All posts by Frank Holzenthal

Fraud & Security Why the Panama Papers Leak Was Good for KYC

Panama Papers illustration

For many banks, KYC — Know Your Customer — means asking them how they intend to use a product, where the funds are coming from for their new account, etc. At the same time, the bank will check the customer against sanction lists, PEP (politically exposed persons) lists, and so forth. It’s not enough. Some hard evidence that it’s not enough came in 2016, when the so-called Panama Papers leak revealed that thousands of people worldwide owned a shell company in one of the countries covered. This was, needless to say, not something those individuals had disclosed to their banks. Should banks care? Absolutely. Under the KYC requirements that are part of current regulations, such as the 4th EU Money Laundering Directive and the fifth pillar of the BSA, the bank needs to know the business of their customers. If a customer owns an offshore company, it’s quite possibly so... [Read More]

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Fraud & Security How Norvik Banka Fights Money Laundering in Latvia

Norvik Banka exterior photo

Bank regulators in Latvia have increased scrutiny on banks suspected of allowing money laundering, resulting in record fines and more bank audits. One of FICO’s customers, Norvik Banka, is taking an early lead in this fight, using the FICO® TONBELLER® Compliance Solutions to fight money laundering and financial crime. “We had been using an in-house system to comply with Latvian regulations around money laundering, and based on the latest AML audit we ran a tender with global AML IT providers, of which FICO TONBELLER provided the best fit for our organization,” says Oliver Bramwell, Chairman of the Board at Norvik Banka, which has the country’s widest network of branches and finance and accounting groups. “The FICO TONBELLER system will allow us to improve transaction control significantly, enhance transaction transparency and decrease the bank’s operational risks.” Mr Bramwell was interviewed for an article that appeared last week in Retail Banker International.... [Read More]

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Fraud & Security Migration and the “Cloud Ceiling”: 5 Compliance Predictions for 2017

Plane breaking through clouds

In times of political and economic change, corruption and financial crime tend to rise. That means 2017 should be a risky year from a compliance standpoint. The strain of the Eurozone, the shock of Brexit, the surprise of the American elections, further terrorist attacks, revolutions in the Islamic world and other factors will create an environment that is ready for change. With that in mind, here are my top 5 predictions for the year. 1. Analytics will be the new black. Of course, as an analytics provider, we would say that. But it’s not just us – in a recent IDC report, Business Strategy: The Use of Advanced Analytics in the Know-Your-Customer Process, (Sep 2016, Doc # US40137316),  Bill Fearnley, research director, IDC Financial Insights, says: “Regulators and government agencies are working hard to cut off funds supporting terrorism and reduce financial crime and tax avoidance. To help in those efforts,... [Read More]

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Fraud & Security How Tunisian Banks Will Fight Money Laundering – in the Cloud

DMA award logo

Anti-money laundering is one of the vital components of the fight against organized crime and terrorism. Two firms have just received a FICO Decision Management Award for their innovative work to help banks across Tunisia increase their AML activities and comply with banking regulations. VITALIS, in partnership with FICO, has developed and deployed an advanced AML solution, hosted by SIBTEL in its cloud to be used by banks across Tunisia. In order to help the nation’s banks comply with AML regulations, SIBTEL sought a solution that could be installed in the cloud as a managed service. The solution VITALIS set up with them integrates the Siron® Anti-Financial Crime Solutions Suite from FICO TONBELLER, the Dow Jones Watchlist for screening PEP (politically exposed persons) and the VITALIS solution for managing Swift archives. The solution was implemented with a team of two consultants in just three months. This demonstrates the flexibility of... [Read More]

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