A white paper produced by Fundtech outlines best practices to help banks comply with the global patchwork of anti-money laundering (AML) regulations and mitigate the risk of compliance breaches.
The global transaction banking software specialist said that the white paper, entitled
‘Reducing the Risk and Cost of Payments Compliance for Banks’
, also offers recommendations for maximising automation, efficiency, and straight-through-processing (STP).
Fundtech comments that money laundering poses an enormous and increasing threat to banks’ financial well-being, ability to comply with regulation, and reputation. Despite record spending on AML compliance systems, most transactions highlighted as suspicious turn out to be ‘false positives’ that lead to even greater costs and workload within banks.
Best practice to minimise false positives and achieve compliance goals can be broadly divided into three areas: know your customers, know your transaction, and know your process.
“By following best practices, banks can achieve compliance at a reasonable cost,” says Marco Lauber, senior vice president (SVP), global presales at Fundtech and co-author of the white paper.
“But in a world of increasingly savvy criminals and rapidly changing regulation, the challenge becomes staying compliant. Banks must remain vigilant, and select a technology partner that will keep them on the leading edge of managing regulatory risks.”
A complimentary copy of the white paper can be downloaded
here
.