How global financial leaders tackle the financial crime crisis

How global financial leaders tackle the financial crime crisis

Sibos 2023 concluded under the amiable autumn skies of Toronto, bringing together financial leaders, such as Victor Dodig from CIBC and others from Santander, State Bank of India, DBS, CLS, and EY, to discuss the resilience of banks and financial institutions amidst geopolitical disruptions. Fenergo attended the panel to understand how some of the big financial leaders are handling financial crime

Emphasising unity against fragmentation, the panellists advocated for industry-wide collaboration to construct resilience and amplify collective strength amidst uncontrollable geopolitical events. Moreover, the deployment of robust risk-management control systems was identified as a critical measure to shield institutions and clients from external risk factors, it said.

Diving into the specific realm of financial crime risk, Alan Ketley of the Wolfsberg Group declared, “financial crime is a trillion dollar problem, pursued by banks spending billions of dollars confiscating millions of dollars.” Another session, titled ‘Widening the Lens: Industry Collaboration in the Fight against Financial Crime’, emphasised the necessity to refocus on outcomes and efficacy, coupled with enhancing collaboration and standardisation in information sharing among financial institutions. The importance of forging partnerships with technology vendors was underscored, ensuring optimal technology is harnessed for risk management.

Positioning itself firmly within the financial services risk management ecosystem, Fenergo emphasises the essentiality of technological solutions in mitigating financial crime. Fenergo CEO, Marc Murphy, spoke on how technology, especially API-connected Client Lifecycle Management platforms, enables financial institutions to obtain a comprehensive, real-time perspective of client risk, thereby averting financial crime. Additionally, Murphy highlighted the potential of data and generative AI in facilitating intelligent onboarding, KYC, and AML systems, enhancing long-term client relationships, and improving employee experiences.

Echoing Murphy’s sentiments on risk control, Senior Vice President Global Wholesale Operations at Scotiabank, Sarah Gordon, remarked, “fundamentally at the head of onboarding is risk control. The regulatory bar and rules are always changing, don’t fight it but use it as an opportunity to make good business decisions.”

The overarching challenges revolve around onboarding globally expansive entities with intricate organisational structures, underscoring the importance of marrying risk control with strategic business decision-making amidst ever-shifting regulatory landscapes. In a resonance with the theme of ‘Collaboration in a Fragmented World’, Fenergo was portrayed as the cohesive force that seamlessly orchestrates the client onboarding journey from start to finish, thereby enabling financial institutions (FIs) to implement a risk-based strategy against malevolent entities.

Further advocating for the instrumental role of compliance, Chief Risk Officer at Fenergo, Chris Zingo, spotlighted how embracing digital opportunities and integrating compliance not as a mid-office function but as an innovation catalyst can redefine end-user experiences, shape market structures, and spur growth.

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