Japan’s #cryptocurrency #exchanges have reported a total of 669 suspected #money #laundering #cases to the country’s National Police Agency, according to a #report by Nikkei Asian Review. #Japanese cryptocurrency exchanges have been having a rough time lately with a major hack ($ 550 million) and some major technical glitches – one that almost cost one exchange …Read More
Bank Innovation
In this blog series about anti-money #laundering programs and #know your #customer initiatives (AML/KYC), we’ve explored the challenges and associated regulatory requirements that come with these efforts. We’ve also taken a deep dive into how financial firms can manage these programs, whether via home-grown #talent, explored in our paper, Leveraging enhanced talent development programs to increase anti-money laundering workforce effectiveness, or via a managed services effort or even robotic process automation (RPA), as described in our paper, Anti-money laundering and know your customer programs: sustainability through managed services, and its corresponding presentation.
We have noted that many options are available, and that financial firms might often benefit from a mix of approaches. We’ve even looked at some of the factors that can help a financial business decide on the right approach.
The next step on this journey, then, is getting ready.
If your aim is to build talent in-house, you can adopt a few strategies to get your AML efforts up and running:
If you are aiming toward a managed services AML/KYC model, these are the basic steps:
Finally, if you’re aiming for an approach involving RPA, some of your steps will be similar to those for managed services. You’ll want to:
These are only some of the steps you’ll want to take, and if your business is like many, you may well be combining several approaches in your comprehensive plan.
Managing your AML/KYC workforce talent can be challenging, but help is available. As we’ve seen over the course of this series, a powerful #solution is within your reach.
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In this series, we’ve looked at new challenges financial firms face with regard to anti-money #laundering and #know your #customer regulations (AML/KYC). Our paper, Anti-money laundering and know your customer programs: Sustainability through managed services, and the companion SlideShare consider the various challenges facing firms. We hone in on workforce challenges, in particular, in Leveraging enhanced talent development programs to increase anti-money laundering workforce effectiveness.
There’s good news! In this series we’ve explored several options and alternatives for building a strong AML/KYC program and workforce, whether using home-grown talent, managed services or virtual help.
The question, though, is: How can an enterprise choose the #best, most appropriate solution for the set of concerns it faces? Should a particular process be handled by robotic process automation (RPA), a managed services team or an internal resource?
Continue reading the post What’s the best anti-money laundering and know your customer approach for your business? on Accenture Banking Blog.
In my last post, we talked about the need for alternate options for some financial enterprises when it comes to cultivating AML/KYC talent. Accenture has taken an in-depth look at #talent solutions for anti-money #laundering and #know your #customer (AML/KYC) in our paper, Leveraging enhanced talent development programs to increase anti-money laundering workforce effectiveness.
We’ve also explored the broader #concerns around AML/KYC compliance in our paper, Anti-money laundering and know your customer programs: Sustainability through managed services, and the accompanying presentation.
Talent development for AML/KYC is a specific concern, and one not easily solved for many financial firms. Fatigue and turnover are high, hiring is challenging in a saturated market, and learning programs may not have kept pace with current industry and regulatory trends.
So what alternatives are available to firms for meeting KYC/AML requirements?
Here, a three-pronged approach might work. Step one is to establish a formal learning program, positioning AML/KYC as a function in which the business can invest. Next, the programs themselves may best be designed to offer role-based training, aligned to the business’s competency models and complete with certification requirements. Finally, the program could include blended learning approaches, and include ongoing reinforcement techniques.
These steps can help create a robust AML/KYC workforce over time.
For those organizations that choose migrating to a managed services model to handle AML/KYC, many benefits can be had. Why? Some businesses might find their current model is built on inefficient or manual processes. Sustaining these at the higher level needed to support new AML/KYC work might not be feasible, and upgrading the old model might not be an option either. Then there’s the flip side. For some institutions, finding the right resources to support an existing model that is updated to include AML/KYC may be a challenge.
By contrast, a managed services approach brings reduced costs, better access to the right skill set, global capabilities, scalability and improved quality throughout the AML/KYC program. For many, this option is worth considering.
There’s one more step down this journey: Adding robots or, in essence, using #technology to automate processes otherwise done by humans. Robotic process automation (RPA) offers advantages that humans can’t: It gets the job done, and also records and remembers the details of the job, bringing more data into the picture.
The idea of RPA is not new and it isn’t entirely unexpected either; our supporting presentation on the topic notes that 84 percent of banking executives surveyed by Accenture anticipate having to “train” their machines as much as they train their people in the future.[1] RPA brings even more dynamic capabilities than managed services, handling higher demand as easily as it knocks off lighter loads. Robotic processes can take place on a 24/7 basis, too.
View the presentation
Combing through the AML/KYC effort, financial firms may identify sub-processes or elements suitable to RPA, such as highly manual, high-volume efforts where the potential for error is high. These pieces might be prime candidates for RPA.
With all these #options available to financial firms, how can each enterprise go about choosing the approach that is right for them? If a combined approach makes sense, what pieces should be combined, and how?
My next blog will take a look at how firms can choose the best approach for their AML/KYC model.
[1] Accenture Technology Vision 2015 Survey
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