plenty of time to do your bit to help us claim the award.

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.