RTA Associates - Financial Crime & Conduct: Exploring Regulatory Technology – A New Approach

March 2018 Kompli-Global

During the March 2018 event in Paris, participants including Kompli-Global, BNP Parobas, HSCBC and Capco expressed a strong appetite to understand how technology can help them address regulatory requirements, and to increase their awareness of existing solutions.

A range of themes emerged, including what Financial Crime and Conduct regulations have in common – both require monitoring a considerable number of data sources. Without adequate context, it is virtually impossible to begin addressing how to analyse effectively the enormous datasets involved.

Discussions outlined current trends and potential approaches, focusing on issues faced by specific financial services industry segments in addition to considering the wider contexts of globalisation and data-centric challenges.

This whitepaper sets out to share insights presented by banking and RegTech experts who participated in the event’s panel discussions.

John Davies, CEO of Kompli-Global, focused on how to ensure criminals cannot abuse customers and how financial institutions can perform better due diligence checks. He outlined how organised criminals understand rules-based systems and how these are fragmented across the globe – they consider situations in isolation and play on the rules of legitimate business. Past “deep” due diligence checks are known to have missed all signs of illegal activity – for example where some fraudsters were operating elaborate scams.

Given the complexities of international businesses, onboarding international clients can be particularly labour-intensive. Many checks that may be considered sufficient for a given purpose locally (e.g. requesting a copy of passports and utility bills) are very unlikely to be sufficient.