ComplyAdvantage has launched a new anti-money laundering (AML) guide for digital banks to provide them with a better understanding of the topic.
The guide – named Anti-Money Laundering Guide For Digital Banks – provides companies such as challenger and neo banks with a clear understanding of the regulatory challenges they may face, how best to structure an effective, customer-centric program and real-world examples of success stories from digital-first banks.
According to ComplyAdvantage, the new guidelines highlight key compliance considerations such as the latest guidance from the Financial Action Task Force, how different countries have treated the rise of challenger banks including charter and licensing requirements and specific regulatory requirements in their jurisdictions.
The guide also covers risk assessments and the risks inherent in the products or services used, alongside the risks posed by the individual or entity and risks posed by the specific jurisdiction or sub-jurisdiction.
ComplyAdvantage said, “The phenomenon of emerging banks offering digital-first services is redefining how consumers and businesses around the world access, manage, invest or transact with their money. And, while these services that have been designed around speed and convenience have attracted hundreds of millions of customers en masse, they have also become attractive hotbeds for financial criminals.
“Criminal organisations have shown their willingness to exploit the compelling features and benefits that digital-first banks offer to line their own pockets, launder illicit money and fund terrorism worldwide. As a result, regulators have begun to step up their scrutiny of the industry.”
ComplyAdvantage CEO Charles Delingpole added, “Our research is intended to help both customers and the financial services industry by providing insights with prescriptive measures so they can maintain the greatest level of risk management integrity. With areas from sanctions to cryptocurrencies evolving at such a rapid pace, what you don’t know can truly hurt your business.”
ComplyAdvantage recently teamed up with cryptoasset risk management solution developer Elliptic to release a new blockchain analysis and transaction monitoring tool.
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