FCA Report Calls for Global Solution to Tackle Money Laundering

FCA Report Calls for Global Solution to Tackle Money Laundering

Zac Cohen

General Manager at Trulioo

Views 922

FCA Report Calls for Global Solution to Tackle Money Laundering

28.08.2019 11:15 am

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 the UK every year and over the last several weeks a severe clampdown has taken place across the UK to stem the destructive plague that is money laundering. Lloyd’s bank recently froze 8,000 unverified offshore accounts[2] after a money laundering crackdown and a recent embargo on suspected money laundering has resulted in 51 bureaux de change and currency transfer businesses being raided by police[3].

Additionally, the increase in criminals turning to modern technologies and alternative financial systems has reemphasised the call for greater transparency in money laundering standards. Coincidentally, the ease with which money can easily be moved between several bank accounts around the world in a matter of hours, alongside limitations in existing legislation aimed at countering money laundering, has meant authorities and businesses fail to keep pace with the ever-developing tactics used by criminals.

Effectively plugging these gaps is no easy feat. It requires placing a greater emphasis on collaborative approaches to data sharing across borders, thus increasing the transparency of financial transactions as they originate. Speedy access to information around the origins of transactions and the identities of transacting parties is a key tool that may be used to increase trust and safety, therefore limiting the likelihood of money laundering and instances of identity fraud.

Movement of cash is the life-force of money laundering. By verifying the entity and checking the key beneficiaries against watch lists, organisations have access to information that can help them differentiate between legal and illicit transactions to avoid doing business with criminals. The availability of real-time data sourced from public and private networks offers a convenient and modernised way to identify and verify the account holders. This notion of cross-border collaboration and shared data eliminates the opaque nature of financial transactions and empowers organisations to stay one step ahead of criminals and effectively outsmart them.

The outlook for Anti-Money Laundering (AML) and Know Your Customer (KYC) monitoring has seen a shift towards automated systems and artificial intelligence empowering companies to search through millions of documents instantaneously through a single touch point -- a powerful tool for the successful authentication of personally identifiable information. Universally, businesses are enjoying the benefits of a global ecosystem precipitated by the expansion of the internet.

Financial transactions are a mainstay of the new global online economy; therefore, the obligation falls on organisations operating within the ecosystem to uphold the highest levels of anti- fraud and AML-compliance identity verification standards and remain responsible in how they verify business and customer data.

Due to the ability of fraudsters to continuously adapt their nefarious ways, organisations are required to have procedures in place to anticipate and deal with various emergency scenarios. The ability to review and adjust these processes on an ongoing basis and stress-test them is a sure-fire way to ensure they are capable of defending your business.

 

 

 

Latest blogs

Will Hurst Monevo

How to prepare for a cashless society

THE UK ranks as the world’s third most cashless country behind Canada and Sweden. Will Hurst, Head of Commercial Development at Monevo, part of Quint Group, has some thoughts on how to get ready for a world without paper and coins. 1 – Invest in Read more »

Laura Francis Form3

Why Payments- as-a Service is the first choice for Financial Institutions

More and more Financial Institutions are choosing to outsource their mission critical payments infrastructure over building or licensing legacy technology. The pace of change within the global payments technology space is still at full speed with no Read more »

Myles Dawson Adyen UK

Three ways to win shoppers during Chinese New Year (and beyond)

For us in the West, New Year feels like a distant memory. But, while we’re in the midst of ‘Dry Veganuary’, celebrations in China are just about to kick off. Read more »

Rodrigo Zepeda Storm-7 Consulting Limited

Persons With Significant Control: PSCs

From 30th June 2016 the ‘People with Significant Control’ Companies House register went live. This means that certain United Kingdom (UK) companies, Limited Liability Partnerships (LLPs), Societas Europaea (SE), and Eligible Scottish Partnerships ( Read more »

Philippe Carrel Finmechanics

LIBOR to survive the RFRs

Neither IBORs nor RFRs; firms should ready up to work with both types of benchmarks and reference rates for the foreseeable future.  The quantitative finance focused publications of 2019 have highlighted that replacing forward looking term rates ( Read more »

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