• John Wilson, UK Managing Director at Avaloq


• 22.04.2022 03:15 pm
#banking #compliance

John Wilson, UK Managing Director at Avaloq, comments on an FCA review which found weaknesses in some challenger banks’ financial crime controls:
“That some challengers banks fall short of their more established rivals when it comes to financial crime compliance controls is perhaps unsurprising, but it is something they should urgently address. While it is encouraging that the FCA found evidence that the technology focus of challenger banks confers benefits when it comes to rapid client identification and verification, challengers need to leverage technology yet further to better know their clients and identify key risks.

“By leveraging AI, machine learning and automated compliance processes, challenger banks can better detect potential financial crime while increasing the speed at which they perform. An automated compliance solution can deliver anti-money laundering and know-your-customer checks ‘as-a-service’, enabling banks to quickly strengthen and scale up their controls without significantly expanding their middle office. As a challenger bank matures, its financial crime controls will grow in complexity, and automation will be vital to implementing robust and efficient processes, for example around sanction and embargo monitoring, and prevention of insider trading and market abuse.”