International compliance specialists gathered at the ACTICO Compliance User Group on September 19, 2017. They wanted to find out what new regulations there will be for banks and insurance agencies and how the new provisions can be integrated into their companies’ structures.
"Only those who have completely industrialized and digitalized their processes can participate at the cutting edge."
Prof. Dr. Bernhard Koye, Swiss Institute for Financial Training
Prof. Dr. Bernhard Koye conducted a study to determine the extent to which industrialization has advanced among Swiss banks. He concluded that only 41% of them have a clear industrialization strategy. This means that a strategic orientation on standardization, automation, and specialization is indispensable if efficiency potentials are to be taken advantage of.
LGT reports success in automation using a central rules engine (ACTICO Rules). The administra-tion, modelling, and management of the company’s own rules is now within the IT team’s area of responsibility. The advantages are an improved general overview and a minimization of redundant rules. The central approach also allows decentralized modelling of rules by departments such as Compliance. The next step is the pilot phase for DMN modelling.
Clear efficiency gains at Bank Vontobel: The name and transaction screening against the World-Check Premium list is being placed on a new footing. The objective is to improve technical processes, manage the rise in number of hits, and become significantly more efficient. The new software for screening names and transactions clearly improves cross-checking against around three million World-Check entries: The false positives fell, and true hits can be efficiently verified.
A constant rise in the number of regulations increases risks and penalties for banks. This is precisely why relationship managers are dependent on automatically generated answers in real time when they have compliance questions. These demands can be fulfilled when compliance rules are modelled with DMN. The new Avaloq Business Rules Standard Adapter simplifies the modelling of compliance rules, such as those for cross-border or suitability, improves cooperation between IT and Compliance, and improves the reliability of compliance.
Daniel Thelesklaf, Director of FIU and Chair of Moneyval at the Council of Europe, talks about FATF mutual evaluation processes and ratings. The objective is to provide essential support in maintaining consistent and effective implementation of FATF standards. The process encom-passes the following: highlighting risks in the country, giving a clear direction for policymakers on the most important priority measures needed to build effective AML/CFT controls, and enabling FATF to exert pressure on the country to fully implement the AML/CFT standards.
Those responsible for compliance must manage a wide range of issues: Anti-money laundering, fraud prevention, KYC, prevention of market abuse, etc. More will be added in the future: Investor protection according to PRIIPs. MIFID II and FIDLEG, beneficial ownership information according to the EU Money Laundering Directive, General Data Protection Regulation GDPR. Standardization is necessary if the jungle of rules is to be eliminated and processes made more transparent. The ACTICO Compliance Suite offers the requisite technological and subject matter basis.