the full picture, this week – 22 November 2019

by | Nov 22, 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 time, there are calls for the US Senate to pass a proposed law that would provide law enforcement with what is seen as a vital tool in the fight against financial crime.

Elsewhere, a survey of financial and technology professionals finds a belief that senior managers’ slow adoption of new technology, particularly artificial intelligence (AI), is holding businesses back.

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

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calls on US Senate to approve bill to curb money laundering

The US Senate should pass a proposed law that would provide enforcement with a crucial tool in the fight to stem corruption, human rights organisations said in a letter to senators.

Four Democrats and four Republicans are cosponsoring the ILLICIT CASH Act, which would require American companies to disclose information about the people who own or control them.

The bill would make it harder for corrupt foreign officials to register businesses anonymously, to hide ill-gotten gains, and to escape legal accountability. A companion bill, the Corporate Transparency Act of 2019, passed the House of Representatives last month.

the full picture, this week - 22 November 2019 | Sarah Sadoun, Human Rights Watch | Encompass BlogThe Corporate Transparency Act, which became the first bill of its kind to see a floor vote in Congress, requires companies to disclose their true ‘beneficial owners’ to the US Treasury at the time the company is formed, and keep such information up to date whenever it changes.

Sarah Saadoun, business researcher at Human Rights Watch, commented:

In October, the House of Representatives took a bipartisan stand to drive money launderers out of the shadows. The US Senate should join them in barring anonymous businesses and remove a stain on the United States’ proud record of fighting corruption.

Find out more about the proposed law here.

the Encompass view

The passing of the Corporate Transparency Act by the House of Representatives marked an unprecedented step forward in efforts to combat corruption and crime facilitated by companies with hidden owners, and the ILLICIT CASH Act represents another crucial point in this vein.

At the time, the bipartisan support for The Corporate Transparency Act was seen as providing a have a real opportunity to fill a major gap in the US’ AML framework. What this level of debate and, more importantly, action, does is underline just how important the issue of beneficial ownership is to fighting financial crime globally.

There is no denying that moves in this direction, requiring openness around ownership, would have significant impact.

As regulatory requirements for the identification and verification of Ultimate Beneficial Owners (UBOs) have moved to be more stringent, this has become a time-consuming and costly exercise.

At Encompass, we know the power of automation in this regard. The Encompass platform uses intelligent process automation to access global data sources, extract the relevant documents and data, and then analyses these to discover beneficial owners eight times faster than current manual processes. For a business, this means they can act more quickly, confidently and also reap the benefits of significant time and cost savings.

the Encompass view

The passing of the Corporate Transparency Act by the House of Representatives marked an unprecedented step forward in efforts to combat corruption and crime facilitated by companies with hidden owners, and the ILLICIT CASH Act represents another crucial point in this vein.

At the time, the bipartisan support for The Corporate Transparency Act was seen as providing a have a real opportunity to fill a major gap in the US’ AML framework. What this level of debate and, more importantly, action, does is underline just how important the issue of beneficial ownership is to fighting financial crime globally.

There is no denying that moves in this direction, requiring openness around ownership, would have significant impact.

As regulatory requirements for the identification and verification of Ultimate Beneficial Owners (UBOs) have moved to be more stringent, this has become a time-consuming and costly exercise.

At Encompass, we know the power of automation in this regard. The Encompass platform uses intelligent process automation to access global data sources, extract the relevant documents and data, and then analyses these to discover beneficial owners eight times faster than current manual processes. For a business, this means they can act more quickly, confidently and also reap the benefits of significant time and cost savings.

Wayne Johnson | CEO & Co-founder, Encompass

senior managers ‘blamed for AI and tech lag’

the full picture, this week | News! | Encompass blogOne in four finance and technology professionals blames senior management for slow adoption of AI and analytics, which they believe is impacting progress when it comes to digital transformation.

According to a new survey of 500 financial and technology professionals, many feel that resistance to new technologies among senior staff could mean their company being left behind.

Bernard Marr, an author and AI adviser, said that the most efficient data maturity journey would involve manageable steps rather than huge leaps. He added:

From better planning and decision making, to smoother operations and automated processes, data analytics fuels business improvements. Yet, for the average business, adopting advanced analytics techniques like AI is never going to be an overnight shift.

Other barriers highlighted included a perceived lack of skills within organisations, siloed working practices and concerns about data quality, data protection and security.

digital payments ‘will replace cash by 2030’

the full picture, this week - 22 November 2019 | mobile payments | Encompass blogFinancial services professionals are preparing for cash to stop being the preferred payments method for the majority of consumers by 2030.

In a poll of 129 financial services professionals carried out by EY at the 2019 SIBOS conference, it was unanimously (96%) agreed that cash will be replaced by digital payments methods by the end of the next decade, with 59% believing mobile payments will be the most common.

31% said they would choose biometrics – including facial recognition, fingerprinting and retinal scanning – as the dominant method by 2030.

While respondents believe a cashless society can provide benefits, such as improved convenience (39%) and financial crime prevention (36%), concerns remain over financial inclusion, data security and privacy.

Financial services professionals based in Asia, the Middle East, Africa, Latin America and Australasia cited social exclusion as the most negative by-product of a cashless society.

In addition, a majority of respondents (52%) believe that financial institutions can do more to reassure consumers that their data is protected through increased investment in cyber security protocols.

Read more on the findings.

news in brief

the full picture, this week | News! | Encompass blogHow can banks leverage the cloud to achieve customer centricity? Find out in this article, which examines the key issues.

A professor of international studies who co-wrote a book about organised crime and is an expert on money laundering and corruption in South America has been arrested on charges of laundering corruption proceeds from Venezuela. The Guardian has the latest.

60,000 people from 130 countries gathered for a celebration and exploration of new financial technologies, at Singapore’s Fintech Festival. This summary looks at some of the main topics of discussion and analysis of the event.

The UK Jurisdiction Taskforce of Tech Nation’s Lawtech Delivery Panel has published its legal statement on the status of cryptoassets and smart contracts. The landmark statement sought to address legal uncertainty by recognising cryptoassets as tradable property and smart contracts as enforceable agreements under English law.

The rise of open banking could be a major boon for consumers, but it also poses major challenges in areas such as regulatory oversight, cybersecurity and changing business models, according to a report from the Basel Committee on Banking Supervision. Finextra has more.

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.

webinar – AML regtech roundup 2019

AML Regtech Roundup 2019 | Dr Henry Balani | Encompass webinarsThis year has seen changes to regulation, increased fines for non-compliance and a surge in new technology being developed to help firms with Anti-Money Laundering (AML) compliance.

Dr. Henry Balani, compliance and AML specialist and academic, talks through the changes in AML regtech throughout 2019 and looks ahead to potential trends in 2020. Key learnings include:

  • this year’s changes to AML regulation
  • industry news stories
  • recent research regarding fines and costs of AML compliance
  • advancements in AML technology

Book your place here.

meet the Encompass team

The Encompass team will be out and about across the globe, participating in key industry events.

Fit 4 Legal Tech | Wed 27 November | WeSpace, Zurich

The Fit4LegalTech series gives you an innovative way to learn how others extract value through the use of legal tech. Encompass will be attending the conference and hope to see you there.

View all our upcoming events here.

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.