Laura Hutton

The UK's financial regulator has released a consultation paper that includes proposed changes to its guidelines on transaction monitoring. In this video, Michael Shearer, our Chief Solution Officer here at Hawk, has highlighted four areas of the consultation paper that he thinks will be particularly helpful for financial crime professionals. In summary, he mentions four points that the Financial Conduct Authority makes in relation to transaction monitoring: 1. The importance of a holistic view of customer behavior rather than just transaction-by-transaction analysis 2. The value of monitoring at multiple levels of aggregation (from transaction to linked-entity level) 3. The focus on better-quality alerts overall when replacing systems and the recognition that systems may not flag all the same events 4. The endorsement of exploring the use of new approaches to automated monitoring (e.g. network analysis or machine learning) Get in touch if you'd like to know more about Hawk's explainable AI for transaction monitoring. #aml #fincrime #financialconductauthority #fca #banking #uk #bankingtech #ai #transactionmonitoring #artificialintelligence #financialinstitutions 

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What's new at Xama AML? Last night we deployed our long awaited PEP, Sanctions and Adverse Media monitoring solution 🚀 We've worked on this for a long time and it's been a brilliant achievement by the team here. Why is our monitoring solution the best for accountants and bookkeepers? ⭐ It's completely configurable. ⭐ It's fully integrated with our existing platform, making it easy to manage monitoring across your updated client and contact list. ⭐ You now get additional information to help confirm or dismiss matches. ⭐ You can acknowledge events to ensure they have been seen as well as record any notes to keep an audit trail of decisions being made. And of course, there are already plans underway to integrate PEP, Sanctions and AM results directly into client risk assessments. Link in the comments to an upcoming webinar where I will be speaking about how to use monitoring solutions correctly as part of a risk based approach. 🤩 PEP, Sanctions and Adverse Media monitoring is available to all of our users, whether you are on a free, pay as you go, plan or subscribed to Xama Core. Have a look at our new training video showing off the new feature. https://lnkd.in/exJaiEY2 #amlcompliance

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So what do you have to do wrong nowadays to be held accountable for ‘shocking’ shortfalls, or is this now all about rapid revenue collection for the Treasury? Which part of the MLR’s and FCC rules were not understood and at what point were these ignored or waived when developing the business plan? Who made that decision and will they be held accountable? I’m afraid I just don’t believe that the FCA is concerned to combat crime anymore, and nor do I believe that things will improve until there is a material change in mindset. No one should be particularly surprised by these findings if you have been anywhere near new technology-based payment providers. There will be more to come I am sure….and lots more revenue!

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Finally - a FREE EOY KRI Template built by financial crime professionals for financial crime professionals 😊 Our CEO & Co-Founder, Natasha Vernier, who served as the Head of FinCrime at Monzo Bank, knew all too well how time-consuming an End-of-Year KRI report can be, especially when juggling dozens of other responsibilities 🫠. So she did the obvious thing and created a template that can be used to easily communicate to key stakeholders how well the KRIs are performing that year 😎 Just click the link below to download our End-of-Year KRI Template and streamline your compliance processes! 🚀 https://hubs.ly/Q02DzLhJ0 #Compliance #FinancialCrime #KRIs #RiskManagement #FreeTemplate #Cable #CableTech

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…so the SRA crackdown on #AML failings in Law Firms continues. I've met AML teams in 10 global firms this year - here's what I've observed👇 Preface - the analysts I've met are some of the most hardworking I've encountered and there is a universal understanding (at least at the non-senior management level!) of the importance of proper AML processes. That said, they all agreed there is more to do - both in their own firms and the industry as a whole. ...as you'd expect, my thoughts mainly revolve around willingness to engage with new technologies 😉 👤 AML team sizes are fairly large on a head-per-client basis, when compared to other regulated sectors. On the one hand, that's a good thing - however, it's masking some inefficient processes that better use of technology could eliminate, freeing up analyst time for valuable knowledge-work like deeper risk assessment. I'd estimate 50% of analyst time is still taken up by data collection and processing. 🤖 8 of the 10 firms were using the exact same tech/productivity stack and had been for years. Same company data provider, screening service, workflow system - the list goes on - and they're rarely integrated! System stability is a good thing...but I'd encourage firms to challenge the status quo and give the more innovative vendors a chance to disrupt the order. Firms like Legl, Intapp and of course, Kyckr all have services that can lead to 10x productivity improvements with the right integration - across KYB, UBO, CLM and other areas. 🤝 There needs to be better collaboration, data-sharing and mutual systems access between AML/Intake teams and other areas of the firm, like conflicts. This will help both to remove inefficiency but also lead to stronger risk assessment, earlier detection of red flags and better awareness throughout the customer lifecycle. ❗ There is still pressure coming from Partners to process cases more quickly (per previous SRA reports). In some ways this is no different from other regulated sectors, where there is constant pressure to improve average handling time and throughput, but the power dynamic at play here makes this is a particularly interesting challenge. Confident and resilient AML/intake leaders are a must! While the challenges are obviously very different, the Legal sector should start to look at Fintechs as a model for balancing AML compliance with efficiency. Admittedly, that sector continues to have its own regulator run-ins...but you only need look at examples like Alpha Group and their seamless onboarding experience or bunq and their success in implementing AI for transaction monitoring, to see the potential gains from a more open and explorative relationship with tech. #KYC #automation

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🔄 Three-quarters of UK banks are using obsolete systems to store employees’ voice and digital communications, putting them at risk of enforcement action as regulators crack down on record-keeping, reports Victor Smart. 📂 Banks must keep diligent records of employee communications but that’s only half the challenge. If pressed by regulators, they also need to dig these recordings out of storage. 🕰️ Yet exclusive research seen by Banking Risk and Regulation reveals that three in four UK banks are sitting on at least one ancient legacy recording system past its shelf life. One in 10 is grappling with five or more out-of-date systems. 🎧 Nearly half the survey respondents (45%) said a regulator had asked their firm to share recordings of communications between individuals in the last year. ⚠️ “As regulatory requirements become more stringent, the reliance on outdated record-keeping processes has the potential to expose businesses to significant compliance risks. Non-compliance with regulations can lead to severe penalties, legal consequences and reputational damage,” states Wordwatch, the voice data tech firm that commissioned the research. 👀 Read more below https://lnkd.in/dWGGDmfc #VoiceNote #OffChannelComms #Banking #BankingIndustry

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Read the latest article from the fscom team, 'UK financial crime compliance statistics: A roundup for 2024'. In this article, we draw out the key points from the 2024 edition of fscom's Fincrime Compliance Report, including: 🔹 Key financial crime compliance statistics 🔹 A year-on-year comparison 🔹 Mitigating risk within the most affected review and testing areas 🔹 How fscom can help Read the full article on the fscom website here: https://hubs.ly/Q02Zlm-P0 If you haven't yet had the chance to read our report, download your copy here: https://hubs.ly/Q02ZlmK00 #FincrimeComplianceReport #FinancialCrime #AML #CTF #fscom

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In 2024, why is it that #FinancialCrime prevention teams still don't have the right data? 🫣 We've been speaking to Matthew Neill about the need to move to a data-driven 'Generation 2' KYC/CLM model if firms want to properly tackle #FinCrime. Find out more on our YouTube channel: https://lnkd.in/ek9cfR2n

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Many UK firms start out with their fee-earners being responsible for collecting and processing AML as a part of client onboarding. This can lead to increased operational inefficiencies, heightened risks, and compliance issues. Sounding uncomfortably familiar...? Then catch our upcoming webinar with Amy Bell (Teal Compliance), Jessica Cath (Thistle Initiatives) and Simon Luke (First AML). The team will explore an alternative strategy increasingly adopted by firms – shifting to a centralised team to manage AML obligations. This allows firms to build a deep well of expertise, boost operational efficiency, and avoid inconsistencies.  What to expect: 📍 Decentralised vs. Centralised KYC Models: Many firms set out with AML being undertaken by front-line staff and/or fee-earners. We'll dish out the pros and cons of each. 📍 Change Management and Lessons Learned: Industry leaders discuss instances of teams that have moved from decentralised to centralised KYC onboarding. 📍 Is the Shift Right For Me?: We'll chat about the strategic considerations, discuss efficiency gains, risk mitigation, and how it all ties into making your operations smoother than ever. 📍 Interactive Q&A: Get your questions answered with candid insights from industry experts. Get ready to walk away not just informed but armed with practical insights to level up your KYC game while keeping the regulators happy. Save your spot now (link in comments)

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Are you feeling the strain of AML responsibilities falling on your fee-earners? You're not alone. Join our Head of Financial Crime, Jessica Cath, at First AML's webinar, featuring experts Amy Bell, and Simon Luke as they delve into a game-changing solution, transitioning to a centralised team to manage AML obligations. What to expect: 📍 Decentralised vs. Centralised KYC Models: Explore the advantages and disadvantages. 📍 Change Management & Lessons Learned: Hear real stories of successful transitions. 📍 Is the Shift Right For Me?: Strategise for efficiency gains and risk mitigation. 📍 Interactive Q&A: Get expert insights to your burning questions. Secure your spot now by registering via this link: https://lnkd.in/eyAeH368 #AML #KYC #Compliance #financialcrime #financialservices

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🎄 What’s on Your AML Wish List? 🥧Our very own Financial Crime Regulatory Specialist, Claire Rees DipFCP, DipAML, takes us on a festive journey (with mince pies) to define Transaction Monitoring requirements in our latest blog. 📜 🥧We share why assessing your needs first is the key to success—and how Jade ThirdEye can help you manage false positives, adapt to changing risks, and meet your compliance goals. https://lnkd.in/gkZrv6yT #AML #TransactionMonitoring #financialcrime #amlcompliance

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Capco’s Charit Arora had the pleasure of participating as a panelist at NICE Actimize’s annual ENGAGE financial crime conference in London, summing up the experience in our latest blog 👉 https://okt.to/7pbhyB With over 400 attendees from top banks, financial institutions, regulators, consultancies, and public sector bodies, this event was a hub of insightful discussions and groundbreaking #AI demonstrations. The theme, ‘AI in Action’, highlighted AI's accelerating impact on the financial services industry and the need to embrace AI as a powerful tool alongside human expertise to enhance financial crime detection. 🔑 Key points included: ◼️ Innovative AI use cases in alert management, voice call/email summaries, and #data cleansing. ◼️ The importance of balancing effectiveness vs. efficiency in surveillance efforts. ◼️ Emphasis on data completeness and the implications of #regulatory fines for surveillance failures. If you're keen to discuss how Capco can support your surveillance needs, from system implementation to risk assessments, connect with our Surveillance team! #cybersecurity

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It's Friday morning, and so I treated myself to reading a couple of news pieces to start the day. A colleague sent me this absolute gem from Accounting Web, which I'll preface by saying that if I had a £1 for every time a firm had remarked to me, 'Banks do AML checks; so how much more do we need to do?', I would have sufficient for a round-the-world cruise! Well, this article from Accounting Web addresses that question with crystal clarity. Moreover, the article includes a remark that echoes something else that our team encounters a dozen times every week, '...Metro was found not to have a sufficient understanding of the level of anti-money laundering (AML) risk...' A few upshots leap out from this story: 1. Trust no-one and do your own CDD. 2. Don't put all of your faith in an electronic or remote system; none of them, none, are infallible. 3. Invest in external, IN-PERSON, resource that will guide you through AML controls according to the UNIQUE risk profile of your firm. We support firms, in-person, all over the country. Get in touch: https://lnkd.in/eEGWmaCK #aml #SRA #regulation https://lnkd.in/eTTQeigZ

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New Consumer Finance Regulatory Gap Analysis Template With the 31 July 2024 deadline for implementing Consumer Duty quickly approaching and the recent Dear CEO letters published by the FCA, the focus of our latest gap analysis is the implementation of Consumer Duty for closed consumer finance products. The FCA expects Firms’ senior management to carefully consider the content of the letter and take steps to ensure their firm is compliant with the Duty by the deadline. Our Regulatory Gap Analysis is the perfect way to do this as it sets out the key themes of the letter and a series of thought-provoking self-assessment questions that firms should be asking themselves as they prepare for the upcoming deadline. https://lnkd.in/gxSH7efM

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I had the privilege of speaking on a panel at Financial Crime 360, where we discussed the evolving regulatory landscape and the critical role of combating fraud. The UK is leading the way, with new APP fraud regulations. It's a topic that resonates globally, as governments and organizations alike tackle the challenge of protecting customers while staying ahead of increasingly sophisticated threats. As I shared on the panel: "From a regulatory perspective, we’re seeing regulators around the world watch and see what happens. They’ll be looking over the next 12 months at whether the rule will play out well, which parts do they want to leave on the table. From a customer perspective, we’ve not seen anything similar in other jurisdictions, but fraud is real—it’s something that does require attention. We’re already seeing organizations ramp up investments, whether in technology or analytics, and looking to maximize and get a lot more out of the data." This is a dynamic area to watch, with significant implications for compliance, innovation, and customer trust. I’d love to hear your thoughts on how organizations can adapt to these shifting regulatory and fraud prevention landscapes. Read more in the full article from Payment Expert: https://lnkd.in/e-FdWgma #FinancialCrime #FraudPrevention #RegulatoryIntelligence #VIXIO #ComplianceInnovation

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Cracking article from Yvonne D. over at Pinsent Masons on the recent Bank of England announcement directed at the UK FMIs to scenario test for “extreme but plausible” events. Yvonne mentions potential risks posed by new technologies such as AI. How that all pans out is really tough to predict but one thing is easy to predict is that there'll be disruption. Not the standard marketing/sales pitch version of disruption "hey we're a disruptor" and "we're here to disrupt the market"...we'll all been subjected to that gibberish pitch at some point.....when you take a look under the bonnet they're nothing more than a complimentary product. True disruption brings obsolescence. AI, or more AGI, has the potential to bring rapid obsolescence. When you look at fintech through that lens it's easy to see why the regulators are soooooo focussed on OpRes right now. What are the 2 main features we look for when we invest in a fintech? Ability to scale and deliver a return. What happens when an established fintech becomes obsolete? Financial instability? Service deterioration? Potential for increase concentration risk that comes with a supplier being taken over? That disruption is pretty predictable but where it'll happen is impossible to say. Have a read of Michele Wucker's brilliant book "The Grey Rhino", Michael Grimwade's "Ten Laws of Operational Risk", Clayton Christensen's "The Innovator's Dilemma" and obviously Mustafa Suleyman's "The coming wave" for a clear indication of where I'm "borrowing" this thinking from.

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🇪🇺 The UK’s financial services sector will face millions in compliance costs if the government fails to extend a “vitally important” data adequacy agreement with the European Union, a UK House of Lords committee warns. 📉 Lord Ricketts, chair of the European Affairs Committee, says business connectivity with “our major trading partner” is at critical risk if a deal is not reached before a “cliff-edge” next summer. 🔐 The data adequacy agreement allows for the free flow of personal data between the UK and EU. It was agreed in 2021, a year after the UK officially left the EU, but is set to expire in June 2025, at which point the European Commission will either grant an extension or let it expire. 🇬🇧 💸 Asked how a ‘no-adequacy’ environment would impact the City of London, Lord Ricketts says: “It would increase costs, undermine trust in our digital economy and create extra red tape.” ✉️ In a letter from the committee to Peter Kyle, secretary of state for science, innovation and technology, Lord Ricketts says talks with Brussels should be at the heart of Prime Minister Sir Keir Starmer’s post-Brexit EU “reset”. ⏳ Lord Ricketts, a former top diplomat, tells John Crowley of Banking Risk and Regulation: “There are a million other high priorities the government has, but we recommend that reaching timely agreement on adequacy should be integral to the reset, and be the government’s top data protection issue.” 👀 Read more below https://lnkd.in/e5mqiDue #DataAdequacy #DataSharing #EU #Banking

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The UK Finance Annual Fraud Report 2024 reveals some alarming statistics about fraud trends that businesses and consumers need to be aware of: 📊 Authorised Push Payment (APP) Fraud: * £459.7 million lost in 2023. * 232,429 cases reported, a 12% increase from 2022. * 62% of APP losses were reimbursed, up from 59% in 2022 . 📱 Mobile Banking Fraud: * 25% increase in remote banking fraud prevention efforts, highlighting the growing sophistication of fraud tactics targeting mobile platforms. The Numbers Speak Volumes: * APP fraud primarily originates online (76%) and through telecoms (16%). * The rise in romance scams and purchase scams are significant contributors to the increase in APP fraud cases. Sekura.id has decades of experience in Mobile Identity and is a GSMA Open Gateway Channel partner, we use our 100% uptime SAFr platform to provide a range of solutions to combat the fraud that UK Finance and Feedzai have highlighted with just one simple API connection 🔒 Real-time transaction monitoring to detect and flag suspicious activities. 🔒 Tools which can detect APP fraud before it happens 🔒 AI-driven analytics to identify unusual customer behaviour patterns. 🔒 Enhanced verification processes to ensure secure transactions and protect against impersonation and scams. With Sekura.id, you can safeguard financial transactions and significantly reduce the risk of fraud. All while giving your users a vastly improved UX. We say, don't wait for fraud to happen —proactively protect your assets and your customers today. Read the full report at https://lnkd.in/emt4hAFJ Contact Sekura.id now to learn more about how our solutions can help you prevent APP and mobile banking fraud. #Innovation #Technology #Finance #CyberSecurity #FraudPrevention #DigitalTransformation #Banking #FinTech #AI #MobileBanking

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Banks serving the UK must review their financial crime controls as part of updated guidance from the regulator. The Financial Conduct Authority (FCA) is consulting on updates to its Financial Crime Guide, which sets expectations of what it considers good compliance to look like. Read our blog to find out what is changing, and what it means for #compliance: https://bit.ly/45jyOm1

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