Royden McGee, Head of AML/CFT audit and consulting at Strategi, was there and in our last newsletter shared important insights from the Supervisors. Now, he’s continuing the discussion by sharing key takeaways from an international speaker. 

For a re-cap of what the Supervisors will be focusing on in 2024, click here.

A notable contributor to the conference was Alan Ketley, the Executive Secretary of the Wolfsberg Group, an association of 13 global banks dedicated to establishing standards and frameworks for combatting money laundering, terrorist financing, and other financial crimes. Ketley's insights delved into the challenges facing global AML practices and questioned the effectiveness of current Customer Due Diligence (CDD) practices.

Key questions explored:

Identifying suspicious activities/transactions:

• Are current practices effective in spotting potentially suspicious activities or transactions?

Deterring criminals and organisations:

• Do existing AML practices effectively discourage criminals from attempting to launder money through financial and non-financial institutions?

Ketley emphasised that staying ahead in the fight against financial crimes requires two key elements:

1. Up-to-date knowledge of money laundering typologies:

• Reporting entities need continuous access to the latest information on money laundering typologies. This knowledge, however, often involves a collaboration between law enforcement and reporting entities, presenting a challenge as law enforcement may not disclose ongoing cases until finalised in the courts.

2. Understanding industry-specific red flags:

• A high level of understanding of red flags within a particular industry is crucial. Recognising patterns and indicators specific to an industry can significantly enhance the effectiveness of AML practices.

Royden's perspective:

While compliance with CDD and other regulatory requirements remains paramount, there is a growing need for a shift in focus. As compliance programmes mature, attention should now turn to the training provided to staff within reporting entities. This includes exploring content beyond the conventional ID checks, proof of address, and Politically Exposed Person (PEP) checks.

The landscape of financial crime is evolving rapidly, and staying ahead requires a dynamic approach. The insights shared at the conference highlight the importance of continuous education, fostering collaboration between sectors, and cultivating a nuanced understanding of industry-specific risks. To navigate this terrain effectively, we recommend participation in Strategi's sector-specific training. This training equips you with insights into typologies, red flags, and risks specific to your sector.

To truly stay ahead, consider extending this valuable training to other members of your team. This ensures a broader understanding of AML/CFT and strengthens your collective ability to safeguard your business against the ever-evolving tactics employed by financial criminals.

For more information about sector specific training see our next article or you can register here to secure your spot for 2024.