Guðmundur Kristjánsson, CEO of Lucinity, discusses the recent uptick in AML fines and what this may portend for banks and other financial institutions in the fight against financial crime.
The number of fines for anti-money laundering (AML) failures during the first half of 2020 has already outstripped those for the entirety of 2019. It’s evident, then, that we’re sitting on the cusp of another potential surge in financial crime, as the COVID-19 pandemic increases pressure on people, processes and systems across the world.
How then, can banks and major financial institutions mitigate the risk of financial crime and the increasing sophistication of money launderers, especially when criminals thrive in such chaotic and uncertain times?
History Predicts the Future
When we look back, the common denominator tying together the 21st century financial crime timeline is exploitation of a crisis. Possibly one of the most significant occurrences this side of the millennium took place on September 11, 2001 in New York City. The 9/11 tragedy prompted some of the biggest overhauls in anti-money laundering law and financial crime legislation in history, as the U.S. government sought to cut off terrorism funding at the source in the war against terror.[1]
The 2008 financial crisis provided another catalyst for…
