The Impact of Money Laundering on Customer Due Diligence

The Panama Papers scandal of 2016 led to the leaked individuals’ names and associations being scrutinized by governments in the UK, Germany, France, Italy, Spain and Australia, among others, which is unsurprising given that the financial services industry is in the process of preparing for new, stricter regulation.

The Common Reporting Standards regulation, the Fourth Money Laundering Directive, the Foreign Account Tax Compliance Act and Financial Action Task Force recommendations on money laundering that have been proposed and enacted in Europe and the US are intended to strengthen the AML regulatory environment and increase pressure on institutions to comply.

Financial institutions need to do more to be compliant with CDD and KYC processes and, in particular, the need to check the internal security of client data. The is also applies to the provision of retail and not-for-profit services, and the need to minimise a business’s exposure to risk as a result of failure to comply with AML regulations.

Scope

The report is divided into three chapters, which cover the following areas:

Overview of Risk Management

Key Operational and Technological Trends and Spend

Opportunities in Client Onboarding and Best Practice

Key Highlights

Emerging economies are upgrading their compliance procedures to bring them in line with international standards.

Institutions have been taking new measures such as establishing committees to focus on financial crime to ensure everyone in the organization is accountable for AML compliance.

Firms are investing in technology solutions, integrated platforms, cloud technology and data analytics to meet compliance obligations and increase efficiency in operations.

The emergence of new methods of financial crime has created a challenge for regulators, technology firms and institutions, requiring significant improvements in overall IT systems.

Reasons to buy

Understand key factors that drive governments and regulatory bodies to formulate and implement AML regulations.

Be informed of the key operational and technological trends and challenges that institutions face due to the rapid rise in money-laundering activity and frequent regulatory upgrades.

Gain insight into key vendors operating in financial risk management, and analyze best practices adapted by financial and non-financial companies to combat money-laundering activity.

Be informed about challenges and opportunities in client onboarding available to providers.

Companies mentioned

HSBC, DBS, UBS, Gibraltar Private Bank and Trust, Deutsche Bank, Commerzbank, Wells Fargo Advisor, Standard Bank, Tokyo Mitsubishi-UFJ, Axis Bank, HDFC Bank, ICICI Bank, Atlas ...