No Match Found
Money Laundering continues to be a significant problem across the world, with some estimates putting the value of illicit funds channelled through the financial services sector at up to $2 trillion.
Whether it’s anti-money laundering (AML) or counter-terrorist financing (CFT), there’s no question that regulation is getting tougher, more frequent, and more expensive to manage: global spending on AML compliance could top $8bn by 2017. It’s also costing more not to comply with it, with larger fines and a potentially disastrous impact on corporate reputations. This is reflected in the global survey results, with the two biggest challenges identified as the pace of regulatory change and the lack of skilled staff.
Take a look at how respondents from different territories and industries responded to our questions regarding Anti-Money Laundering.Explore Anti-Money Laundering
Take a look at how respondants from different territories and industries responded to our questions regarding Cybercrime.Explore Cybercrime
The Middle East region has special challenges here, with an unusually wide range of both international banks and local banks with a global presence. There is also a very high level of money service businesses and cash transactions, combined with global trading hubs and a geographical proximity to unstable or sanctioned locations.
What’s interesting is the sharp discrepancy between the global and the Middle Eastern results in these two key areas. We recognise the difficulty in securing skilled resources in the region, and this clearly shows the increased demand from financial institutions to get the right people.
71% of Middle Eastern respondents have been through a regulatory inspection in the last two years compared to 50% globally
The emphasis Middle Eastern companies are playing on ‘Know Your Client’ measures is very much on point. Whether you’re a bank or another type of business, you need to know who you’re dealing with. This has never been more important than it is now, with so much business being transacted remotely, with people you will never meet. But by doing business that way you are – in effect – putting your brand in their hands.
As in other areas of economic crime, data collection and analysis can play a hugely helpful role, both in monitoring and detecting potential AML or CFT activity. New digital infrastructure could cut costs and improve efficiency, but many banks are hampered by cumbersome unconnected legacy systems that are no longer fit for purpose, but are too expensive and difficult to change. 35% of respondents in the Middle East say data quality is an issue (as against 33% globally), 18% are struggling with upgrading or implementing systems (24% globally), and 34% have systems that generate large numbers of false positive alerts (23% globally).
The emphasis Middle Eastern companies are playing on ‘Know Your Client’ measures is very much on point.
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