How to plan for a new AML Transaction Monitoring System
Financial institutions need to follow AML/BSA requirements so they can have confidence in their compliance process and ease the pressure from regulators. Part of this process is transaction monitoring to identify any risk of money laundering, or other financial crime. If a suspect transaction is found, a thorough suspicious activity report must be passed along to regulators and law enforcement.
How to create a risk-based AML strategy
A risk-based approach was identified by the FATF as an effective and proactive stance of tackling anti-money laundering compliance. They reported a risk-based approach means that “countries, competent authorities, and banks identify, assess, and understand the money laundering and terrorist financing risk to which they are exposed, and take the appropriate mitigation measures in accordance with the level of risk.”
What are the best practices for integrating AI into your AML compliance program?
To take your AML compliance program to new heights of effectiveness, introducing an artificial intelligence (AI) technology could be the right decision. Certain features like automation and rules-based algorithms provide unmatched benefits including fewer false positives, streamlined investigations and overall, a risk-based approach to financial crime compliance.
How to deal with AML compliance disruptions
Anti-money laundering compliance teams need to have several traits to help keep them at their best, these include resilience and adaptability. As an industry, we need to be aware of all challenges, both new and commonplace. Often, this requires the combination of team training and sophisticated technology.
Detecting Counterparty Behavior with QuantaVerse’s Advanced Technology
AML case investigations traditionally center on the focal entity and their most active counterparties. However, limiting the circle of inquiry investigators may miss suspicious counterparty clues and any related risks, leaving financial institutions vulnerable.
Five Best Practices of Adverse Media Monitoring
Financial institutions and banks need to be aware of all degrees of risk that their clients may bring, ranging from a third party with a damaged reputation, to one involved in organized crime. This means conducting customer due diligence and Know Your Customer protocols to complete a necessary risk assessment, with the help of a well-trained compliance team and advanced technology.
Understanding global corruption and how to prevent it
Corruption can lead to ethical and reputational problems at a private and public level, heightening the need for recognition across the globe about how to both report and prevent it. At the end of 2021, the Biden Administration announced their plans for an anti-corruption strategy to tackle corruption’s ‘ability to corrode democracy’. This echoed other foreign governments around the world which have sought methods to mitigate risk and combat corruption. There have been developments across the globe to combat corruption in recent years, which helps draw conclusions for financial institutions on how to mitigate risk; we can offer solutions to help with these risks.
FinCEN Issues Advisory on Kleptocracies and Foreign Corruption
On April 14th, the Financial Crimes Enforcement Network (FinCEN) issued an advisory on kleptocracy and foreign public corruption. This alert urges financial institutions to make a concerted effort to detect any proceeds of Russian or other foreign corruption. This foreign public corruption includes bribery, embezzlement, extortion, and misappropriation of public assets. This guidance comes following the sanctions against both entities and individuals after Russia’s invasion of the Ukraine.
What are the money laundering risks surrounding migrant smuggling?
Migrant smuggling arises due to global conflict, including fleeing from war, political instability, and violence, as well as a yearning for better opportunities and quality of life. This desire is capitalized by smugglers to use migrants as a source of profit, with this illegal industry having estimated annual profits exceeding $10 billion, according to the Financial Action Task Force (FATF). More recently, the disastrous conflict happening in Ukraine has forced citizens to flee and seek refuge in neighboring countries.
