ComplyAdvantage – the specialist regtech company active in the compliance industry through data science and machine learning in a bid to neutralise the risk of financial crimes – has just released its ‘2020 Global Compliance Report’. From regtech innovation through to the ever-shifting regulatory landscape, the report explores how technology and politics are set to shape Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) in 2020 and beyond.
Major themes explored in the document include sanctions, money laundering, the regulatory landscape and innovation.
Sanctions are set to be used increasingly as a tool of ‘first resort’ by the current US administration. How can financial institutions prepare for increasingly divergent sanctions in 2020 and beyond?
Techniques will continue to rapidly evolve. They will increasingly involve the sophisticated use of new technology and the exploitation of vulnerable demographics. The nexus with cyber crime will strengthen.
While regulatory changes are occurring around the globe, the AML framework will continue to creak under pressure. Regulatory divergence challenges the evolution of global, regional and national compliance.
Financial institutions will work ever-more closely with regulators to harness the potential of regulatory technology, and especially machine learning. Expect 2020 to be a year of deepening engagement wherein “partnership” will be a strong theme, and particularly so between the public and private sectors.
Financial institutions and corporates alike are being forced to navigate an AML/CFT ecosystem that’s facing immense pressure and strain from the competing narratives of national politics, global economic inequality and rapid socio-economic changes.
Pressure brought to bear
“Rapidly evolving economic and political developments are putting more and more pressure on companies that operate across regulatory boundaries,” said Charles Delingpole, founder and CEO of ComplyAdvantage. “The shifting of regulatory tectonic plates driven by the US, Russia, Iran and China makes this landscape an increasingly challenging one to navigate. A robust enforcement and supervision regime relies upon international consensus which is being aggressively challenged.”
Delingpole continued: “As technology enables a rapid increase in international financial flows and the complexity of supply chains, now more than ever companies have to be alert to the huge challenges they face when combating money laundering, adhering to sanctions regulations and maintaining reputational integrity.”
He added: “Our ‘2020 Global Compliance Report’ analyses regulatory divergence, money laundering and innovation, focusing on how financial institutions and corporates alike can serve to combat a moving target.”
*For more information visit: www.complyadvantage.com