Robust financial crime controls (anti-money laundering (AML) and counter terrorist financing (CTF)) are essential for organisations of all sizes to ensure they are protected from the impact of financial crime.
Failing to implement effective controls can have serious consequences, including financial penalties, regulatory sanctions, reputational damage and even criminal prosecution. In 2022, the Financial Conduct Authority (FCA) fined Santander £107,793,300 due to serious and persistent gaps in their AML controls.
In part two of our financial crime series, we unravel the essentials of establishing effective financial crime controls, how to implement them and the benefits they bring.
Ensuring that your financial crime controls aren't just in place but are effective is crucial in the ever-evolving landscape of financial crime (Read our previous blog in this series here). Effective controls not only mitigate risks but also contribute to regulatory compliance, protect your organisation's reputation and safeguard your customers.
Here are some of the key components that go into building robust financial crime controls:
Remaining protected against financial crime risks isn’t a one-and-done exercise; it's an ongoing process. Regularly evaluate the efficiency of your financial crime controls and make necessary adjustments. Consider implementing the following:
Continuous monitoring processes will help you stay ahead of emerging risks so you can adapt your controls quickly.
Leverage data analytics tools to enhance the precision of your controls. Analysing large datasets can unveil patterns and anomalies that might go unnoticed through traditional methods.
Conduct regular audits of your processes to identify areas for improvement. Audits not only help ensure your controls are effective but also align with the latest regulatory requirements.
In part three of our financial crime series, we ask you to take a hard look at your financial crime compliance and assess whether you're meeting your obligations or falling short.
If you're unsure about the effectiveness, efficiency or standard compliance of your financial crime controls, Brighter is here to help you. With years of experience guiding clients through the intricacies of financial crime control management, we can assist you in understanding, designing, deploying, tuning, remediating and embedding good practices. For a confidential discussion on anything financial crime control-related, please contact Simon Davis today.