the full picture, this week – 24 May 2019

by | May 24, 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, we highlight a new report that finds that the majority of UK-based companies do not have the necessary abilities to execute their Artificial Intelligence (AI) strategy. Elsewhere, there is news that some of the world’s largest banks are working towards a £50 million investment in a new digital cash settlement system.

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

Click here to get the full picture sent to your inbox every Friday.

businesses lack AI skills

More than half of businesses do not have the right in-house skills to execute their AI strategy, despite 93 per cent being “fully invested,” according to recent research.

A survey of 300 IT decision-makers from companies in the UK and US found that the AI skills shortage was most prevalent in the UK, with 73 per cent of those surveyed lacking the talent they needed to execute plans, compared to 41 per cent in the US.

When asked where organisations are in their AI and machine learning journey, 93 per cent claimed to be fully invested in AI.

The financial services industry was found to be the most progressive sector, with 80 per cent of businesses having current AI projects in place, followed closely by the retail, distribution and transport sectors (76 per cent) and the business and professional services sectors (72 per cent).

Read more from FStech here.

the encompass view

No longer simply a buzzword, AI is becoming an increasingly important part of our day-to-day lives, however, developing and implementing this across a business is not always straightforward, as this research illustrates.

As more businesses turn to new technologies, such as AI and automation, to maximise their potential, the talent shortage is being felt more acutely and the success of many projects is at stake as a result.

There are certain steps a business can take to ensure a successful outcome for technology projects.

At encompass, we believe it is critical to understand current processes, and the reasons for them, at a deep level in order to be able to really progress.

With this in mind, we use the technique of process mapping to help us identify areas where technology can make the biggest impact and deliver maximum return on investment, as well as to discover where the reasoning and decision-making skills of a human are needed.

Completing this exercise makes it possible to build out a robust business case, including clear goals, which can be used to measure the success of the project and to highlight areas for improvement. Talent is important, but this must always be supported by a measured approach and a clear understanding of exactly what success means, and this combination is something that we strive to consistently achieve.

the encompass view

No longer simply a buzzword, AI is becoming an increasingly important part of our day-to-day lives, however, developing and implementing this across a business is not always straightforward, as this research illustrates.

As more businesses turn to new technologies, such as AI and automation, to maximise their potential, the talent shortage is being felt more acutely and the success of many projects is at stake as a result.

There are certain steps a business can take to ensure a successful outcome for technology projects.

At encompass, we believe it is critical to understand current processes, and the reasons for them, at a deep level in order to be able to really progress.

With this in mind, we use the technique of process mapping to help us identify areas where technology can make the biggest impact and deliver maximum return on investment, as well as to discover where the reasoning and decision-making skills of a human are needed.

Completing this exercise makes it possible to build out a robust business case, including clear goals, which can be used to measure the success of the project and to highlight areas for improvement. Talent is important, but this must always be supported by a measured approach and a clear understanding of exactly what success means, and this combination is something that we strive to consistently achieve.

Szymon Szukalski | Head of Engineering, encompass

top banks to spend £50 million on digital coin project

A number of the world’s largest banks are plotting a £50 million investment in a new digital cash settlement system, as highlighted by Reuters.

The cash injection would support the go-to-market of the Utility Settlement Coin, an initiative spearheaded by UBS and blockchain startup Clearmatics and supported by up to other 17 other banks.

The latest reports say that around a dozen banks are investing in a new entity called Fnality, which would run the project. Clearmatics filed a trademark for Fnality in June last year.

The news comes six months after Clearmatics raised $12 million to prepare for the launch of a Protocol Provider service to support the launch of the USC Project.

Get the latest.

UK lawmakers critical of proposed AML legislation.

UK lawmakers have criticised proposed Anti-Money Laundering (AML) legislation, saying the bill doesn’t do enough to force foreign owners to disclose their property holdings in the country.

The lawmakers, from a cross-party committee of 12 members from the House of Commons and the House of Lords, said the legislation had loopholes that would allow foreign buyers to use trusts to avoid registering transactions.

The proposal is considered an important step in the push to prevent criminals and foreign officials from laundering money through the UK. In 2018, suspicious offshore shell companies and similar entities parked more than £4 billion ($5.1 billion) of real estate in London and other British regions, according to Transparency International.

“There is nothing fundamentally wrong with the bill but we want to tighten it,” Edward Faulks, the Conservative chairman of the joint committee, said. “It is very important that we make it as difficult as possible for criminals to use U.K. property as a vehicle for money laundering.”

Read more from Bloomberg.

news in brief

The Tokyo Metropolitan Government is inviting applications from foreign fintech startups to join an accelerator programme which will provide them with unrivalled access to leading companies in Japan’s financial sector. The international outreach programme is part of the Government’s four-year ‘Global Financial City: Tokyo’ blueprint. Find out more.

A new report that highlights the problem of money laundering in Canada has been branded a ‘wake-up call’ for businesses, but some provinces are skeptical over its findings. Read reaction here.

A survey undertaken by the Economist Intelligence Unit and a risk solutions company suggests that estate agency may be one of the least appealing sectors for money launderers to use for their illegal activities. On the other hand, the EIU survey conducted with LexisNexis Risk Solutions suggests the gaming sector and non-property high value vendors were perceived by compliance experts as the most appealing for criminals looking to launder money. Get the latest.

The fast pace of digital transformation is outstripping the cyber security capabilities of UK businesses, according to a new report from KPMG. A survey of more than 1,800 chief information security officers (CISOs) and 2,000 consumers – including 100 CISOs and more than 100 consumers in the UK – found that, despite the evident risk to customer relationships of a breach of financial data, more than half (55 per cent) of UK CISOs prioritise financial loss and reputational risk in the event of a breach above the impact of such an incident on customer relationships. Finextra analyses the research.

A new article from CBR warns that ‘chameleon” fraudsters are exploiting Companies House and asks if new ID proposals are the answer. Read it here.

the latest from encompass

conferences and events

Don’t forget, we are hosting a webinar with Dun & Bradstreet on 5 June, around aligning customer and vendor due diligence through technology. Nick Ford, Head of Partnerships at encompass, will be participating in the webinar, which will explore the convergence in compliance and procurement strategic objectives and responsibilities, and how joined-up processes can accelerate progress towards the common objectives of reducing costs while streamlining third party onboarding. You can book your place

On 4 June, Alex Street will be speaking at The Brokerage Club’s next Risk Roundtable, discussing accelerating onboarding with automation, at The Brokerage Club, City of London. For more information, contact sally.jones@thebrokerclub.org

From 12-13 June, we will be attending ACAMS AML & Financial Crime Conference Europe in Berlin. We’re looking forward to learning about the latest advancements in managing conflict, regulatory structures and collaborative working. If you’re attending and would like to set aside time to learn more about encompass then contact abis@encompasscorporation.comtoday.

On 18 June, Nick Ford will be speaking at the Automation in AML & KYC Forum in London. This Panel Discussion will cover achieving operational excellence in KYC/AML through automation. The forum welcomes colleagues from banking, capital markets and other financial services to discuss all things automation. Find out more here

the blog

On the blog this week, we highlighted our partnership with Dun & Bradstreet, which will help to help deliver world-leading data and analytics for UK businesses. You can read the full press release detailing the partnership here.

Mark Pflitsch, our Business Development Director, also shared key learnings from the 2019 Global RegTech Summit 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, 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.

By continuing to use the site, you agree to the use of cookies. more information

our website and use of cookies

Your personal information will not be collected if you are only browsing one of our websites but we do use cookies to better tailor our information and our services to meet your needs.

A cookie is a small piece of text that is placed within the memory of a computer and can be later retrieved by web page servers. Cookies are used to enhance your interaction and convenience in using our website and we do not use cookies to record any of your personal information. Cookies may record information about your visit, including the type of browser and operating system you use, the previous site you visited, your server's IP address, the pages you access and the information downloaded by you.

While this anonymous statistical data may be aggregated and used in broader statistical analysis by us and our web monitoring service provider to improve our services, we cannot personally identify you as the source of that data until such point as you provide your personal information to us.

close