Tag Archives: Compliance

Fraud & Security 5 Reasons Why AML is More Important Than Ever in 2019

Money Laundering Techniques
Jan302019

There’s a pervasive view that compliance for money laundering remains a cost-centre activity, and is primarily a “check-the-box” exercise to keep the auditors and regulators satisfied. However, that has evolved in recent times. As business volumes and data complexity increase exponentially, AML compliance has taken on a bigger role. There’s a growing realization that compliance needs to be imbued as a culture from the top-down to the entire organization for it to be effective, and that a wider perspective of tackling financial crime is required, rather than separate siloed risk operations. Leaders realize that it not only safeguards the institution’s reputation and shields against regulatory pressures, but works in tandem with other risk operations in the financial institution to reduce risks and thereby improve long-term business prospects. The more modern and relevant view now, is that compliance brings real value to the entire organization, rather than being a distraction or inhibition to business.... [Read More]

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Fraud & Security Banking Fraud – What’s Happening In Asia Pacific?

Banking Fraud
Jan232019

FICO recently hosted 60 banking fraud professionals from 33 organizations and 8 countries at its Asia Pacific Fraud Forum.  Attendees were keenly interested in how artificial intelligence and machine learning continues to be a key technology in the fight against fraud and financial crime. There was also a lot of discussion about the growing convergence between fraud and compliance departments and how business and operational models must adapt. Lastly, there were common challenges around the growing complexity of data sets and the need to deal with them at speed and with greater accuracy. Three of FICO’s fraud leads explain some of the key themes and discussion points raised at our Asia Pacific event. Banking Fraud – Financial Crime Convergence! Adam Davies: During the event, there were many conversations and discussions around the convergence between fraud and financial crime. It was interesting to see that many of the attendees had responsibilities... [Read More]

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Risk & Compliance Expenses Abuse: What Is The Cost Of A $4 Beer?

Expenses Abuse
Aug062018

Expenses Abuse Gets Media and Tax Payers In A Froth Recent news articles out of Ohio ($4 beer dings Butler County Visitors Bureau in state audit) highlights the reputational risks that can impact an organization when it fails to monitor spending for non-compliance or expenses abuse.  The audit uncovered a single $4 Beer which was part of a payment for $11,554. While the applicable statues clearly prohibit this purchase from being reimbursed, it is important to put this in perspective. This was a single $4 purchase and it represents 0.035% of the total amount. There are many ways this reimbursement request could have been identified. If the expense request had been stopped because a supervisor had noticed the purchase during the approval process, or an automated system had identified the non-compliant item then the requestor would simply have removed the item, and the remaining amount would have been reimbursed.  In this... [Read More]

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Analytics & Optimization AI – What Chief Compliance Officers Care About

AI conference logo
Aug092017

Arguably, there are more financial institutions located in the New York metropolitan area than anywhere else on the planet, so it was only fitting for a conference on AI, Technology Innovation & Compliance to be held in NYC – at the storied Princeton Club, no less. A few weeks ago I had the pleasure of speaking at this one-day conference, and found the attendees’ receptivity to artificial intelligence (AI), and creativity in applying it, to be inspiring and energizing. Here’s what I learned. CCOs Want AI Choices As you might expect, the Chief Compliance Officers (CCOs) attending the AI conference were extremely interested in applying artificial intelligence to their business, whether in the form of machine learning models, natural language processing or robotic process automation – or all three. These CCOs already had a good understanding of AI in the context of compliance, knowing that: Working the sets of rules... [Read More]

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Collections & Recovery Three Top Regulatory Themes Emerge from Debt Collection Panel

Three Regulatory Themes
Apr102017

I recently moderated a regulatory panel discussion before a group of nearly 100 collections and recovery (C&R) professionals at the FICO® Debt Manager™ User Group Forum. The esteemed panel consisted of a mix of veteran policy and business leaders, including: Maria Wolvin, Vice President and Senior Counsel of Regulatory Affairs at ACA International; Terry Collins, Collections and Recovery Manager at Trustmark National Bank; and Lucia Lebens, Vice President of Government Relations and Public Policy at Navient. Much of the discussion focused on what C&R professionals can expect in the new US regulatory environment that has emerged in the wake of the November elections. While our experts spoke on a number of hot-button topics, three main themes emerged. CFPB Debt Collection Rulemaking Will Likely Move Forward The panel discussed the CFPB’s continued focus on developing new debt collection regulations. The CFPB has indicated that its next pre-rule action will be the... [Read More]

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Risk & Compliance The Skinny on Trump’s Regulatory Reset

regulatory reset
Feb232017

In my 2017 regulatory predictions post last month, I concluded by saying that the new year would be very different for the financial services industry than 2016. This certainly didn’t take long to come to fruition. In the first two weeks of the new administration, President Trump took several steps aimed at slowing down as well as scaling back current and future regulations. Despite these aggressive actions, there remains a number of challenges related to the reach and impact of these directives. Regulatory Reform through Memorandum and Executive Orders Out of the gate, the Trump administration made good on its promise to curtail the pace of federal regulations. Assistant to the President and Chief of Staff Reince Priebus issued a memo on Inauguration Day that, in part, calls for the heads of executive departments and agencies to initiate a regulatory freeze until someone designated by the President has a chance... [Read More]

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Fraud & Security Stamping Out Financial Crime in Kathmandu

Feb132017

It’s not often that we enter a greenfield market that is just on the cusp of significant growth, but earlier this month FICO announced its entry in the Nepalese financial market. Nepal is looking to grow its economy and the government recently called for enhanced risk management compliance capabilities to help combat cases of financial crime in the country. “There is clear evidence that economic and financial crimes are some of the fastest growing offences globally,” said Dr. Chiranjivi Nepal, governor, Nepal Rastra Bank. “In Nepal, we can ill afford for these activities to drain our economy or to destroy business and banking confidence. It is therefore imperative that we match the technologies of sophisticated organized criminal groups, with advanced analytics to help banks closely monitor the vast volume of financial transactions they handle on a day-to-day basis.” With the perspective of regulatory compliance turning increasingly global, the Nepalese banks... [Read More]

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