For financial institutions, compliance is not just a process. Like the sea, it’s continuously moving and changing, and it requires vigilance to stay in tune with the latest laws, regulations and lists. Understanding this is crucial, especially when multiple jurisdictions are involved. It’s necessary to navigate regulations accordingly, often when rules may change with little warning and even less publicity. The challenge is not only to understand these complex requirements but also to adapt to them in real time.
Beyond Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF)
While AML and CTF regulations remain fundamental to compliance, they are only part of the story. It’s equally important to stay current with the latest lists of politically exposed persons (PEPs) and sanctioned individuals, and to monitor transactions effectively. The complexity of this situation is explained very convincingly in the January edition of Financier Worldwide* by Menelaos Karampetsos of US lawyers Brown Rudnick LLP’s London office. It’s an article worth reading.
These lists can change frequently, reflecting the fluid nature of global politics and international relations. The task of monitoring and responding to these changes is daunting. Failing to comply can result in severe penalties, not just in financial terms but also in reputational damage.
Human Limitations in Compliance Management
Humans will always keep a key role in compliance. For example, there’s real skill in ensuring an effective watch over geopolitical trends. Keeping an eye on who’s doing what and where will help identify countries next affected by regulatory change.
However, the sheer volume and complexity of keeping up with the details across multiple jurisdictions is a Herculean task. For human teams, even those equipped with the best intentions and expertise, it’s becoming increasingly impractical to manage these demands effectively. The risk of missing a critical update or misinterpreting a regulation is always present. This is where technology can step in as an invaluable ally.
A Comprehensive Solution for Compliance Challenges
Enter Compli, from Essiell Compli – a suite of services designed to address these very scenarios. Compli is not just a tool; it’s a partner in the compliance journey. It offers a robust platform that stays up to date with regulations, PEP and sanctions lists across multiple jurisdictions. It functions globally in real time. Thus, accurate information allows financial institutions to make informed decisions, ensuring compliance with the latest global regulations.
The Benefits of Leveraging Technology in Compliance
By integrating Compli into their operations, banks, credit unions and other institutions can significantly reduce the risk of non-compliance. As well as comprehensive KYC checks, it provides continuous transaction and behaviour monitoring, quickly identifying atypical or suspicious actions and trends.
The system’s ability to track and analyze vast amounts of information from multiple databases efficiently means that compliance teams can focus on strategic decision-making, rather than getting bogged down in the minutiae of regulatory changes. Compli ensures updates are not just timely but accurate, providing peace of mind for hard-pressed compliance officers.
Navigating Compliance with Confidence
Responding to the complexities of global compliance requires more than just a thorough process; it requires the right tools. Compli provides a comprehensive solution that allows financial institutions to stay ahead in this ever-changing future. With this support like this, financial institutions can operate with confidence, knowing their business is safeguarded both today and tomorrow.
By Declan Morton, staff writer at Compli and Essiell-Compli.
*In the eye of the storm: financial crime compliance in volatile times, by Menelaos Karampetsos in Financier Worldwide, January 2024.