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Regulatory approach in Financial Crime is shifting

Alongside Compliance, financial crime and anti-money laundering (AML) have been the fastest growing areas in financial services. Financial crime has recently gone through an extensive period of new legislation across investment banks, private banks and asset management but we are hearing from our clients that this is set to change.

There will be less new legislation and more focus on how effectively it is being implemented.

Regulators are going to be rigorous in their efforts to ensure everyone is adopting strong Anti-Financial Crime (AFC) controls, putting personal liability at stake.

The knock on effect has meant that firms are:

Getting more ’tec’ focused

Responses to financial crime have to evolve with the progressively complex and sophisticated attacks and this relies on ever advancing technological solutions. Firms are striving to get the most efficient technology in place as a means of managing the huge costs of fighting financial crime. Transaction monitoring and data analytics are key areas set to benefit from technological development.

Fin Tech companies have a real opportunity here to use their technology to be part of the solution. As Blockchain gains momentum, the use of digital identity technology and Biometrics could have a real impact on preventing and detecting financial crime.

Utilising data analytics more than ever

As technology expands rapidly across the financial services, it brings with it more data and more opportunity to find answers within it.

The emergence of data lakes also gives analysts further scope for data based detection and prevention of financial crime.

Adopting a more sophisticated use of Artificial Intelligence

Machine learning techniques are being applied to anti-fraud models and surveillance is ramping up with more sophisticated voice surveillance and trade monitoring to protect against market abuse, anti-bribery, anti-fraud and corruption controls.

Being more collaborative across the industry

Onus has spread beyond banking, looking to insurance, asset management and private wealth management to play significant roles in a conjoined effort against financial crime. The Joint Money Laundering Steering Group (JMLSG) introduced last year will support sharing best practice across all of the financial services.

Honing in on specialists

We’re seeing an upsurge in clients moving away from generalist roles and looking for dedicated financial crime and AML subject matter experts (SMEs).

Understanding this shift and the impact it has on a team’s requirements is where a company with Danos Associates’ expertise and unparalleled network of financial crime professionals can really add value.

If you’re looking to enhance your financial crime programme by bringing in the right skill-sets and experience, Danos Asscociates can deliver on both a permanent and consultancy basis. To discuss your hiring needs please give me a call.

+44 (0) 20 7371 8332 dspearman@danosassociates.com

Denis Spearman

Partner, EMEA Head of Compliance & Financial Crime Practice

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