As we start off another year, let’s revisit my 2021 AML predictions to see how they held up, and explore what 2022 may hold.
Within the past year, many financial services organizations (FSOs) grappled with the impact of the pandemic, and in the case of fraud, with corruption on payments related to the reimbursements afforded to consumers and businesses during this timeframe – the perfect target for fraudsters. As we move into 2022, emerging issues have already begun to fall into the sights of financial services firms. Post pandemic, as FSOs pivot from storefronts to a dominant online, digital environment, the importance of customer satisfaction and frictionless customer experiences have become even more critical to retaining customers and competing in a digital world.
Recently, we’ve covered the basics of what money laundering is and how it affects the global economy, as well as the origins of anti-money laundering (AML) and how a strong AML program can truly elevate the capabilities of any financial services organization (FSO).
Payment fraud. Account takeovers. Money laundering. Clever financial criminals have many ways to profit from their victims.
It’s never been more important for financial services organizations (FSOs) to truly understand who they are doing business with. Knowing who is who and who is related to whom is critical for identifying bad actors, ensuring compliance and effectively managing risk.
As the world grows more accustomed to conducting business digitally, the need for the ease and convenience of faster payments is considered vital. However, as the general population adopts faster payments more readily, it gives rise to fraudsters utilizing new tactics to illicitly acquire both funds as well as access to accounts.
On September 9, 2021, the FCA sent a ‘Dear CEO’ letter to firms carrying out trade finance businesses. The letter informed firms of their requirement to conduct a financial crime risk assessment based on significant issues the FCA found, exposing firms to unnecessary risks.
Understanding your entities and their relationships is a crucial part of any risk management program. Over the years, the regulated sector has increasingly adopted new financial crime compliance systems and is now starting to use the latest technology to help monitor and detect suspicious activity effectively. However, in their current form, these controls are not sufficient on their own, as there is frequently still a gap in effective financial crime compliance. These shortfalls are often traced back to an organization’s data management processes and their ability to provide a trusted understanding of the entity and their relationships. How can the industry continue to understand entities better and efficiently identify links and relationships across their data while maintaining operational effectiveness?