Legacy AML risk assessment models not up to challenge of evolving risk management

Manual risk assessments using Excel spreadsheets or Word documents are no longer up to the challenge of effectively managing anti-money laundering and combating the financing of terrorism risk.Quinn says: “At the heart of any AML programme is the enterprise-wide money laundering and terrorism financing risk assessment.

For large financial institutions, the challenges around risk assessments are compounded by the multitude of risk indicators to be considered. Quinn explains: “The onus is on them to identify and assess their money laundering risks around where customers are, what entity types their customers are, what proportion of their customer base is high risk and the characteristics of various products and the risks associated with these.

Lizette Sander, Product Manager at Bateleur Software, adds: “South Africa’s AML/CFT regulations also apply to designated non-financial organisations. So, any organisation must know who they are dealing with, but most don’t have the capacity to screen customers.” “In addition, most banks only have around 100 risk indicators, which don’t really reflect the complexity of the risk across their enterprises. At Arctic Intelligence, we spend a lot of time working with advisory partners helping organisations deconstruct their manual methodologies and reconstruct them digitally,” he says.

Arctic Intelligence’s Risk Assessment Platform is purpose-built for larger, complex organisations that must identify, assess, mitigate and manage financial crime risks. Our subject matter experts have developed risk and control libraries for various financial crime risk domains, including money laundering and terrorism financing, sanctions, bribery and corruption, fraud, modern slavery, wildlife trafficking and correspondent banking.

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