What risks do our clients pose?


Are we managing AML and Fraud risks correctly? Do we know what is in our books?


Know Your Customer (KYC) procedures are a critical function to assess customer risk and a legal requirement to comply with Anti-Money Laundering (AML) laws. Effective KYC involves knowing a customers identity, their financial activities and the risk they pose.


A bank should develop a thorough understanding of the inherent ML/FT risks present in its clients profile - but the truth is our controls are currently reactive based on known risks - they are in very limited circumstances agile or proactively responsive to identifying risks as they arise today.


The estimated amount of money laundered globally in one year is 2 - 5% of global GDP, or $800 billion - $2 trillion in current US dollars. Due to the clandestine nature of money-laundering, it is however difficult to estimate the total amount of money that goes through the laundering cycle.


Though the margin between these figures is huge, even the lower estimate underlines the seriousness of the problem that governments, banks, and FI's need to address.


  • In 2019, banks paid more than USD 6.2 billion in AML fines globally.
  • Over 200,000 cases of money laundering are reported to the authorities in the UK annually
  • About 50% of cases of money laundering reported in Latin America are by financial firms.
  • According to the government of India, approximately USD 18 billion is lost through money laundering each year.
  • A 1996 report published by Chulalongkorn University in Bangkok estimated that a figure equal to 15% of the country's GDP ($28.5 billion) was illegally laundered money.
  • In the UK, the total penalties from June 2017 to April 2019 on anti-money laundering non-compliance was £241,233,671.
  • Iran stands at the top of the Anti-Money Laundering (AML) risk index with a score of 8.6, the world's highest. Afghanistan comes second with a score of 8.38, while Guinea-Bissau comes 3rd with a score of 8.35.
  • Mexican drug cartels lander at least USD 9 billion (5% of the country's GDP) each year
  • Money laundering takes up about 1.2% of the EU's total GDP.
  • Completing the KYC process usually costs banks around USD 62 million.
  • 88% of consumers say their perception of a business is improved when a business invests in the customer experience, especially finance and security.


What is the challenge?


Why does financial crime continue at such a low detection rate?


Why are we lacking effectiveness?


In this webinar we will be speaking with industry experts addressing the key issues:

  1. Do we really understand the risks posed by new clients or in our client's books?
  2. Are we thinking outside the box and incorporating new typologies?
  3. How innovative are we, agile and proactive in identifying risks?
  4. What can we do better?

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