Enterprise Wide Financial Crime Management Becomes Mainstream

    Leading Financial Service Providers are Embracing an Enterprise Wide Risk
    Based Approach to Financial Crime Management, Says Datamonitor and Norkom

    BOSTON, Jan. 10 /CNW/ -

    -   More than half of all major global financial service providers have
        consolidated AML and fraud prevention across the enterprise

    -   Almost half have centralized management structures by establishing
        Financial Intelligence Units

    -   Risk-based approach and customer due diligence are the new priorities

    New research, carried out by Datamonitor on behalf of Norkom
Technologies, confirms that a radical change has taken place in the way
financial services providers manage regulatory compliance and financial crime.
Our respondents - senior decision makers in global financial services
institutions - are combining their management of both activities on an
enterprise wide basis. This change was predicted by the same research
programme one year ago, though, at that stage, only an enlightened minority
had begun the consolidation process. Today's research makes it clear that
enterprise wide management is now a firmly established business approach.
    Almost three quarters (73%) of respondents - leaders in global tier one
institutions - confirm that they are managing anti-money laundering (AML) in
tandem with other types of financial crime. More than half (53%) have achieved
this on an enterprise wide basis, embracing all geographies and business
lines. 20% are progressing towards this goal, having achieved it in some
    47% of respondents say they have established Financial Intelligence Units
in order to overcome the organisational barriers traditionally associated with
enterprise wise management and to centrally manage investigative resources. A
further 14% plan to do so within the next 12 to 24 months.
    "As we predicted, enterprise wide financial crime management is now a
reality in most major financial institutions, with those organisations seeing
significant improvements in detection rates and cost reductions as a result."
says Norkom's CEO, Paul Kerley.
    "Organizations are now focusing their attention on successfully adopting
a risk based approach - not just for AML as the regulator requires - but for
all areas of financial crime. And they expect these two new priorities to
deliver even greater business benefits."
    87% of institutions report that they have experienced or expect to
experience improvements in crime detection capability as a result of their
enterprise wide approach; 80% say they've experienced or expect cost savings.
But 93% agree that the business benefits of a risk based approach to customer
due diligence and ongoing monitoring will be even greater.
    "A risk based approach - in which the extent of monitoring attention
given to an individual account or customer is directly commensurate with the
degree of business risk they pose - is now a regulatory requirement within
AML," explains Kerley. "But far sighted organizations have recognised the
potential for commercial benefit, too, and will extend this approach to all
areas of financial crime. Costs will reduce as detection accuracy and
investigative efficiency improves. Customer responsiveness will also rise,
since low risk new business will be able to be brought onto book more

    To obtain your copy of the research report: 'Securing the Future Against
Financial Crime: Enterprise wide management and beyond' email

    Norkom is a market-leading provider of innovative financial crime and
compliance solutions to the global financial services industry.
    Used by clients in over 100 countries, including HSBC, Credit Agricole,
Fortis, Rabobank, and Washington Mutual, Norkom is proven to reduce financial
losses, protect reputation, improve operational efficiencies and lower total
cost of ownership. Norkom has operations across North America, Asia Pacific
and Europe.

For further information:

For further information: Norkom media contact: Hilary Duffy, Marketing
Manager, Norkom Technologies, Tel: +353-85-121-9414, hilary.duffy@norkom.com

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