How Banks Can Excel in Financial Crimes Compliance


At most large banks, the legacy compliance processes designed to fight financial crimes such as money laundering have grown so complex as to be barely manageable. Multiple iterations, multiple handovers and too many manually controlled processes prevent banks from attaining truly effective or efficient compliance systems. Excessive complexity has led to greater operational risks and a spate of large fines.

Even as bank supervisors heighten their scrutiny of bank compliance, fraud and money-laundering schemes grow more sophisticated. Banks have no viable choice but to upgrade their crime-detection and crime-fighting capabilities. Their arsenals will increasingly include more powerful analytical models, artificial intelligence and the help of regtech specialists. Yet with each new technology and partnership, banks risk making their compliance operations still more complex. Banks that eventually excel in compliance will be those that strike the right blend of people and machines, build a seamless end-to-end compliance process, and adopt Agile ways of working in order to make the most of regtech expertise.