The New Way Banks, FinTechs Are Fighting Financial Crime
Financial institutions’ (FIs’) efforts to meet regulatory compliance standards have become more complicated in the digital age. The acceleration of payments technology has amplified risk and the danger of an ineffectual anti-money laundering (AML) and anti-fraud strategy.
Many legacy risk strategies used by established FIs are often based on risk management models ill-suited to the complexities of modern money laundering and fraud. Critical data is siloed as AML is often considered to be a matter for compliance teams, while fraud is frequently viewed as a matter of security.
The “FRAML Payments Guide: How To Deploy A Holistic Risk Hub,” a PYMNTS and Featurespace collaboration, reveals how an integrated approach to fighting fraud and money laundering can improve risk management outcomes. The playbook provides a quick-start guide to identifying cyber-risk vulnerabilities and noncompliance risks and explores the tools to help FIs bolster their fraud prevention strategies.