Compliance and regulatory landscapes are changing faster than ever as governing bodies move faster to protect payments against fraud and financial crime globally. Financial criminals, however, are moving just as quickly, adapting their tactics as new efforts rollout to suppress fraud and crime. It’s a reality that becomes critical when countering the threat from bad actors across the universe of sanctions and sanctioned individuals and organizations.
The increasingly interconnected, digitally accelerated and borderless financial ecosystem exposes organizations to doing business with entities connected to organized crime, terrorism and money laundering. However unwittingly, ignorance about the implications of failing to recognize these entities doesn’t protect you from the potential consequences.
It might sound like a movie plot, but real-life financial crime isn’t entertaining. Protecting the full lifecycle of a payment in a highly digital and regulated world might seem daunting, but it’s an imperative. Failure to avoid doing business with “sanctioned entities” can lead to damaging regulatory enforcements, costly penalties, as well as reputational damage.
One key is to implement a fraud prevention solution that is SaaS-based, and which provides a real-time, full view across the journey of each payment. These solutions are easy to use, fast to implement and offer core protection across the lifecycle of your payments. And most importantly, the right solution will reduce false positives and speed-up investigations.
Consider that inefficient fraud prevention can lead to*:
- High volume of false positives, typically over 95%
- High volume of duplicate alerts, typically over 30%
- High volume of recurrent alerts, typically over 70$
- Large workloads and short timeline for alert processing
- Delayed or blocked transactions that negatively impact client experience
This is where the next generation of efficient watchlist screening tools enters. Using machine learning and artificial intelligence, these tools are disrupting traditional approaches to proactively detect and prevent financial crime. And the best solutions make all of that collected data assessable and consumable – for deploying more accurate and immediate countermeasures.
To help you learn more about watchlist screening, and how to defeat payments to sanctioned entities, here are some additional resources to guide your road to compliance:
- Disrupting Watchlist Screening with Modern Technologies – on demand webinar. Join Celent’s Arin Ray, Senior Analyst, Risk and Compliance and Bottomline’s Omri Kletter as they talk about how new technology can help you overcome the current challenges in Watchlist Screening and future proof regulatory compliance in a cost-effective way.
- The 6th AML Directive – whitepaper. Financial institutions in the European Union are facing compliance with the 6th Anti-Money Laundering Directive (6AMLD). This white paper provides an overview of the new regulations, which affect all regulated businesses in the EU.
- Reimagining Watchlist Screening – Improving Efficiency and Effectiveness with Modern Technologies – research report. Watchlist screening is at a crossroads. This full report from Celent tackles the current state of regulations, the issues legacy technology poses and how adopting modern technology will keep you and your customers secure.
- The Four Common Cornerstones of a Successful AML Compliance Program – executive brief. You’re ready to get started on building out your AML compliance solution. This executive brief from Bottomline will help you take those first steps to build the foundation of your defense.
- Bottomline Watchlist Screening – datasheet. Find out how Bottomline’s watchlist screening solution protects financial intuitions and companies from AML/CFT risks. With hyper-digitized real-time screening of transactions, payment instructions and customer data, you can keep funds and your customers safe from financial criminals.
- These companion articles from Arin Ray provide a deeper dive into Celent’s recent white paper:
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