Addressing AML Concerns

Addressing AML Concerns

Bill North

Head of Global Sales at Pelican

Views 448

Addressing AML Concerns

14.10.2016 02:30 pm

In the run up to Sibos an interview on CNBC Europe with UBS Group CEO, Sergio Ermotti, discussing Anti-Money Laundering and Know Your Customer policies caught my attention.

Covering AML and KYC, Sergio went to great lengths to describe his company’s policies as robust and trusted. Given recent issues at UBS, hearing this may be of comfort to regulators and concerned customers, but it seemed strange that a bank should concentrate so much on a service that for many is standard.

Equally strange was that UBS should feel the need to ‘defend’ the bank’s AML and KYC capabilities, while only a minor part of the interview focussed on the developing markets in Asia, which would surely be a preferred topic of conversation.

So why is there a need to be so defensive?

On the one hand, you could be forgiven for thinking that a CEO’s time is better spent focussing on innovation, or how they are going to take advantage of new businesses opportunities.

On the other it is good to hear that a CEO is concerned about the AML and KYC strategies in their firm – even if jolted to do so by a piece of bad publicity. Ensuring these policies are compliant and up to scratch is vital in the face of increasing regulation.

In fact, it is ‘background’ pieces of work such as these policies that will matter for companies in established markets almost as much as exploratory work into new business fields. The potential for serious damage to be inflicted on a company by overlooking this essential work will only increase over time.

The lesson from this interview was simple: the crucial work behind the scenes in areas such as AML and KYC cannot be ignored. A range of new technologies and talent can be brought to bear against this continuing issue, and embracing technologies such as artificial intelligence can simplify this, automating vast portions of the process and help to form part of a broader strategy of compliance.

Banking professionals should take heed – otherwise I suspect that Sergio Ermotti will not be the last bank CEO to speak about anti-money laundering strategies so publically.

Latest blogs

Shuvo G. Roy Mphasis

Reboot 1.0: How financial services technology can enable the supply chain to support a post-lockdown boom

Ground control and Captain Tom When veteran Captain Tom Moore decided to walk one hundred laps of his garden before his 100th birthday to raise funds to support NHS heroes battling Covid-19 from the frontline, he never imagined that he would Read more »

Lisa Gutu Salt Edge

Building a PSD2 compliant channel: challenges and opportunities for financial institutions

PSD2 obliges ASPSPs including banks, e-wallets, prepaid cards and other companies that offer payment accounts to provide at least one channel for secure communication with third party providers (TPP). Even neobanks or e-money institutions, including Read more »

Thomas Pintelon Capilever

Credit origination - A lot of innovation on the horizon

While consumer credits are becoming more automated and user-friendly to request, all other credits are often still very manual and labor intensive to originate. In this (relatively long) blog I will try to give a description of the (potentially Read more »

Kelly Kearsley

Time Card Theft is a Big Problem. Here's How to Stop It.

Trust is at the core of every employer-employee relationship. You trust your people to do their jobs, and they trust you to compensate them for their work. Most of the time, it works. However, there's always the person looking to bend the rules or Read more »

Daria Afanasyeva UTP Merchant Services Ltd

Cybersecurity – Online payments are getting more secure

Ever since we've been able to buy anything we need with just a click of a button on our laptops or phones, online sales have been consistently increasing each year. Just last year, the total value of UK retail sales was £394 billion, with an average Read more »

Related Blogs

Zac Cohen Trulioo

FCA Report Calls for Global Solution to Tackle Money Laundering

The 2019 Financial Conduct Authority’s (FCA) annual report, released in July, revealed, as expected, the need to reinforce the UK’s financial markets by making it hostile to money laundering criminals. Approximately £100bn[1] is laundered through Read more »

Shakir Ladak Alpha Insight

Anti-money Laundering is a Risky Business Without True Insight

Globally, fighting financial crime remains a high priority for governments and regulators, with the International Monetary Fund estimating that money-laundering (ML) accounts for between two and five per cent of the world’s GDP. Hundreds of billions Read more »

Karunakar Mohapatra CustomerXPs

Financial Mecca Tightening The Screws On Anti-Money Laundering!

“Breaking News: Singapore to use data tracking against money-laundering”. What bearing does this headline have on a safer and more secure banking system?  The 1MDB fiasco Let’s rewind to 2015 and 1Malaysian Development Berhad – a Malaysian fund set Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel