What do we mean by ‘Consistent Compliance’? Whilst we all know that Anti-Money Laundering (AML) regulations are continuously updated to address emerging risks, processes and procedures should remain consistent. This concept brings about the importance of consistency when meeting internal policies which reflect changes in regulatory requirements.
It is a legal requirement for all regulated firms to have AML Policies, Controls and Procedures (PCPs) in place which ensures that money launderers cannot exploit their services to legitimise the funds obtained through criminal activity. This involves outlining steps which must be taken by all staff within the firm when a certain event occurs. This could be suspicious activity being identified, or acceptance of certain types of documents. The firm must undergo annual training or at least, when necessary, to stay updated with the latest requirements to remain compliant and avoid fines.
This manual process is resource intensive and time-consuming, and can be difficult to monitor ongoing activity to ensure it’s adherence. One of the most undervalued use of technology is to apply system-wide changes for each user to follow a desired process along with when these changes were made, by whom and why. This could mean enforcing certain documents to be accepted, ensuring all the right checks are made and requesting a final review from the designated Compliance or Reporting officer before a client can be approved. This reduces friction in the overall process and allows employees to operate in confidence knowing that they are doing all that is required of them when reviewing new and existing clients.
Outlined, are some additional benefits to be gained when applying the right technology to consistently reach compliance:
How long does it take to review your high-risk clients and how often is it done?
For many firms still relying on outdated computer-based filing systems or even physical filing systems, the process can be cumbersome and time-consuming. Without a centralised platform to aggregate client risk information, obtaining an effective overview of the firm's risk profile becomes challenging. This lack of centralisation makes it difficult to efficiently manage high-risk clients, often leading to delayed responses and missed oversights. A modern, integrated system is essential for streamlining these processes, providing real-time updates, and ensuring comprehensive risk management.
Has your client finished their onboarding? Do they need to be reminded to finish the process? Keeping track of a client's onboarding status can be a manual and fragmented task. Automating this process not only saves time but also ensures no client falls through the cracks. Automated reminders can streamline workflows, reducing administrative burdens and improve client satisfaction. An automated system can provide real-time updates on onboarding progress, send timely follow-ups, and helps maintain a smooth and efficient onboarding experience for all clients.
When was the last time this client was reviewed? By whom? And what were the outcomes? Each of these questions must be answered when auditors come to visit. Without a reliable system, tracking and retrieving this information can be tedious and error-prone. Having a platform that consistently captures and organises this data provides a comprehensive audit trail, ensuring all actions are documented and easily accessible. This not only saves valuable time during audits but also enhances accuracy and compliance. With automated documentation, firms can ensure transparency, streamline review processes, and maintain a robust and reliable record-keeping system.
In a competitive market, efficient collaboration and organisation within the firm are critical to it's success. A comprehensive platform not only streamlines internal processes but also enhances communication and coordination across teams. This improved efficiency translates directly into better client service, as tasks are completed more quickly and accurately. Satisfied clients are more likely to refer your firm to others, driving organic growth. Additionally, a well-organised firm can more effectively respond to market changes and client needs, positioning itself as a leader in the industry.
Access to real-time data and comprehensive analytics allows firms to identify trends, measure performance, and make informed decisions quickly. By analysing client interactions and operational efficiency, firms can uncover opportunities for improvement and innovation. Data-driven insights enable proactive management of client relationships, anticipating needs and addressing issues before they escalate. This strategic use of data not only enhances internal processes but also improves client satisfaction and retention.
These are but a few benefits which Validient believes firms would benefit from when adopting a platform that can utilise data in such a way, taking away a large portion of the administrative burden of AML compliance, allowing professionals to focus more on their core activities and client relationships. By automating routine tasks, providing real-time insights, and ensuring thorough documentation, Validient's solution not only enhances operational efficiency but also consistently strengthens compliance and risk management.
To see how Validient can help your firm with AML compliance, client onboarding and risk management. Visit our website here.
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