17,000 business in the UK will be contacted by the Home Office and called on to publish their Modern Slavery Statements. It is estimated that only 60% of business who are required to do so (those with a turnover of more than £36 million) have done. According to Minister for Crime, Safeguarding and Vulnerability Victoria Atkins:
Some businesses are already leading the way in taking action by being open and transparent about what they are doing to identify, tackle and prevent forced labour in their supply chains, but too many are still failing to meet their basic legal obligations
Yesterday was UK Anti-Slavery Day, and Reuters asks how current Modern Slavery laws can be made more effective, allowing the UK to play its part in the United Nations goal of eradicating this crime globally by 2030. It is estimated that the cost of modern slavery to the UK is £4.3 billion annually.
Banks are being asked to play their part in eradicating this heinous crime by the UK’s National Crime Agency (NCA). Anti-money laundering controls should be detecting the proceeds of modern slavery and human trafficking in order to stem the flow of funds. NCA deputy director Tom Dowdall said:
What we are asking the banking and financial sector is about developing a greater understanding that this crime exists and that through greater vigilance we can do more to protect victims.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has reported a 70% increase in suspicious transactions [subscription required] as it prepares to open its 2018 Compliance Report.
Financier, Bill Browder, brands money laundering enforcement in Denmark ‘a joke’ as yet another Nordic bank gets drawn into the region’s scandal. Meanwhile, an opinion piece in Bloomberg accuses European banks of being all too willing to overlook suspicious transactions from high-risk customers.
Money laundering enforcement failures by the German government are blamed for high property prices, yet according to the country’s Financial Intelligence Unit, only 20 notifications of suspicious transactions were received from real estate agents in 2017. Over in the UK, the real estate sector in the UK has been given more time to respond to the Law Commission’s consultation on money laundering.
Despite stronger laws focused on tax evasion in Europe, loopholes still exist, according to a report by the European Green Party, reports the Guardian. Failure by some countries to adhere to the Common Reporting Standards and ‘golden visas’ are among the issues.
Questions about the impact of tech giants moving into business lending continue to abound, but the American Banker surmises that it’s large, national lenders that will face increasing competition, rather than smaller community banks. Howard Headlee, head of the Utah Bankers Association, told American Banker earlier this year:
small banks succeed because they are in their communities dealing with the tough credit issues that nobody else wants to solve. Amazon and Google aren’t going to do that.
And finally, is your organisation’s culture impacting the pace of digital transformation? Here are ten hacks to get things moving.
Over on our blog this week our Head of Customer Success, Scott Goodsir-Smyth, highlights the role customer success plays in successfully implementing a new technology solution and avoiding costly mistakes.
anti-money laundering compliance: source of wealth and source of funds
Thursday 8 November, 1500 – 1540
In this webinar, Amy Bell, legal industry advisor to encompass, summarises the key regulatory drivers behind the need to identify and verify source of wealth and source of funds, and provides some practical guidance on how to approach this challenge. Book your place here.
Meet the team at Sibos 2018 taking place in Sydney from Monday 22 – Thursday 25 October. This year’s theme, Enabling the Digital Economy, will focus the financial industry leaders attending on digital transformation and technology.
Are you attending the Intelligent Automation in Banking Summit in London on Wednesday 24 October? The encompass team will be joining some of Europe’s leading banking and industry leaders to learn about the latest trends in AI, IPA and Machine Learning.
Global Wealthtech Summit takes place in London on Wednesday 7 November. The team will be attending and are available to discuss your needs around technology and automation in wealth management and private banking.
We’ll be at Hong Kong FinTech Week later this month with our partner, and silver sponsor, TransUnion.
Get in touch today if you’d like to pre-arrange a meeting with our team at any of these events to discuss automating your Know Your Customer and due diligence processes.
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.