the full picture, this week – 14 September 2018
The weekend is nearly here, but first of all let’s catch up on a whirlwind of a week. The full picture, this week takes in initiatives to combat tax evasion, some highs and lows in the fight against money laundering and a deep dive by McKinsey into the global implications of artificial intelligence.
financial crime and regulation
As regulatory focus on tax crimes intensifies, Asian countries are improving data sharing in a bid to increase transparency and aid enforcement efforts. The South China Morning Post reported that 1,700 Hong Kong financial institutions will start sharing information with local tax authorities in 50 jurisdictions, while the Straits Times focuses on a new data sharing agreement between Singapore and Indonesia [registration required].
The use of complex corporate structures to facilitate tax evasion and money laundering has prompted governments globally to improve transparency into company ownership. India’s 1.7 million companies were due to report on their ownership by 12th September, 2018, but confusion over the application of ownership thresholds has resulted in the extension of this deadline, reports BloombergQuint.
UN Secretary-General Antonio Guterres has praised Nigeria and Tunisia in their fights against money laundering, in a recent speech.
“At its January Summit this year, the African Union launched the observance of 2018 as African Anti-Corruption Year. I am pleased to note that anti-money laundering efforts in Nigeria and Tunisia have seen funds returned,” the UN chief said.
Meanwhile, Denmark is proposing an eight-fold increase in the size of fines for money laundering.
Love it or hate it, AI is here to stay, and knowledge is power in harnessing AI’s multiple benefits. To that end, McKinsey’s new paper discusses in detail the potential impacts of artificial intelligence on the global economy. The paper explores adoption, what disruption to expect during the transition to AI, and how AI will impact national economies.
And finally, a new white paper from the Financial Industry Regulatory Authority (FINRA), explores the developments in regtech for the securities industry. This follows a detailed study which also identified five key areas benefiting from regtech. These were surveillance and monitoring, customer identification and anti-money laundering compliance, regulatory intelligence, reporting and risk management and investor risk assessment.
meet the encompass team
Don’t forget to stop by our stand at the upcoming Briefing Transformation conference in London next week. We’d love to discuss your specific requirements around automating the KYC process and would be happy to take you through a short demo of our solution.
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 robotically automates information and news discovery for KYC requirements for onboarding, event-driven refresh and remediation.
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.