the full picture, this week – 26 April 2019

by | Apr 26, 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 is a look at a report that finds that businesses are not getting the most out of their adoption of the latest technologies, such as Intelligent Automation (IA).

Elsewhere, we focus on a petition created with the aim of gaining backing for the introduction of an EU court designed to tackle money laundering and global financial crime.

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

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unlocking the full potential of intelligent automation

Businesses need to do more to get the most out of the adoption of the latest technologies, including automation, according to new research.

A survey of nearly 600 business leaders across 13 countries, conducted by KPMG International and HFS Research, found that only around a fifth of companies have scaled up or industrialised IA, and also concluded that they were not working fast enough to achieve objectives.

While the most popular options utilised were found to be Artificial Intelligence (AI) – which is being piloted by 43 per cent of firms – and Natural Language Processing (NLP), Robotic Process Automation (RPA) was revealed as the least trialled technology.

A shortage of skills needed to support AI, as well as uncertainty over financial implications, was found to be the primary concern for business leaders when it came to using these technologies to meet their goals.

Shamus Rae, head of digital disruption at KPMG UK, said:

Investment in IA technologies, as well as their adoption, is gaining traction rapidly, but many companies are still struggling to demonstrate significant impact.

All too often these projects are stunted in pilot mode and fail to deliver the intended results because they are not underpinned by a digital transformation strategy for the whole organisation. When implemented with a clear vision and integrated approach, IA can propel businesses forward by providing a stark competitive edge but also deliver considerable returns in the shape of cost saving and revenue generation.

You can read more here.

the encompass view

The KPMG report helps to emphasise that technology driven change for organisations can be inherently difficult at times but the challenges presented here are not unique to IA programmes. Rather, these challenges can often be par for the course for technology projects, especially when change can often appear emergently and disconnected from the “big picture” for many organisations.

In order to realise the full potential of new technology investments, we need to think strategically and incorporate change management during every step of the way. People tend to view change management as “good communication” but that’s only the beginning. Our encompass implementation projects look to adopt the best-practices of change management to ensure our customers realise value from our IA solutions. If I had to summarise what that looks like in practice, my advice would be not to ignore the human side of technological innovation, even when discussing the merits of automation.

Investing time to connect the people side of change, articulate the business goals, outcomes and benefits of the project will always be important to its ultimate success.

the encompass view

The KPMG report helps to emphasise that technology driven change for organisations can be inherently difficult at times but the challenges presented here are not unique to IA programmes. Rather, these challenges can often be par for the course for technology projects, especially when change can often appear emergently and disconnected from the “big picture” for many organisations.

In order to realise the full potential of new technology investments, we need to think strategically and incorporate change management during every step of the way. People tend to view change management as “good communication” but that’s only the beginning. Our encompass implementation projects look to adopt the best-practices of change management to ensure our customers realise value from our IA solutions. If I had to summarise what that looks like in practice, my advice would be not to ignore the human side of technological innovation, even when discussing the merits of automation.

Investing time to connect the people side of change, articulate the business goals, outcomes and benefits of the project will always be important to its ultimate success.

Scott Goodsir-Smyth | Head of Customer Success, encompass

petition for money laundering court

A petition has been launched calling for the creation of an EU court to tackle money laundering and financial crime.

The petition, titled ‘Establish The International Court Against Corruption, Fraud and Money Laundering,’ has a goal of bolstering governance, with the founder, Alexander Lebedev, sharing that the International Corruption, Fraud and Money Laundering Court would be the basis of “global efforts in fighting corruption and money laundering operations and fair redistribution of assets seized as a result of this activity.”

Mr Lebedev added:

This will encourage the mobilisation of civic societies internationally to establish real transparency, serves a common purpose, and has a good chance of being implemented because it is built around successful international institutions – but it does need the backing of the United Nations.

The court can be established by nations which consider themselves as ‘transparent’ and ‘doing their best’ to fight financial fraud.

Get the latest on his efforts.

AML regulations for law firms

As the Solicitors’ Regulation Authority makes Anti-Money Laundering (AML) compliance one of its high priority areas to work on, there has been an increasing focus on how organisations can get up to speed and make sure they are complying with what is expected of them.

Few areas of law firm compliance requirements can safely be regarded as one-off issues to be dealt with and then forgotten.

This is all the more pertinent in relation to AML controls and the regime introduced by the Money Laundering, Terrorist Financing and Sources of Funds (Information on the Payer) Regulations 2017 (MLR2017), according to Matthew Moore, who has analysed the coming of age of regulation and what that has meant within the space.

Writing for Solicitors Journal, he takes a look at the regulatory landscape, how this has changed in recent times, and explains how programmes are more likely to achieve buy-in from the professionals at the heart of the industry.

You can read what he has to say here.

news in brief

The securities regulatory authorities across Canada have announced a co-operation agreement with the UK Financial Conduct Authority (FCA). The agreement extends the work of the Canadian Securities Administrators (CSA) Regulatory Sandbox Initiative and the FCA Innovate project in providing a controlled environment for businesses to develop and test innovative solutions that promote efficiency and consumer choices in the financial sector. Find out more.

Latvian Prime Minister Krisjanis Karins has pledged to rid the country’s banking system of money laundering “rats” in a year, as the Baltic state faces international pressure over its ability to counter financial crime. Read more here.

Amid continued concerns around the impact Brexit will have on the talent deficit in the financial services industry, Felicity Burch, director of innovation and digital at CBI and Omar Ali, partner at EY, recently discussed how to inspire the next generation of fintech talent. They shared their thoughts for the future with Finextra.

US federal government blockchain spending will rise to $123.5 million in 2022 – an overall compound annual growth rate of 63.1 per cent – according to analysis from market intelligence firm IDC. Its report explained that in general, IT services related to blockchain integration will grow faster than hardware and software solutions as there is an evolving market for blockchain as middleware or microservice. Get the latest from FStech.

the latest from encompass

On the blog this week, we looked at the issue of digital identities, as encompass’ David Williams examined the road to cross-border harmonisation and interoperability within Asia, as well as developments in the region.

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.

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