Financial Crime is increasingly affecting the bottom line of organisations and as such is considered a major business risk. Its prominence has been increasing both for organisations and for governments.
Anti-Money Laundering & Counter-Terrorism Financing
The definition of Financial Crime differs across regulators, however all definitions tend to encompass all that is related to illegal economic activities.
So, what are then the broad categories of Financial Crime?
- Money Laundering.
- Bribery & Corruption.
- Terrorist Financing.
- Market Manipulation.
- Fraud.
- Insider trading.
The prevalence of Financial Crime has been exacerbated in recent times making it clear that financial crime as a critical risk for organisations. The UK, US and Europe are increasingly reinforcing existing regulations and introducing new ones to combat Financial Crime.
Management Solution’s value proposition and framework for Financial Crime covers 5 key capabilities across the organisation:
- Organizational Structure (e.g. creation of QA functions and strengthening of the Regulatory engagement role).
- Governance & decision making (e.g. definition of accountabilities up to Executive level for the 1st and 2nd Lines of Defense and creation of a specialized second line of defense function).
- Data Infrastructure & Analytics / MI (e.g. development of Machine learning models to score and prioritise alerts, and identify false positives).
- Business Processes (e.g. incorporation of a closed feedback loop and Agile delivery that can incorporate learnings from the alerts analysed into the journey).
- Technical Infrastructure (e.g. supporting full integration of vendor solutions to both transactional systems and workflow tool).