Knowledge Base

UN sanctions lists play a vital role in upholding global peace and security. These sanctions represent diplomatic choices endorsed by United Nations member states to target states, entities, or individuals believed to be involved in unlawful activities that could jeopardize national security interests, international law, and overall peace. For enterprises, adherence to UN regulations is paramount to steer clear of legal consequences and shield themselves from potential risks.

Watchlist screening is the process of checking individuals and entities against watchlists to identify and prevent any potential financial crimes such as money laundering, terrorist financing, fraud, or other illegal activities. Watchlists are created and maintained by governments, international organizations, law enforcement agencies, and other regulatory bodies.

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.