Head of Outsourced Compliance Services & CO/MLRO - Authorised by DFSA & FSRA
Having one of the best screening solutions in the market has me pondering all the time. Yesterday, a financial institution in the UAE was fined by the authorities, highlighting the importance of robust regulatory enforcement and due diligence practices. The question arises: if authorities do not disclose the names of these organisations, how can our systems effectively identify them for compliance purposes? Should authorities name institutions to ensure comprehensive due diligence? How crucial is it for you to have complete information when conducting due diligence? I invite you to share your insights on the significance of transparency in regulatory enforcement and due diligence processes. Your thoughts are valuable in fostering a culture of compliance and integrity. #RegulatoryCompliance #DueDiligence #FinancialInstitutions #Transparency #screening #Themis
Tanveer Kaur
3mo
Great points raised here. While the UAE's approach of not naming non-compliant organizations may foster internal improvements, selective transparency with key stakeholders - like banks and financial institutions - can enhance due diligence and mitigate risks. That said, it's equally important for institutions to incorporate effective compliance frameworks independent of public disclosures in order to anticipate and manage risks before escalation. Overall, I believe that finding the right balance between confidentiality and transparency is key towards a safer financial ecosystem.
Shazib Ahmed
3mo
While transparency is important, relying on authorities to name violators shifts responsibility. Financial institutions should be proactive in their compliance efforts, not waiting for public disclosures. Effective due diligence systems should work independently of such lists if we're serious about integrity
Head Of Sales at Cogent Solutions Event Management
3moIn my opinion, the organizations should be named so they can be approached to support their compliance challenges. Maybe they do not have the team or expertise to manage this internally. The other question that arises is, are the fines significant enough for them? We all know the investment towards implementing enhanced due diligence/Anti money laundering solutions is not. Maybe someone with more knowledge can educate me.