Private banking is heavily regulated: AML, Anti-Bribery/Corruption, tax compliance....
Private banks have been faced with dramatic changes in their regulatory environment since the financial crisis:
- Anti Money Laundering (AML): many private banks have been fined heavily for AML failures. In addition, private banks have to massively increase their client take-on checks and transaction monitoring.
- Anti Bribery and Corruption (ABC): private banks have to identify Politically Exposed Persons and monitor their transactions for money laundering and bribery or corruption.
- Tax evasion: the global trend is to make Private Banks responsible for preventing their clients evading tax.
- Commission driven sales: some relationship managers sell unsuitable and risky high commission products leaving the private bank to compensate clients.
GRC-Maestro can be used as a quick and efficient GRC solution for private banks to meet their legal and regulatory requirements.
With governments around the world demanding access to client’s private data and an ever increasing drive to make private banks pay for tax evasion by their clients the banks face major GRC challenges, including:
- Cross-Border: ensuring that the regulated firm (and Relationship Managers) only conducts business in jurisdictions it is licensed for
- Anti-Money Laundering:
- Know Your Client: being able to definitively prove the client’s identity and/or the beneficial ownership of assets and the source of funds is critical. KYC record keeping is essential and regular risk based updates of information are required.
- Politically Exposed Persons: in addition to standard KYC it is necessary to identify PEPs (including family members) and associated businesses.
- Transaction monitoring: knowing what constitutes a suspicious transaction, flagging it, investigating and, if necessary, reporting to the authorities are required.
- Training: it is required that all staff should receive AML training appropriate to their role and records be kept to evidence the training and who attended it.
GRC-Maestro offers private banks the ability to implement GRC controls to meet the AML requirements in multiple jurisdictions, included risk based enhanced monitoring.