What a Real-Life Money Mule Teaches Us of Money Laundering Typologies
We speak to the victims on the other end of financial crime, to lift the lid on the red flags behind trafficking. We unpack how these signs go undetected and how financial institutions and banks can do more to uncover money laundering patterns. By Abhishek Cha...
Cryptocurrency Money Laundering: 5 Latest Compliance Developments
The discussions about the money laundering risks of cryptocurrency are seemingly on the rise. While these currencies are yet to match the traditional financial crime methods in terms of volume and size, the growing number of cases of money laundering through cryptocurrency make financial regulators uneasy. They appear to be patching the holes to catch offenders who have been making use of the lack of control and regulation over these digital currencies in many regions. In this article, we are looking at some of the latest news where regulators and crypto players are seen working towards better compliance measures to avoid money laundering through cryptocurrency. 1. Switzerland’s measures to address cryptocurrency money laundering risk Sw...
AI Uptake for AML Compliance on the Rise despite COVID-19
Research suggests that financial institutions are increasingly adopting technologies such as AI and machine learning (ML) for anti-money laundering (AML) compliance in response to the COVID-19 pandemic. A new study by KPMG, SAS and the Association of Certified Anti-Money Laundering Specialists (ACAMS) found that a third of financial institutions are accelerating their AI and ML adoption for AML purposes.
The report based on a survey of more than 850 ACAMS members revealed that AI and ML have emerged as key technologies for compliance professionals, streamlining the AML compliance processes.
Why now more than ever?
In the anti-money laundering (AML) compliance space, the potential for artificial intelligence (AI) is immense. Increasing complexity of AML threats during the COVID-19 times, ever-increasing volumes of data to analyse, false alerts rising to unmanageable levels, ongoing reliance on manual processes and the ballooning cost of compliance are prompting many financial institutions to adopt modern technology and improve their risk profile.
Key takeaways from the survey
The survey primarily asked each respondent how their employer is using or has used technology to detect money laundering. Here are some of the key findings of the survey.
1. Increasing AI/ML adoption
More than half (57%) of respondents said they have either deployed AI/ML into their AML compliance processes, are piloting AI solutions, or plan to implement them in the next 12-18 mont...
Regulatory compliance in Asia: Reasons behind the rise of Regtech
It’s been more than a year and a half since the COVID-19 pandemic wreaked havoc across the world and changed the day-to-day operations of businesses. Financial institutions and their regulatory compliance teams have not been free from the effects of the pandemic. As remote working has become the new normal, there have been bottlenecks in effectively carrying out compliance operations. On top of that, financial crime threats have been increasing as perpetrators made ‘good’ use of the pandemic situation to adapt their strategies. To solve these issues, financial institutions are increasingly turning to regulatory technology or Regtech.
While the reliance on technology to manage regulatory compliance operations rose across the globe, organisations based in the Asia-Pacific (APAC) are seemingly not shying away. The demand for Regtech is on the rise in the region in line with its recent surge in regulatory requirements, according to a report released by the Irish government-backed venture capitalist Enterprise Ireland and Kapronasia. According to Facts and Factors research, the global RegTech Market was estimated at USD 5.31 billion in 2019 and is expected to reach USD 33.1 billion by 2026, a growth rate of over 20% per year. The APAC region is expected to have the highest growth rate over this period.
Why is Regtech booming in APAC?
With its growing economic importance, the APAC region is expected to become the new engine of Regtech growth and innovation in the future, according to the report. It cites reasons such as “the rapid development of emerging Asian ma...
AML Fines 2021: Regulators Continue to Be Strict with Enforcement a...
Research revealed that global regulators have remained strict with financial crime and sanctions compliance failings despite the COVID-19 pandemic. Governance and risk consultancy firm, Kroll says anti-money laundering (AML) fines in 2021 are likely to reach the high levels seen in 2020 and 2019, indicating the need for AML compliance officers to be vigilant more than ever. Kroll found that total fines for AML and sanctions compliance shortcomings rose significantly in 2020 compared to 2019. Regulators’ punitive measures were stricter despite the COVID-19 pandemic. Due to this, many financial institutions faced operational constraints and potential compliance lapses. Soaring numbers According to Kroll’s latest Global Enforcement Review, ...
How sharing information between institutions helps detect money lau...
The Financial Action Task Force (FATF) says institutions should be sharing information between them to detect money laundering more easily and comply with the Anti-Money Laundering (AML) and Countering the Financial of Terrorism (CFT) requirements. Money laundering i...
