In recent months, there has been a rise in media reports of European banks’ alleged negligence or wrongdoing regarding suspicious transactions. However, inadequate monitoring and reporting as regards to anti-money laundering (AML) and counter-terrorist financing (CTF) obligations have been a problem for some time, and its impact is proving significant in more ways than multi-million-dollar regulatory sanctions.
In part of this media attention, several banks have been subject to adverse media reports, noting the closing of certain types of business activities, departure of senior management, charges being laid, and credit rating downgrades.
Avoiding these consequences requires a combination of legal, commercial and forensic expertise to achieve a customised solution for detecting and preventing AML/CTF activity.
Therefore, the right team must have an understanding of customer risk-profiling and monitoring arrangements.
FRA Consultant, David Luijerink, discusses this further in his article ‘Staying Alert in Fight against Crime through Effective Risk Analysis’ featured in the July edition of The Lawyer.