Knowledge Base

The customer onboarding process serves as the primary and critical point of interaction between the company and its customers. It is considered the initial step that plays a vital role in safeguarding the company and mitigating risks. Notably, regulated financial institutions must adhere to AML/CTF (Anti-Money Laundering/Counter-Terrorist Financing) and KYC (Know Your Customer) regulations during customer onboarding. Ensuring compliance with KYC controls is of utmost significance, and closely monitoring financial transactions also stands as another pivotal aspect.

In the aftermath of the September 11, 2001 attacks and the passing of the Patriot Act in the United States, Anti-Money Laundering (AML) guidelines have gained significant global importance. This led to the establishment of the Financial Action Task Force on Money Laundering (FATF), influencing numerous jurisdictions to mandate financial institutions to monitor, investigate, and report suspicious transactions to their country’s financial intelligence unit.

In the UK, specific legislation targeting terrorism and crime has imposed counter-financing of terrorism obligations on banks and financial institutions. These obligations encompass customer due diligence, transaction monitoring, and reporting requirements. The UK’s laws dictate that financial institutions must implement appropriate AML controls to detect money laundering activities.

Similarly, other countries, particularly those with high crime

In recent years, account takeover (ATO) fraud has emerged as a highly critical security issue for organizations of all scales. This fraudulent activity occurs when a cybercriminal obtains a user’s login credentials for an online account, like a bank account, email, or social media profile. Subsequently, the cybercriminal exploits this access to perpetrate various forms of fraudulent activities.

The AML compliance officer holds the responsibility of ensuring adherence to anti-money laundering regulations within their organization. Their role involves supervising the establishment, implementation, and continuous monitoring of the institution’s anti-money laundering compliance program. They are also in charge of managing this program within the company, ensuring that it follows AML guidelines and takes necessary measures to combat financial crime.

Financial institutions worldwide are mandated by governments to implement anti-money laundering measures. The most recent update to the Bank Secrecy Act (BSA) enacted in 1970 came with the passage of the Patriot Act. As a result, U.S. financial institutions face an increasingly complex BSA compliance environment, which often incurs high administrative costs and severe legal consequences. To ensure compliance, it

The Financial Action Task Force is an organization that prevents the global crime of money laundering and terrorist financing. This institution, agreed by the governments, sets rules to prevent illegal activities and the damage they cause. Also, they make legal regulations in these areas.

Financial Crimes are criminal activities carried out by individuals or criminal organizations to provide economic benefits through illegal methods. Financial crimes, which have become a critical issue in recent years worldwide, cause significant harm to the economy and society. Income from financial crimes corresponds to a substantial proportion of global GDP. Therefore, regulatory bodies constantly develop new tactics to combat financial crimes. In addition, with the development of technology, criminals develop new tactics. Today’s most common financial crimes are terrorist financing, money laundering, corruption, and fraud.

The Bank stress test refers to the measurement of the losses that banks will experience in possible adverse scenarios. The analysis under hypothetical scenarios is designed to determine whether a bank has enough capital to withstand a negative economic shock. An example of these negative scenarios is a deep recession or a financial market crash.

When financial products and services are digital, verification systems should follow the lead. Today, regulatory organizations have implemented measures allowing financial institutions to conduct the onboarding process online. This is accomplished through eKYC, which simplifies the processing of financial services. The availability of eKYC online has made it easier to access digital financial goods and services such as establishing a bank account to investing and even taking a loan.

The European Banking Authority (EBA) aims to protect the financial stability, integrity, efficiency, and orderly functioning of the banking sector in the EU. The European banking authority is mandated to assess risks and vulnerabilities in the EU banking sector. There are also some EBA regulations. The European Banking Authority was established in 2011 by taking over the responsibilities of the European Banking Supervisory Board. It was created by the European Parliament and the Council of the European Union to combat financial crimes as an institution above national regulators. Headquartered in England, EBA is the most authoritative regulator of the banking industry. After the UK leaves the European Union, it is planned to shift the central position of EBA to a