ComplyAdvantage, a global data technology company transforming financial crime detection, has announced the availability of the firm’s new Anti-Money Laundering (AML) Guide For Digital Banks. The guide provides firms – including neo and challenger banks – offering digital-first services with a clear understanding of the regulatory challenges they may face; how best to structure an effective, customer-centric AML program and; real-world examples of success stories from digital-first banks.
The phenomenon of emerging banks offering digital-first services is redefining how consumers and businesses around the world access, manage, invest or transact with their money. And, while these services that have been designed around speed and convenience have attracted hundreds of millions of customers en masse, they have also become attractive hotbeds for financial criminals.
Criminal organisations have shown their willingness to exploit the compelling features and benefits that digital-first banks offer to line their own pockets, launder illicit money and fund terrorism worldwide. As a result, regulators have begun to step up their scrutiny of the industry.
As a leading reg tech innovator, ComplyAdvantage is dedicated to helping digital-first banks navigate through the growing complexities of the AML/CFT regulatory landscape so they can meet their regulatory requirements while delivering a seamless customer experience.
“As the provider of an innovative money app, we recognised the importance of implementing rigorous AML and risk management processes right from the start,” said Chisato Kamimura, Head of Compliance at sync. “By working with ComplyAdvantage, we not only have a better understanding of the regulatory landscape but we also have the right tools and program strategies to ensure the highest level of customer vetting and transactional integrity.“
The new AML Guide For DigitalBanks highlights key compliance considerations that include:
- Global Policy Trends: The latest guidance from the Financial Action Task Force (FATF), one of the most influential organisations on the world stage when it comes to fighting financial crime.
- Regional Policy Trends (North America, European Union and Asia-Pacific): How different countries have treated the rise of challenger banks including charter and licensing requirements and specific regulatory requirements in their jurisdictions.
- Risk Assessment Considerations: A bank’s risk-based approach hinges on conducting a thorough, accurate risk assessment program as early as possible. The guide covers the risks inherent in the products or services used; risks posed by the individual or entity (e.g., a cash-intensive business, a foreign entity, or a politically exposed person) and, lastly: risks posed by the specific jurisdiction or sub-jurisdiction (e.g., where the bank operates and where the customer is located) and more.
- Success Stories: Examples of digital banks and best-practices for AML program implementation.
“Our research is intended to help both customers and the financial services industry by providing insights with prescriptive measures so they can maintain the greatest level of risk management integrity, “ says Charles Delingpole of ComplyAdvantage. “With areas from sanctions to cryptocurrencies evolving at such a rapid pace, what you don’t know can truly hurt your business.”
ComplyAdvantage offers a true hyperscale financial risk insight and AML data solution that leverages machine learning and natural language processing to help regulated organisations manage their risk obligations and prevent financial crime. The company’s proprietary database is derived from millions of data points that provide dynamic, real-time insights across sanctions, watchlists, politically exposed persons, and negative news. This reduces dependence on manual review processes and legacy databases by up to 80% and improves how companies screen and monitor clients and transactions.