Topics up for Discussion include Anti-Money Laundering and Fraud Management
Wolters Kluwer Financial Services’ Regional Director in North Asia, Michael Thomas, will offer his insights on anti-money laundering (AML) and fraud management this week. Speaking at the First Advantage South Asia Pacific Client Board in Singapore on Thursday April 30, he will outline key challenges that financial institutions are facing, providing a risk and compliance perspective.
“Firms need end-to-end AML solutions to detect flows of money laundering thereby reducing risk across the enterprise,” Thomas noted. “Flexible rule sets and risk models that can cover all AML scenarios are essential to meet regulatory conditions in every jurisdiction in which a firm operates. This reduces compliance costs, providing enterprise-wide visibility and intelligent detection to accurately assess and respond to any potential threats, minimizing risk to the firm.”
Topics to be addressed by Thomas include:
- Name checking: It is a legal obligation to name check customers and visual verification alone cannot be relied upon, especially in global firms that are subject to multiple lists in each jurisdiction.
- Assessing customers for risk of money laundering: This is time consuming and increasingly objective-based, requiring a consistent process of assessment with the overhead costs increasing as a business grows. Because customer information does not remain static, records must be managed and kept up-to-date to ensure that a firm truly knows it customer.
- Monitoring customer transactions: It is essential to ensure this is done over a long period (at least 12 months or longer) to identify any potentially suspicious change in activity. It is, however, an impossible task without the automation and retention of extensive historical data that is not kept in core trading systems.
- Ensuring compliance with AML regulations: This is an enterprise-wide operation requiring distributed solutions accessing centralized data.
Many governments around the globe have already established comprehensive anti-money laundering regimes, increasing awareness and providing the necessary legal and regulatory tools to authorities charged with combating the problem. This inevitably imposes a requirement on all financial firms to monitor and report any suspicious activity to the regulatory authorities, usually backed-up with the risk of fines, regulatory sanctions and reputational harm.
“In addition to a system to perform these complex checks, financial firms need the long-term service and commitment of a global partner, such as Wolters Kluwer Financial Services, which operates within the firms’ local financial community. This partner should also have the global reach to service major international institutions, helping to manage and reduce the risks inherent in cross-border business. A commitment to keep customers compliant in the long term is clearly vital,” Thomas added.
With more than 40 years of experience, Michael Thomas is an expert in financial risk management, regulatory reporting technology and anti-money laundering, with strong insight into the Asia Pacific market.
About Wolters Kluwer Financial Services
Wolters Kluwer Financial Services provides customers worldwide with risk management, compliance, finance and audit solutions that help them successfully navigate regulatory complexity, optimize risk and financial performance, and manage data to support critical decisions. With more than 30 offices in 20 countries, our prominent brands include: AppOne®, AuthenticWeb™, Bankers Systems®, Capital Changes, CASH Suite™, GainsKeeper®, NILS®, OneSumX®, TeamMate®, Uniform Forms™, VMP® Mortgage Solutions and Wiz®. Wolters Kluwer Financial Services is part of Wolters Kluwer, which had 2014 annual revenues of €3.7 billion ($4.9 billion), employs 19,000 employees worldwide, and maintains operations in over 40 countries across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.