A recent circular provided by CySEC assessing the degree of AML and CFT compliance by regulated entities, identified good practices implemented within the scope of AML and CFT efforts. However, considering the number and nature of weaknesses that were also found, there is considerable room for improvements.
The good practices identified, is a good indication of the Regulated Entities’ strategy to align their business proceedings with compliance specifications. Below follows a brief representation of good practices acknowledged:
• Regulated entities strive to achieve Reduction of ML and TF hazards with the establishment of good Know your Customer (KYC) processes
• Continuous updating with relevant AML policies as a means to be ahead of compliance requirements, is also identified
CySEC’s inspections allowed the regulator to have a good overview on weaknesses identified, within the scope of AML Compliance. Some of these relate to the following parameters:
• Inadequate Risk understanding as a result of insufficient customer information
• Insufficient Due Diligence information throughout the establishment of the business relationship with clients
• Not coherent customer’s economic profile as a result of not following a Risk Based approach
• Overlooking of important client information as a result of dispersed documentation on customer’s Due Diligence
• Increased possibility of ML risks as a result of poor Transaction Monitoring
• Some regulated entities still use manual procedures which could be especially damaging on safe monitoring of Transactions movements and fraud occurrence
• Not consistent and regular risk assessment/risk classification
CySEC’s finding especially on the deficiency part is the main focus of iSPIRAL’s RegTech expertise and knowledge. With a particular emphasis on ASP’s, CIF’s, Investment Firms as well as the banking sector we help organizations overcome these shortages.
With a clear understanding of CySEC’s vision “to ensure a healthy development of the securities market”, iSPIRAL has developed the most comprehensive approach to any organization looking to update and bring in place good if not excellent AML Practices.
Our solutions’s DNA carries the risk based approach in their dynamic and offer products which streamline the above problematic areas of AML Management.
How exactly does iSPIRAL excel in this?
• Its solutions embed transaction monitoring with an intelligent Transaction Monitoring Engine - Identify and manage fraudulent activity
• It provides Ongoing Monitoring for consistent and undisrupted customer risk classification
• In accordance with the relevant directive of “verification of the identity of non -face to face customers”, the solutions offer clever and high impact electronic identity verification solutions
• It has facilitated the provision of Enhanced Due Diligence procedures throughout the business client relationship cycle with constant updating of information
• The solutions provide coherent and efficient Case Management
iSPIRAL comprehends that although a successful customer onboarding rate is good for business and thus profitability, it is not sufficient to keep your AML ethos at high standards.
If you wish to find out more on how iSPIRAL can add to your AML procedures, you can visit iSPIRAL webpage www.i-spiral.com or call on +357 24 531975