From: RegTech Analyst
Australian RegTech leader Arctic Intelligence is going to help African Bank meet its anti-money laundering (AML) and counter financing of terrorism (CFT) targets.
Since launching in 2015, Arctic Intelligence has become a leader when it comes to developing tools for risk assessment and audit and assurance that ensures businesses can remain compliant in their fight against financial crime. Earlier this year the Aussie scaleup picked up two awards at The RegTech Association’s annual awards ceremony shortly after being recognised as a Rising Star in Deloitte’s Technology Fast50 late last year.
Having been impressed by Arctic Intelligence’s achievements so far, African Bank decided to join Arctic Intelligence’s hundreds of global clients around the world. “[African Bank has spent] significant time researching a software or solution that will enable digital and seamless completion of anti-money laundering and counter financing of terrorism risk assessments,” said Lawrence Muravha, group head of the financial crime department at African Bank.
“We found the use of spreadsheets and other manual methodologies as not efficient way to conduct risk assessments mainly due to a failure in keeping clear record of evidence of processes and results. Furthermore, it also not always simple to explain as to how one arrived at the final outcome of the assessments and provided for more room of individual judgement to be made by compliance officers.”
By making good use of Arctic Intelligence’s tools, African Bank is demonstrating its proactive approach ahead of South African regulators’ anticipated 2020 review and aligns with Financial Action Task Force’s (FATF) recommendations.
The news comes after the EU updated its money-laundering blacklist in May 2020 to include four more African countries posing significant threats to the African banking sector.
“Staying ahead of the curve is precisely the type of risk mitigation strategy needed to combat crime,” Arctic Intelligence said in a statement. “The evolution of the financial crime landscape, particularly during the COVID-19 pandemic, has proven the agility of criminals and businesses need to adopt the same measures.
“Arctic Intelligence believes that everyone has a role in fighting financial crime and by providing cost-effective AML solutions that helps organisations achieve their compliance obligations, they can help to ease the burdens of the process.”
The news comes as the African FinTech scene is quickly maturing. The Sub-Saharan industry has attracted over $1.1bn since 2014, according to FinTech Global’s data. The majority, 39.8%, of that investment has been put into payments and remittances companies. Marketplace lending businesses are the second most popular African FinTech ventures investors like to bet on, having attracted 17.3% of the money.
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