Anti-Money Laundering (AML) and Counter-Terrorism Funding (CTF) compliance rose, in many ways, as a result of the September 11th attacks on America argues AML/CTF expert Doug MacKinnon.
The attacks shed new light on the methods that terrorists used to shift their funds. In light of this the US, as one of the foremost global economies, made their AML/CTF regulations much more stringent.
At the same time, however, technology has evolved in the way that we do our banking, meaning that transactions now take place on a greater scale and a faster rate. It has therefore become even more important that professional firms are able to stay abreast of financial transactions.
The same technology also makes it possible for fewer people to work with a far greater volumes of data and accounts. This has heightened the importance on those processing transactions to know exactly who they are dealing with.
Another factor that has led to the increased levels of compliance is that there are many young FinTech and RegTech companies who operate in this sector. Many of these new companies offer solutions that make it possible to adhere to stringent compliance policies through technology.
Compliance and compliance regulation has consequently become far more critical to professional firms across the economy. As a direct correlation, job titles such as Compliance Officers, CMOs and MLROs have grown in standing. Where once they were reactive to what was happening around them, they are becoming more far more proactive to what is going on with their company’s customers.
Experts have given a competing list of priorities as to what financial services and law firms should do to make sure they remain compliant moving into the future. These include ensuring there is satisfactory governance structures in place, a good company culture where suspicions can be raised, new legislation is enacted and embraced at all levels, and that servers are sufficiently well protected from cyber-attacks.
For Doug MacKinnon, AML/CTF regulations will only get tougher as governments respond to the increasing threat. Most governments across the globe are now following the guidance set by FATF, and with the 4th Money Laundering Directive (AML4) from the EU soon to be implemented, there is still work for professional firms to make sure they remain compliant.
Read the full article by Eva Diaz here:
It used to be one of the nondescript back office functions in most financial services companies. Today, compliance and risk management is at the core of every company in the financial markets. In fact, compliance and risk management has become so critical to the operations of all financial services providers that the demand for experts has skyrocketed over the past few years.
The light at the end of the tunnel however, is those that are methodical in their onboarding process, and who utilise technology to make the process seamless for the customer, can steal a march on those that are not. Embracing AML/CTF technology results in companies having a more satisfied customer base while avoiding sanctions and fines from regulators.
Banks and law firms can effectuate a competitive edge through the use of a tool such as Encompass to help them with their client onboarding, ensuring they remain compliant in AML/CTF regulations while generating an automated audit trail.
Encompass customers report a 72% reduction in search time, and a return on investment of over 1000% through the use of Encompass products.
Founded in 2011 by entrepreneurs Roger Carson and Wayne Johnson, and operating from the UK, encompass is the creator of unique, innovative Know Your Customer (KYC) software for banking, finance, legal and accountancy that enable better, faster commercial decisions. The company is driven by the belief that the best decisions are made when people understand the full picture.
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