The Foreign Banking Association in the Netherlands invited Regxsa to share their insights of the blind spot they discovered in the AML-space. Mr. Abhishek Dwivedi, Founder & CEO at Regxsa, presented his findings of over 16-years’ experience and that advanced technology will help FI’s to fight criminals and catch the ones who have successfully bypassed the ML/TF systems.
Mr. Dwivedi shared his view on how difficult it is to detect ML/TF patterns of customers who are staying below the radar. Despite huge investments from FI’s in Onboarding, KYC/CDD, Name Screening, Transaction monitoring there are still customers who passed all checks but are abusing the financial system and are laundering millions! FI’s are still working in silos, even in the same company, which is a major problem. FI’s hardly share any experiences neither inform the financial community leveraging best practices. Most importantly, we still see today that investigations are primarily manual processes.
Regulators are also pushing hard that FI’s meet not only regulations but do everything they can to be on top of the whole process, from onboarding to SAR Filing. Mr. Dwivedi explained that focusing on investigations is the missing link and also very time-consuming at FI’s. FI’s are still not able to detect new patterns and suspicious activities which have not been noticed at the end of the chain (wrong in = wrong out!).
Technology should be the enabler to leverage expertise and to break down the silos. Boosting the investigation process with their investigation platform Alexis will drive efficiency by saving significant time (up to 50%). Furthermore, Alexis enables FI’s to pro-actively assess exposures which is not only appreciated by regulators but you show you have done everything you can to prevent your FI from being exposed.
AND, most important, by sharing expertise at a platform we are able to learn from each other, as a society we can quickly act on new threats and share our findings. Consistency across banks will protect not only the financial sector but also our community.
