Robert Evans’ Post

🚨 Key Audit Insights for H1 2024: What We Learned 🚨 At FINTRAIL, we’ve just released our overview of the most critical findings from our anti-financial crime audits for the first half of 2024. 🔎 Key Findings: ❗️Customer & Payment Screening controls took centre stage, accounting for the largest number of critical findings. ❗️We also saw gaps in policies and procedures, especially when they weren’t tailored to firms’ specific products or aligned with the latest regulatory updates. ❗️Governance issues like unorganised KYC storage and lack of management information hindered efficiency. 💡 Read the article to learn more: https://lnkd.in/ePyRCCGT As the regulatory landscape shifts - especially with upcoming changes like the UK’s new PEP requirements and mandatory reimbursement for APP scam victims - it’s crucial for firms to stay proactive. If you have an upcoming audit, get in touch to find out more about our services. #financialcrime #audit #fintech #compliance #regulation #AML #FCA #risk

The Financial Conduct Authority has sent a serious warning to financial institutions after identifying widespread failings in how firms are preventing money laundering. In this Finextra article, I provide an overview of the key finding: 🚨 Business Model Discrepancies: Firms may not accurately reflect their activities, leading to regulatory gaps. This, combined with inadequate financial crime controls, poses risks, especially in rapidly growing firms. 🚨 Risk Assessment Weaknesses: Ineffective risk assessments, both at the business-wide and customer levels, leave firms vulnerable to financial crime. Insufficient understanding of risks can lead to improper resource allocation and onboarding of high-risk clients. 🚨Due Diligence and Policies: Lack of detailed policies creates ambiguity for staff regarding compliance obligations under MLRs. Clear guidance and ongoing monitoring are essential to prevent financial crime activities. 🚨Governance and Training: Inadequate resources and training, coupled with a lack of clear audit trails, hinder effective financial crime compliance. Strong governance structures, comprehensive training, and transparent decision-making processes are crucial for mitigating risks and maintaining compliance. The Financial Conduct Authority has ordered the chief executives of all 'Annex 1' firms to complete a review within 6 months to identify any gaps in their anti-money laundering frameworks. Action must then be taken to address shortcomings. Read the full article here below 📰 #FCA #DearCEOletter #fincrime #compliance #aml #fintech

The FinCEN “Travel Rule” has many requirements and nuances that can challenge and confuse new and seasoned AML compliance professionals alike. View our comprehensive overview of both the Recordkeeping Rule and Travel Rule. https://hubs.la/Q02WhrB80 #AML #FinCEN #compliance

📣 Calling all finance specialists! Do your #duediligence to avoid falling victim to an ever-growing pit of fines and penalties. Financial institutions have only seen an increase in penalties, resulting in an erosion of trust from investors.   An alarming trend has emerged over the past few months and years: continued non-compliance with #sanctions, suspicious activity reports (#SARs), and transaction monitoring violations. And as non-compliance has grown, so too have related fines, increasing by more than $60 million since 2023. The uptick in enforcement actions relates to compliance involving politically exposed persons (#PEP), #KYC, digital asset providers — and, significantly, anti-money laundering (#AML) regulations. ✔ Are you taking all the necessary steps to safeguard your business and reputation from finance-related risks? Contact our due diligence and risk management experts to find out. Svetlana Milbert, Duncan N., Dorian Baker, Tom McWeeney

Earlier in 2024 the FCA issued a "Dear CEO" letter, highlighting AML control issues for Annex 1 firms. Our article and thoughts available below 👇. 📖 A good read for any regulated firm (not just Annex 1 firms) that want to keep up to speed with FCA concerns and industry trends (combating financial crime remains a key commitment in the FCA's business plan!). 📝 There's also pointers on approaches to strengthen existing (or build out new) AML frameworks and processes. We've supported a range of clients to navigate the regime. Please get in touch if you have any queries or would like to chat on the topic. Ashfords LLP #financialservices #fintech #AML #regulatory https://lnkd.in/eE6Ds_iH

What is Enhanced Due Diligence Enhanced Due Diligence (EDD) is a rigorous level of scrutiny applied by financial institutions and other regulated entities to high-risk customers and transactions. EDD goes beyond standard due diligence (SDD) to provide a deeper understanding of a customer's background, financial activities, and potential risks. Key aspects of EDD include: 1. Detailed Customer Information 2. Ongoing Monitoring 3. Risk Assessment 4. Increased Scrutiny 5. Documentation and Reporting 1. #Fincrime 2. #KYC 3. #Compliance 4. #AML (Anti-Money Laundering) 5. #CDD (Customer Due Diligence) 6. #RiskManagement 7. #FinancialCompliance 8. #RegulatoryCompliance 9. #CustomerVerification 10. #IdentityVerification 11. #FraudPrevention 12. #FinancialSecurity 13. #DueDiligence 14. #Fintech 15. #BankingRegulations 16. #Transactionmonitoring 17. #Knowyourcustomer

The Financial Conduct Authority (FCA) has warned over 1,000 Annex 1 firms (lenders, money brokers and financial leasing companies), about serious money laundering failings at the most basic level. In our latest blog, we unpack warnings on AML failures, providing practical strategies to strengthen your firm's defenses. https://bit.ly/49HeDzL #AML #FCA #compliance

A recent dear CEO letter from the FCA warns Annex 1 firms over anti-money laundering failings including: - total lack of, or inadequate business-wide risk assessment; - poor policies including CDD, EDD and ongoing monitoring; - FC controls not keeping up with business growth/change; - lack of resource; - inadequate training; and - poor record keeping/audit trail for FC decision-making. ☎️ Chat with Adrian Isaac or Christopher Holmes to find out how Jade ThirdEye, a secure SaaS solution that’s purpose-built to automate financial crime monitoring can scale with your firm, provide an audit trail and support you to adapt quickly to changing risks. Although this letter targets Annex 1 firms, the findings and actions are relevant to a much broader audience. #AML #financialcrime #amlcompliance https://hubs.li/Q02nl65P0

⚠A recent dear CEO letter from the FCA warns Annex 1 firms over anti-money laundering failings, although this letter targets Annex 1 firms, the findings and actions are relevant to a much broader audience. ☎️ Chat with my colleagues Adrian Isaac or Christopher Holmes to find out how Jade ThirdEye can support your financial crime monitoring needs. #AML #financialcrime #amlcompliance

AML/CFT frameworks must not only exist but also evolve alongside your business. SAFS learnt the hard way with a hefty $2.5M fine from #MAS. 📈 Rapid Growth vs. Compliance Risks During a period of expansion, SAFS encountered: 🔹Inadequate Risk Assessments: Failed to adjust risk parameters that matched their growth and diversified clientele. 🔹Premature Client Engagements: Engaged with new clients before completing essential due diligence, increasing the risk of associating with illicit activities. 🔹Insufficient Monitoring: Overlooked critical discrepancies in transactions that did not match known customer profiles. 🔹Misclassification of Risk: Did not identify high-risk clients, such as those with bearer shares offering anonymity ideal for masking illicit activities. 🔹Reporting Oversights: Missed reporting suspicious activities despite clear indications of potential financial crimes. The penalty underscores the importance of evolving #AML systems alongside business growth. It's not just about avoiding fines—it's about protecting your institution from financial crime. Check out our blog for details on the red flags that led to the fine. https://hubs.la/Q02wM2l00 #Compliance #AMLFines #RiskManagement #FinancialServices