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As technologically-driven solutions continue to firmly pierce the financial industry and how it runs, the need for firms to maintain compliance amongst a deluge...

The effectiveness of anti-money laundering (AML) and combatting the financing of terrorism (CFT), is not solely reliant on the initial design, but also comes from the adaptability and responsiveness to evolving risks.

Governance and risk assessment are not regulatory checkboxes but the bedrock of a robust BSA/AML and OFAC compliance program.

With the industry's focus on rapid growth and market domination, the critical role of risk assessment in preventing money laundering, terrorist financing, and other illegal activities is frequently sidelined. This negligence can lead to severe consequences, including regulatory fines and reputational damage, ultimately impeding a company's ability to compete.

In 2023, new technologies entered the market that brought new challenges for financial services firms to remain compliant, RegTech was given the opportunity to provide the solutions necessary to fix this issue. Whilst the industry may be still relatively unknown beyond the shores of finance, its importance cannot be understated.  

As another year draws to a close in the RegTech industry, the sector is peering up at a new unexpected leviathan in its midst – Generative AI. The technology, virtually unknown in the mainstream at the start of this year, has created not just new opportunities but completely new challenges for the industry to grip its teeth into.

A recent growing challenge that has been identified in the financial sector this year has been money muling.

Proliferation Financing (PF) is becoming an increasingly important aspect of the compliance landscape, akin to well-known areas like anti-money laundering (AML) and counter-terrorism financing (CTF). Recently, regulators, particularly in the UK, have begun implementing stricter measures to help businesses identify and mitigate PF risks.

In an age where technology is evolving at a breakneck speed, the need for regulations to link with that is becoming ever more important.  

The constant evolution and intricacy of today's risk environment demand robust financial crime risk management tools. As financial crime threats and risks continuously evolve, an Enterprise-Wide Risk Assessment (EWRA) has become essential for regulated businesses.