Financial Crime Prevention | Financial Services
A major financial services firm enlisted our expertise to strengthen their financial crime prevention framework. This project stemmed from internal reviews and regulatory demands, aiming to implement strong measures against money laundering, fraud and other financial crimes.
Who is the client?
The client is a leading provider of financial services, offering a variety of products including consumer loans and financial solutions.
The problem
The main challenge was to thoroughly review and enhance the company's financial crime prevention framework. Key focus areas included refining transaction monitoring rules, updating financial crime policies and ensuring compliance with anti-money laundering (AML) regulations. This comprehensive approach enabled us to address identified gaps in current processes that could affect the company's operational efficiency and regulatory adherence.
The backstory
The initiative for the review stemmed from internal assessments that revealed potential vulnerabilities in the financial crime prevention framework and compliance procedures. To address these issues, the company engaged Edmund to perform an in-depth evaluation and offer recommendations, ensuring that the company's operations were aligned with industry best practices and FCA regulations.
The Edmund Group Solution
After conducting a thorough assessment, Edmund crafted a detailed plan to resolve the identified issues. The review featured the following strategic enhancements:
The transaction monitoring rules were reviewed and updated to ensure they were comprehensive and aligned with the company’s risk profile. This process involved refining thresholds, implementing sandbox testing and developing enhanced rules for monitoring high-risk activities;
The financial crime policy was strengthened to cover all pertinent areas, including money laundering, terrorist financing, sanctions, PEPs (Politically Exposed Persons), fraud, bribery and corruption. The policy was updated to reflect the latest regulatory requirements and best practices;
Targeted training programs were implemented to improve staff understanding and management of financial crime risks. This included role-specific training for employees exposed to higher risks;
A documented policy and procedures for incident management were established, encompassing the identification, escalation and reporting of financial crime incidents. This ensured a timely and effective response to potential financial crimes; and
Governance frameworks were strengthened to ensure robust oversight of financial crime prevention measures. This included updating the roles and responsibilities of senior management and the board in monitoring and managing financial crime risks.
The outcome
Upgraded transaction monitoring rules and financial crime policies, which led to more effective detection and prevention of financial crimes;
Enhanced governance structures to provide better oversight and decision-making, ensuring that financial crime risks are managed efficiently;
Refined compliance processes to ensure continuous adherence to FCA requirements, reducing the likelihood of regulatory penalties; and
Targeted training programs which enhanced staff understanding of financial crime risks and management strategies, resulting in a more informed and proactive workforce.
