Anti Money Laundering Regulation and Supervision Reduces Risks to Financial Systems and Protects Consumers of Financial Services
Since the original formation of the Financial Action Task Force in 1989, and then after the event of 9/11, there has been an ever-increasing emphasis for every country to implement an effective Anti Money Laundering (AML)/ Terrorist Financing (TF) regulatory framework. Since 1989 there have been four significant revisions to the FATF recommendations to policy makers globally. In addition, participating countries are now implementing the fourth round of Mutual Evaluation Reports (MER). All of these bring the effectiveness of individual countries AML policy and TF policy frameworks into focus. This directly affects the reputation of that jurisdiction within the International Financial System.
This scrutiny drives AML policy and AML regulations within each of these jurisdictions, and then transfers the supervisory oversight to a Financial Intelligence Unit within the conduct regulators for the various sectors of the country’s financial system. Typically, these financial regulators are taking a risk-based approach to the supervision of their entities with this AML regulatory framework to monitor the effectiveness of those entities and their AML policies. This risk-based supervision relies on quantitative and qualitative analysis supported by a combination of desk and on-site examinations. The emphasis in this supervision is typically ensuring the entities have the appropriate AML policies in place, AML processes to implement those policies, educated staff aware of the policies, and internal assessments to ensure AML compliance.
SQL Power Suite Meets the Data, Analytics and Examination Support to Proactively Supervisor Anti Money Laundering Compliance
Proactive supervision of AML compliance revolves around the proactive supervision of examinations. In support of these examinations financial regulators must have a 360° view of the entities they are supervising. This view must include a record of details of the entity, a list of key people, immediate access to all data submissions, document management for qualitative data, attachments to past examinations, dashboards and drill down access to all quantitative data submissions of Suspicious Transaction Reports. The SQL Power Suite keeps everything in one place to support the examiner and to ensure complete AML compliance.
Once an examination is started, the SQL Power Suite has the workflow tools to manage all steps in the process:
- from notification to the entity
- requests for advance information
- support for secure digital filing of that advance information including
- transaction detail
- customer records
- AML policy and processes
- analytic tools to review and compare those filing to past filings to identify technical non-compliance,
- the ability to manage, track and record in person and electronic communication between the examiner and the entity’s staff.
The SQL Power examination workflow also allows for individuals external to the Financial Intelligence Unit to be included in the project under clearly defined roles that permit the assignment of tasks and/or access to specific aspects of the examination. This is useful in efficiently managing the process with the compliance officer of the assigned entity, and it also supports cross departmental coordination with the financial regulators and other government agencies.
All of SQL Power’s AML solutions are created to easily integrate with existing core CRM and governance systems, leveraging existing data and technology for a seamless integration. Our experienced team of engineers works within your business scale to ensure that our software implementation is smooth and functionally sound.
If your organization could benefit from SQL Power’s advanced AML solutions, we’d love to hear from you!