Knowledge Base
Business insights and articles written by our team of world-class professionals
Sanctions Compliance at Scale: Meeting 2025’s Demands with AI
Sanctions compliance has always been a high-stakes responsibility, but in 2025, it has become exponentially more complex. The convergence of rising geopolitical uncertainty and the surge in dynamic regulatory activity has placed immense pressure on financial institutions to identify and mitigate risk at an unprecedented scale and speed. Traditional compliance models, built on static rules, manual list updates, and overburdened analysts, are no longer sufficient to meet this challenge. As the threat landscape evolves, the limitations of legacy systems become more apparent. Static name-matching engines often miss nuanced connections or generate overwhelming volumes of false positives. Meanwhile, sophisticated networks of bad actors leverage intermediaries, shell entities, and multilayered ownership structures to evade detection. This results in compliance teams buried in
Romania Updates Its AML Legislation: Law No. 86/2025 Promulgated Following Moneyval and EU Recommendations
In a decisive move to strengthen its legal and institutional framework against money laundering and terrorist financing, Romania has officially updated its primary anti-money laundering legislation. By Presidential Decree No. 685/2025, Law No. 86/2025 was promulgated, amending and modernizing Law No. 129/2019. This legislative development comes in direct response to key recommendations from the Council of Europe’s MONEYVAL 2023 Mutual Evaluation Report, as well as the European Union’s 6th Anti-Money Laundering Directive (AMLD6), which sets higher standards for EU member states in combating financial crime. Key Drivers Behind the Amendment Notable Changes Introduced by Law No. 86/2025 While the full text of the amended law is pending publication in the Monitorul Oficial, early summaries indicate several major updates: Regional and
FATF February 2025 Plenary: Key Outcomes and Global Impact
The Financial Action Task Force (FATF) held its February 2025 Plenary from the 19th to the 21st in Paris, marking a critical moment in the global fight against money laundering, terrorist financing, and other financial crimes. Under the leadership of FATF President Elisa de Anda Madrazo of Mexico, representatives from over 200 jurisdictions and international organizations gathered to discuss pressing financial security issues and update global compliance standards. Strengthening Financial Inclusion A major development from the Plenary was the FATF’s decision to revise its Standards to enhance financial inclusion while maintaining a risk-based approach to anti-money laundering (AML) and counter-terrorist financing (CFT). The organization aims to balance financial security with increased accessibility, particularly for underserved communities. To ensure a transparent
The Sixth Anti-Money Laundering Directive (6AMLD): Key Provisions and Compliance Challenges
Understanding the Sixth Anti-Money Laundering Directive (6AMLD) The European Union (EU) has been at the forefront of the global fight against money laundering and terrorist financing. Over the years, it has developed a robust regulatory framework to address the evolving challenges posed by financial crime. The Sixth Anti-Money Laundering Directive (6AMLD), which came into force on December 3, 2020, and became applicable to regulated entities from June 3, 2021, represents a significant step forward in strengthening the EU’s anti-money laundering (AML) efforts. This article explores the key provisions of 6AMLD, its implications, and how it differs from previous directives. Key Objectives of 6AMLD 6AMLD was introduced to close loopholes in the previous directives, harmonize criminal liability, and increase enforcement measures
Tactics for an Effective AML Program in Challenging Times
An effective Anti-Money Laundering (AML) program is essential for ensuring financial transparency, preventing illicit activities, and maintaining the integrity of global financial systems. As financial crimes evolve and become increasingly complex, AML practices must remain adaptive, innovative, and resilient. This article outlines key tactics for building and maintaining an effective AML program that addresses contemporary risks while fostering ethical and practical compliance. 1. Comprehensive Risk Assessment The foundation of a successful AML program lies in understanding the specific risks faced by an organization. This involves: 2. Independent Oversight and Governance Strong governance ensures that AML practices are implemented with accountability and integrity. 3. Leveraging Advanced Technology Technology plays a pivotal role in enhancing the efficiency and accuracy of AML efforts:
Essential Strategies for Fraud Prevention in E-Commerce
With the continuous growth of e-commerce, fraud has become an ever-present threat. E-commerce platforms handle vast volumes of transactions daily, and as digital fraud techniques become more sophisticated, it’s crucial for online businesses to stay proactive about protecting their assets and customer data. This article explores various strategies and best practices to help e-commerce businesses prevent fraud, protect customer trust, and ensure safe and seamless online shopping experiences. 1. Understanding Types of E-Commerce Fraud To effectively prevent fraud, it’s essential to understand the different types that commonly occur in e-commerce. Here are some of the most prevalent types: 2. Leveraging Technology for Fraud Detection and Prevention Modern technology offers several solutions that e-commerce businesses can use to detect and prevent
Adverse Media Screening: Importance and Best Practices
In today’s fast-paced, interconnected world, adverse media screening has become an essential part of due diligence, compliance, and risk management for businesses. Companies increasingly rely on media to uncover potential risks about individuals or organizations they might engage with, especially to comply with stringent regulations aimed at preventing financial crimes, such as money laundering, fraud, and terrorism financing. This article will explore the concept of adverse media screening, its challenges, and best practices to implement an effective screening process. What is Adverse Media Screening? Adverse media screening (AMS), also known as negative news screening, is the process of scanning various news sources and media outlets to identify any negative information regarding a person or an organization. This screening aims to
Securing the Future: The Benefits and Risks of Biometric Authentication
In an increasingly digital world, security is paramount. Among the various methods used to ensure privacy and safeguard data, biometric authentication has gained significant popularity. This technology leverages unique biological characteristics, such as fingerprints, facial recognition, voice, or even iris patterns, to authenticate users. Biometric authentication is used across industries, from unlocking smartphones to securing bank transactions. However, while this technology offers numerous benefits, it also presents several risks. Benefits of Biometric Authentication Risks of Biometric Authentication Balancing the Benefits and Risks To maximize the benefits of biometric authentication while mitigating the risks, organizations must take proactive steps: Biometric authentication is revolutionizing the way people interact with technology, offering enhanced security and convenience. However, the risks surrounding privacy, data breaches,
Enhanced Due Diligence (EDD): A Critical Component in Risk Management
Enhanced Due Diligence (EDD) is a vital process in the field of risk management, especially within the financial industry. Unlike standard due diligence, which involves basic checks on clients, EDD is a more comprehensive examination, applied to high-risk customers or transactions that pose greater potential risks of money laundering, terrorist financing, or other illicit activities. EDD goes beyond the usual Know Your Customer (KYC) protocols. It involves gathering more in-depth information about the customer’s background, business activities, and sources of funds. This might include detailed financial statements, the identification of beneficial owners, and the scrutiny of any potential political connections, particularly if the customer is a Politically Exposed Person (PEP). The goal is to fully understand the nature of the
