Financial crime
Technological expertise in the fight against financial crime
Financial crime is having an increasingly significant impact on social cohesion and financial stability. Combating it requires the global efforts of all parties: law enforcement agencies, financial institutions, governments, and regulators.
As gatekeepers, financial institutions play a key role in preventing criminals from accessing the financial system. As criminals become increasingly resourceful thanks to technological innovations, financial institutions are compelled to continue innovating.
We partner with financial institutions to keep the financial system safe and secure. With our sector knowledge, technological expertise, and operational experience, we help our clients meet their legal obligations, enabling them to build trust in society.
‘Effective measures against financial crime require an integral vision’
Financial Crime
We support the transformation of our clients' organizations by advising on Regulatory, Operations, Analytics and strategy challenges within Financial Crime. We support and work together with a number of global and local financial institutions in various compliance related activities, such as: AML/CFT policies, health checks, risk modeling, transformations, systematic integrity risk analysis (SIRA), execution of remediations, look-back exercises and designing and implementing cost-efficient AML operating models and operations.
By delivering our services we increase the effectiveness and accelerate your regulatory programs with our operational and technological expertise build up over years of experience in the field. We bring together our unique combination of capabilities and technologies to deliver sustained outcomes that make a difference.
Managed Services
PwC provides a vast range of Managed Services, addressing all regulatory requirements by leveraging the best of our industry knowledge, technology expertise and operational experience. We deliver complex services, from transformation support, through state-of-the-art technology solutions, to highly automated, efficient operational deliver.
Research & Insights
PwC is researching and creating insights on Financial Crime to support our clients’ organizations to assess risks related to Financial Crime. These insights provide our clients' organizations insights how to strategically improve their organization and to remain alert.
Sanctions screening
Efficiency of sanctions screening
Sanctions compliance is becoming an increasingly urgent and critical component of financial institutions' (FIs) regulatory obligations. Within financial institutions, well-calibrated screening tools are needed to reduce the number of false positives. At the same time, screening must ensure the detection of genuine risks. We can support in all areas to ensure an effective and cost-efficient sanctions screening process—now and in the future.
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Services
Scope of expertise
- Subject Matter Expertise (SME) on relevant topics (e.g. AML/CFT/Sanctions)
- AML framework / Risk Modeling / Training
- Compliance Function Transformation
- Quality Assurance
- Financial Crime health check
- Research and Benchmarking
Our capabilities
- Regulatory experts with a hands-on experience in Financial Crime controls and regulations within first line (business), second line (tax, legal, compliance) and third line (audit) of defence
- In-house developed practical methodologies based on market standards
- Creation of your end to end AML framework: Translation of Regulation into SIRA, policy, processes, and quality assurance
- Ability to assemble multidisciplinary team with all relevant capabilities, from interpretation of regulation, policy setting, process design, data and technology, to execution capabilities
- Supporting global and local financial institutions in compliance and operational-related projects, were we bring in the strength of our people, capabilities and technology together to support our clients in building trust and delivering qualitative and effective outcomes (e.g. AML/CFT/Sanctions, CDD/KYC, Transaction Monitoring (TM), FATCA/CRS, GDPR, MiFID, MAD/MAR, ESG, transformations, risk modelling, health checks, policies, processes, SIRA, Quality Assurance)
Scope of expertise
- Subject Matter Expertise on regulation and legislation, both national and international (Wwft, MiFID, Basel, PSD2, 5AMLD, DAC6 etc.)
- Subject Matter Expertise on connecting policy, technology, processes and execution (end-to-end specialists)
- Regulatory program design
Our capabilities
- Highly skilled professionals with extensive industry & regulatory knowledge and strategy experience
- Assessing the impact of future regulations on our clients business operations and develop according regulatory strategies.
- Introducing new KYC strategies (e.g. STP, Perpetual KYC, Managed Services) to move from a state of remediation to a sustainable business as usual. Enabling our clients to remain competitive and compliant with regulatory requirements in the long term.
- Reviewing, evaluating and improving our clients existing strategies on financial crime (e.g. KYC, TM)
- Creation of your end to end AML framework: Translation of Regulation into SIRA, policy, processes, and quality assurance
Scope of expertise
- Financial Crime Transformation projects
- Financial Crime Operating Model (TOM) Design & Implementation
- Process Optimization
- Design and execution of large scale and multi territory remediations (e.g. CDD/KYC, TM)
- Performing remediation to tight deadlines set by regulators
- Subject Matter Expertise on connecting policy, technology, processes and execution (end-to-end specialists)
- Quality Assurance
- Look-back exercises
Our capabilities
- Designing and implementing (cost) efficient Operating Models, Quality Models, remediation approaches and supporting technology. Relying on tried and tested methodologies and approaches.
- Experience and expertise in project execution in Agile, Traditional and Hybrid environments, building on years experience in the Regulatory domain.
- Highly skilled consultants with extensive industry & regulatory knowledge and hands-on experience in Financial Crime function transformation and technical & operational disciplines to:
- Help our clients fix identified issues, either on premises or offshore in our Financial Crime Units (FCU) Operations Centers;
- Successfully execute regulatory projects (e.g. CDD/TM remediations).
- FCU Operations Centers allowing for rapid scale-up. These centers operate in Europe (Poland and North Ireland), USA and Asia (Philippines and India).
- Supporting global and local financial institutions in performing remediations (e.g. CDD, TM).
- End-to-end services that are quickly scalable to effectively execute programmes to meet challenging deadlines
- Different delivery models: Inhouse execution, Outsourcing, Managed Services solutions
Scope of expertise
- Business Analysis
- Data Analytics & Reporting
- Cluster analysis
- Machine learning
- Anomaly Detection
- Predictive Modelling
Our capabilities
- Performing data analysis and setting up predictive risk modeling to enhance quality and effective AML operations.
- Building forecasting models, fed by production & capacity analysis, to predict future resource demands
- Data analysis and pattern recognition to detect financial crime, predict the probability of future events and improve processes; leading to sustained outcomes (e.g. TM/TF).
- In-house developed mathematical system for anomaly detection
- Forensic analysis, including reconstruction (look-back) and designing solutions to prevent financial crime from happening in the future.
Managed Services
Subject matter Expertise
Proven methodologies in specific financial crime areas, like Know Your Customer (KYC), Transaction Monitoring (TM), Client Activity Monitoring (CAM), Ongoing Due Diligence (ODD), Client Filtering (CF)
"To fit particular client requirements, multiple dimensions of a Managed Services model are assessed each time independently and flexibly tailored to the certain needs."
Our approach
We provide you with flexible and scalable solutions that can be deployed quickly to meet your burst capacity or business as usual requirements. We can help you plan and respond to the changing resource demand driven by the strategy or the peaks and through the nature of the work
Across our people, process and technology, we provide effective solutions that address your needs in a cost efficient manner, allowing your team to focus on board priorities and opportunities.
We can manage everything from one place. You will not need multiple contractors for different parts of the project. Our processes are ISO-certified, and developed with our industry-leading expertise. Your project is mapped out and managed for consistent results, high quality, and to keep things on track to make sure we help you deliver.
AML Managed Services scope of offering:
- Know Your Customer (KYC) processes – onboarding, regular reviews, event driven reviews
- Transaction Monitoring alerts investigation
- Client Exits
- Screening as a Service (negative news, PEP, sanctions)
- Know Your Vendor (KYV) / Third Party Risk Management
- Quality Check (QC) & Quality Assurance (QA) as a Service
- Subject Matter Expertise (SME) as a Service
Research & Insights
Paper: The fight against tax avoidance and other financial crimes vs the right of data protection: a regulatory tug-of-war for the Financial Services industry?
When we hear “GDPR” we usually think of our social media privacy (need to check the settings), but what about our financial data privacy with our accounts at banking and other financial business partners?
While much of the public appears to understand their rights under the General Data Protection Regulation (“GDPR”) with regards to their social media presence (partly due to scandals in the past) there is more bubbling under the surface with regards to individual rights under GDPR and their relationship with the financial services industry. There is a global regulatory trend towards transparency obligations of the financial services industry to counter tax evasion and money laundering. However, GDPR and the increased public demand for privacy goes opposite to this trend. This paper sets out to explore where the individual rights under GDPR may at times conflict with the regulatory requirements imposed on the financial services industry.
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Why PwC
- Global and local risk and regulatory expertise
- Tested, scalable and adoptable delivery framework
- Extensive international and local experience
- Quality embedded in our delivery
- Efficiency driven by technology
