Financial Institutions (FIs) face an anxious and uncertain future, as they wait for criminals to strike and regulators to descend. Nor can they ignore digital developments, because their customers demand them and criminals exploit them. But tackling these problems requires huge amounts of data, vast numbers of employees to process it, and big costs.
New ‘entity risk’ approaches promise to surmount the problem of organizational and geographic ‘silos’ inherent in monitoring transaction risk, enabling FIs to build three-dimensional pictures of risky entities. Automation can help to reduce employee costs, particularly within a centralized system.
Financial Intelligence Units (FIUs), which offer a way to centralize and automate, are already proving popular with FIs. But there are many definitions and types of FIU, and each FI will have its own idea of what constitutes a successful unit.
New research by Chartis and NICE Actimize pinpoints an effective starting point – to view the FIU as a technology infrastructure with three essential elements: strong, clear leadership, a pragmatic data strategy, and powerful case management. While developing a truly effective FIU is a long, complex process, by starting with these three essentials FIs can transform the FIU into a valuable resource in financial crime risk management and protection.