The stakes have never been higher for those charged with overseeing compliance, anti-fraud, and anti-money laundering efforts, as demanding regulations and subsequent enforcement actions are on the rise.
Per a recent Accenture report, AML-Compliance related expenditures have increased by more than 50% over the last three years. In addition, the number of Suspicious Activity Reports filed has increased exponentially in the past few years, increasing the amount of resources needed to produce the reports (and increasing the pressure if these reports are filed late, or incomplete).
Leading organizations are realizing that operating cost centers with a “check-the-box” compliance approach is a thing of the past. Instead of playing catch-up with increasing regulatory requirements and unrelenting attempts at fraudulent behavior, these firms are staying ahead of the curve by implementing innovative technologies that expedite and improve processes around data validation, fraud detection, investigation, and reporting.
Taken from a whitepaper co-written with Deloitte, Innovation Ushers in the Modern Era of Compliance, here are four steps that will help modernize your firm's compliance and anti-money laundering reporting efforts:
1. Provide relevant, compliant reporting
Ensure all stakeholders, from internal audit and legal teams, to regulatory bodies, to chief executives, know what happened in a way they easily understand: natural language.
2. Automate. Automate. Automate
For many firms, collecting, validating, and reporting information has been a manual exercise, at least during the first two years following the implementation of new rules. Such processes are susceptible to errors and inconsistencies. Automating data gathering, validation, and reporting processes (through technologies like automated narratives) can help to reduce risk and improve accuracy from a regulatory perspective, and also frees employees to spend more time on high-value tasks.
3. Avoid black boxes
Answers alone from your analytic and case management systems should not be taken at face value. In addition to subject matter experts and trained professionals, technology that can explain the analytics performed “under the hood” and provide traceability back to the system of record will become the compliance officer’s trusted ally as regulations and technological sophistication continue to increase.
4. Shift the cost-center mentality
By reducing manual reporting processes, advanced natural language generation has enabled organizations to devote their employees to high value activities, making them more efficient and directly impacting the bottom line.