Financial Economic Crime Data analytics: towards Compliance 3.0?

Source: EY.

Will next generation Transaction monitoring enable Compliance 3.0?Managing Financial Economic Crime risks (“FEC risks”) is an ongoing challenge for Banks. The FEC requirements mitigating these risks are not just limited to policies and procedures, Integrity risk assessments (“SIRA”) and KYC/AML procedures. Banks should also be capable of showing that the FEC Compliance measures are effective.

The recent “concept guidance” on Transaction monitoring of the Dutch Central Bank (“DNB”) provides further insight into the effectiveness of the programs. This was drafted after the thematic review undertaken by the DNB performed in 2016. It can be concluded that manual transaction monitoring and other compliance testing is “old school, besides that it is also time consuming and costly. Today is the era of Compliance 3.0, where Compliance is driven by the use of data analytics. >>