Final preparations for MLD4; no more excuses (Part 2)

Dealing with the new regulatory requirements is a challenge technology can help with.

Final preparations for MLD4; no more excuses (Part 2)

The choice of a solution used to screen individuals and how organisations match against data becomes hugely important. The balance between excessive intervention, which creates friction to the customer experience, and operational cost against the prudence our regulated sectors need to ensure we spot corruption, is absolutely vital in running a business.

The key aspects to consider are:

  • The chosen screening solution must be thorough, inclusive of UK politicians, and the matching routines finely tuned for a UK population
  • The ability to investigate ‘hits’ or suspicious individuals should be robust and helpful to operators
  •  Existing customer base –  risk classifications made previously need to be re-considered
  • The ability to monitor activity on accounts and understand the ‘usual’ business you might expect from an account. This is particularly important where a PEP is trading with you, albeit good practice regardless.

Working with fellow industry professionals to keep ahead of money launderers

There are obviously some ways to protect a business against financial crime:

  • Companies that have weaknesses will be the first targets. Have strong defences – but be precise; you should not close the doors. Tight controls will cause customer attrition
  • Take a fully rounded view and become as educated as the enemy
  • Change constantly. The enemy will, so keep them on their toes and use progressive authentication models
  • Remember, good customers require great service. Companies need to make sure they have precision in their approach, utilising more data and innovative solutions to remove risk without undue friction

Companies need to be multi-disciplined in their defences. Fraud prevention professionals need to understand money laundering and money laundering professionals need to understand fraud. We hurt ourselves by living in silos and aid the ‘Financial Crime Profession’. The £1bn+ revenues generated in the UK through financial crime require the bright and motivated individuals working in different defence roles to work together. Unless you know how a financial crime operative works, you might as well just be ticking boxes. They rely on you ticking those boxes again and again – you become predictable. Don’t let this happen.