Compliance Failures of 2018

As the festive period is nearing, it is interesting for anyone within the compliance industry to look back at the array of scandals that have hit our industry this year. Despite many being entirely preventable, many question why so many institutions have failed to do their proper due diligence on its customers, or even implement the correct internal controls in order to prevent massive internal failures when the regulations have been in place since the 1990s.

There has been much commentary in the last few years that when it comes to financial crime compliance, many are not prudent enough with their efforts in preventing money-laundering and fraud. One of the most notable, and recent scandals was Danske Bank’s violations of numerous financial crime controls, that is, including obtaining a source of funds documentation, as well as failing to identify correct beneficial ownership structures. Danske was not alone in their violation of regulation; Deutsche Bank was fined in the last month by the Reserve bank of India for failing to comply with know your customer (KYC) and anti-money laundering (AML) standards.

At the end of October, the National Economic Crime Centre (NECC) was launched. With the collaboration of major government agencies and prominent private institutions, the NECC aims to combat the surge of economic crime that the UE has seen in the last few years specifically within the United Kingdom. The NECC has four priority areas, which it hopes, by directly combatting, will help reduce the number of individuals and institutions committing an economic crime:

  1. Tackling laundering and criminal assets;
  2. Leading the UK law enforcement to domestic and international bribery, corruption and sanctions;
  3. Ensuring that NCA proactive investigation capabilities are deployed against high priority economic crime threats in support of partner agencies, such as the Serious Fraud Office (SFO) and Financial Conduct Authority (FCA); and
  4. Leveraging changer in the economic crime operating environment, specifically in relation to the relationship between the financial sector and relevant law enforcement agencies.’

So how can Lysis help?

Due to increasing regulations and awareness of the importance of CLM and AML, many firms still struggle with the challenges these critical business functions present. Here at Lysis, we have the ability to help you create specialised training programmes, as well as AML and managed service options to help combat the challenges that many of us are presented to us today.

For firms who wish to enhance their agility and effectiveness of current KYC resourcing, Lysis has a unique award winning partnership with iMeta, which enables the creation of ‘one-stop shop’ managed services solutions, to aid with the client onboarding and Client Lifecycle Management requirements.

Our AML Innovations Lab also give institutions the ability to test and assess the grounds for a wide range of AML initiatives including policy and process streamlining, improved Management Information (MI) solutions, new systems and new data sources. Successful initiatives are then presented back to the client in order to establish the best solution possible.


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