Compliance
The Source Of Wealth Verification Challenge – A Selection Of Recent Coverage
As the topic of verifying "source of wealth" becomes more prominent as a regulatory technology, compliance and competition concern in different jurisdictions, we set out a summary of the main stories that we've covered in recent weeks.
When the process of onboarding even the more “ordinary” clients can take banks and other financial institutions weeks or even months to complete, it creates problems. Of course, the most sophisticated, ultra-HNW clients might be content with a long onboarding journey because they know that if a bank is worth using, it is important to go through the process. But even so, protracted onboarding is a turn-off. Recently, the client lifecycle management and compliance solutions firm Fenergo reported that more firms say they are suffering “onboarding abandonment.” (See below.)
A large topic, and one that is likely to grow in importance, is what is called “source of wealth” verification. With regulators trying to weed out dirty money and protect jurisdictions’ reputations, the obstacles to rapid onboarding are not going away. Technology is an obvious potential “fix” – but human judgement remains important. Bank of Singapore, to give one example, has developed a source of wealth application to help lighten the load. A mass of firms, such as smartKYC, Fenergo and LexisNexis, operate in this space.
Given the range of stories and commentaries on these topics, the editors decided to list some of what we think are the most important items in recent weeks. We hope those in business development, compliance and other roles can see the value of what our news service does so that they can obtain actionable news and content on these vital, sometimes make-or-break, subjects. As ever, if you have comments, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com
Here is a selection of articles that touch on the work being done by banks and others to handle AML, KYC and CTF obligations.
Asia, Europe and the Middle East
OPINION OF THE WEEK: Singapore Appears To Be Clamping Down On Slack Practices
Bank of Singapore Deploys AI To Accelerate Source Of Wealth Verification
More Financial Institutions Suffer Onboarding Abandonment
Private Banks' Onboarding Limitations Revealed – And How To Fix Them
Drawn-Out KYC Is Costing Banks New Clients; Singapore Particularly Hit – Fenergo
Compliance Corner: AML Systems Spending Seen Surging
"Deep-Dive Due Diligence" – Onboarding HNW Clients
KYC Screening With Open-Source Intelligence: Balancing Risk Detection, Client Privacy
Transatlantic Data Flows, Privacy In Focus After EU Court Ruling
Many Firms Still Aren't Ready For UK's Fraud Prevention Regime –
Dentons
North America
Deadline Approaching For Input On AML Rule Changes
US Treasury Delays AML, CTF Regulations For Two Years
RIAs Face "Added Burdens" As Deadline For New AML Rule Looms
How RIAs Are Reacting To – And Preparing For – New AML Rule