Although there are political signals that the current U.S. administration will provide financial institutions regulatory enforcement relief in comparison to years prior, this is not the case. As evidenced by the consistent penalties enforced over the past several years, AML/BSA regulatory enforcement remains a top priority.
AML and Financial Crime
May 29, 2019
More and more, regulators are examining AML and terrorist financing monitoring software solutions to see if they are tuned correctly; and citing financial institutions who fail to meet the regulatory standards. One issue for both regulators and these institutions is the creation of excessive volumes of “false positive” activity alerts, or alerts on activity that after evaluation, is not determined to be suspicious.
May 1, 2019
On April 18, the Financial Crimes Enforcement Network (FinCEN) announced that they have imposed their first-ever penalty on a peer-to-peer cryptocurrency exchange for violating AML regulations, among other violations.
April 26, 2019
Every anti-money laundering (AML) program should be reviewed periodically to confirm that the program is performing efficiently and effectively. Analytics can play a big role in this review by providing new insights that support evidence-based decision-making.
April 16, 2019
Michael Held, Executive Vice President of the Legal Group at the Federal Reserve Bank of New York, spoke at the 1LoD Summit in New York on April 2, 2019.
April 10, 2019
When it comes to anti-money laundering (AML) transaction monitoring, financial services firms are under more pressure than ever to prove that the approach they are taking is working. Regulators want to see obvious evidence that firms are generating the right level of suspicious activity reports (SARs) for their size, geography, and business types, usually in the form of statistics and reporting. In turn, boards and senior management teams are now demanding to see this same information to be sure the firm is meeting its compliance obligations. As a result, AML transaction monitoring analytics are in more demand than ever before.
March 6, 2019
Press coverage this week picked up a story about the Financial Conduct Authority (“FCA”) warning UK hedge fund managers of imminent spot checks on their financial crime controls.
February 27, 2019
The Three Lines of Defense Model has gained popularity as the de facto model for organizing governance, risk management and internal control roles and responsibilities since the Institute of Internal Auditors (IIA) published “The Three Lines of Defense in Effective Risk Management and Control,” position paper in 2013. The IIA recently announced that they would embark on a key project to refresh and update this document.
February 13, 2019
Analytical segmentation modeling (ASM) is one way to design an effective AML monitoring strategy through the development of a quality model to achieve segmentation. ASM involves combining customer or bank accounts with similar properties and transaction behavior to make it easy for banks to formulate risk signals based on their various classes of customers. This model sets threshold levels for the segments monitored by identifying patterns based on the groups of similar customers and/or accounts.
December 20, 2018
Technology is an essential weapon for financial services firms in the battle against anti-money laundering (AML). The Office of the Comptroller of the Currency (OCC) issued a joint statement with other regulators earlier this month encouraging financial institutions to try new and innovative ways of combating AML. Three types of technology – advanced analytics, software robots, and artificial intelligence (AI) – could help make it easier to detect and prevent money laundering, as well as comply with existing regulations and follow the guidance of this joint statement.
December 14, 2018
While the financial institutions have the desire to improve the data quality and availability, data governance is often driven by external regulations to implement a program to ensure requirements outlined in DFS Part 504 regulation are met.
October 26, 2018
The US Office of the Comptroller of the Currency (OCC) has indicated that it will be focusing on the effectiveness of anti-money laundering (AML) systems and controls after including the topic on its list of FY 2019 annual priorities. For OCC-regulated banks, this means exams will concentrate on how up-to-date AML and Bank Secrecy Act (BSA) programs are with evolving threats and new rules.