Banks and other entities have spent billions without making discernible or demonstrable progress in preventing crimes such as money laundering, terrorist financing, sanctions, cybercrime, fraud, corruption and tax evasion.
The financial services industry has an enormous amount of data available, yet it remains an untapped resource when it comes to FinCrime risk management.
As a result of these inefficiencies, and the inability to adequately measure risk, institutions have been exiting entire markets, which increases risk overall as informal opaque payment mechanisms become the alternative of choice.
According to the UNODC, criminal activity accounts for nearly 4% of global GDP annually, meaning that in 2018 around €5 trillion was lost, stolen or otherwise illicitly generated, often at the direct expense of the poorest and most vulnerable.
Compliance is achieved by focusing on FinCrime risk and taking commensurate mitigating actions. Compliance is a secondary factor which exists to measure the results of FinCrime risk management against legal and regulatory expectations.
With a combination of risk quantification, data analysis, machine learning and modeling, FinCrime risk can be quantified, predicted and clearly scored – as any other risk.
We provide institutions with sustainable and appropriate risk management strategies, including detailed, customised direction on measures needed to lower FinCrime risk levels.
Once FinCrime risk is clearly scored, relationships and transactions can be priced to account for variations in cost and to enable price differentials.
We automate the monitoring of FinCrime controls and their effectiveness at mitigating inherent risks.
We enable risk management decisions to be fact-based.
We use data to create a continuous feedback loop that enables senior management to see the impact of their decisions quickly and concretely.