Optimization of Technology to Meet Regulatory Expectations

Author: Philip Tu, CAMS-FCI

Many banks that are in their current predicament with fines and monitorships, are results of the failure to execute and follow through with a well-documented AML program, or on the contrary, failure to identify gaps/breaks with their current programs/controls and policies and procedures. Instead of identifying which controls are not operating effectively and need improvements, they over engineer a problem that is in need of simplification. The purpose of risk assessments or implementation of an adequate transaction monitoring system is to simply detect material risks that need to be mitigated and to unravel root causes of these key risks. The purpose of this white paper is for banks to actively seek assistance and allocate the adequate resources to either staffing or technology (i.e., systems) to perform on an optimal scale to meet regulatory expectations, if they are already not doing so.

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