Financial economic crime

Scale and impact of financial economic criminality are increasing

Financial economic criminality (FEC) is a serious risk for financial institutions. Money laundering, funding of terrorism, tax evasion and other forms of FEC can cause a lot of damage, both financial and reputation-related. Digitalisation has significantly increased the impact of financial economic criminality. Criminal activity can be more detrimental and of a much bigger magnitude when it takes place online. And the threat of FEC is greater now that banks, insurers, pension funds and trust office rely so heavily on digital systems.

‘How can your financial institution find an effective approach to financial economic criminality without losing sight of compliance-related costs?’

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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.

Customer Identity Lab helps with digital identity

Like many organizations, banks are confronted with enormous changes, such as digital transformation, changes in laws and regulations and cyber attacks. We also experience that digital identity is a key component to successfully navigate through these changes. We have developed Customer Identity Lab, a fictional bank that enables organizations to understand what an abstract topic, such as digital identity, can do to improve interaction with their customers.

‘Effective measures against FEC require an integral vision.’

Thomas Rijneveld

Supervisory bodies expect tough measures

All these developments have resulted in stricter laws and regulations concerning FEC. Supervisory bodies expect financial institutions to take tough measures to tackle FEC. And severe penalties in the US and Europe show that regulatory bodies mean what they say.

How we can help you

Our team has considerable experience when it comes to the implementation of FEC-related laws and regulations at financial institutions. We also offer support when optimising existing processes, systems and policy. Our assistance also includes remediation and recovery after compliance incidents. And we also help to develop new operational models that allow you to comply with laws and regulations in an effective and cost efficient manner – for instance, when it comes to outsourcing or centralising operational processes.

Our FEC specialists can help you in the following areas:

Systematic integrity risk analysis (SIRA)
Know Your Customer (KYC), Customer Due Diligence (CDD), Ongoing Due Diligence (ODD), Client Activity Monitoring (CAM)
Transaction filtering and monitoring, Client filtering
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