Top 10 Anti-Financial Crime topics for 2017

2 - More intrusive surveillance

More surveillance of employees’ business activities, including more sophisticated voice surveillance and trade monitoring, will become the norm. This partly reflects increased regulatory scrutiny on anti-fraud, market abuse and anti-bribery and corruption controls. For some, this will require a new focus of effort.

3 - The convergence of financial and cyber crime

Financial and cyber crime will increasingly converge, driving a greater focus on a more coordinated response, including combined risk and threat assessments. Financial institutions also need to be mindful of the new and different risks created in both areas as they digitise existing activities and launch new digital products.

4 - Data, data, data

The establishment and use of data lakes containing data to help prevent and detect financial crime will continue. Expect to see potentially transformational changes in the speed and sophistication of analytical and other tools used with this data. For the more advanced, AI and machine learning solutions will further enhance what can be done.

5 - Biometrics and Blockchain

Will 2017 be the year in which biometrics and blockchain gain traction? We think so. The use of Biometrics and other digital identity technology has the potential to transform customer onboarding. Some blockchain use cases will also help prevent and detect financial crime. Combined, and used effectively together, they could make a real difference. 

6 - Outside the banking sector

Expect to see a renewed and greater focus by regulators on the effectiveness of anti-financial crime controls in the insurance, asset management and private wealth management sectors. Historic levels of reliance placed by some on controls carried out by banks and others is becoming harder to justify.

7 - The cost problem

Anti-financial crime costs continue at an all time high. Something needs to change. Many pin their hopes on new technologies and increased efficiency bringing about a fall in costs. Others look to new operating models and the use of technology enabled managed service solutions. Combined with multi institution data sharing, these managed service and utility solutions have the potential to both reduce cost and improve quality.

8 - Technology trends

2017 will see an acceleration in the development and use of more advanced technology solutions, particularly for transaction monitoring and data analytics. With skilled staff in short supply this is a business imperative. Many Fintech organisations will either fall by the wayside or clarify what they can really offer and become part of the solution.

9 - The role of sanctions

Sanctions will continue to be used as a political tool, however, with upcoming US and other administration changes, where and how they will be used is perhaps more uncertain. New enforcement bodies will also create a new dynamic in Europe. Time will tell, but the need for financial institutions to focus on sanctions compliance remains key.

10 - The need for greater operational effectiveness 

Expect to see more financial institutions joining the trend to reengineer their anti-financial crime compliance and associated functions to help achieve greater operational effectiveness. Typical drivers include a desire to break down functional silos and have much clearer and more robust definitions of the respective roles and responsibilities of the first, second and third lines of defence.