Understanding the power of AML software to streamline compliance processing for Corporate finance teams

20th July 2020 3802 - Blog Posts

Anti-Money Laundering (AML) is at the heart of the compliance function but financial institutions around the world still struggle with a range of efficiency challenges. In this increasingly challenging environment, corporate finance teams need to think differently about AML compliance, implementing solutions that are rigorous enough to satisfy their regulatory responsibilities but nimble and efficient enough to detect and address evolving criminal methods.

 

 

 

 

 

 

 

 

McKinsey report that over the past ten years, the level of activity in financial-crimes compliance in financial services has expanded significantly, with regulators around the globe taking scores of enforcement actions and levying $36 billion in fines. With figures like these, it is important more than ever that corporate finance teams are charged with governing and overseeing their firms’ financial activities and capital investment decisions, especially where financial monitoring is concerned.

The importance of streamlining compliance reporting

If you assume that corporate finance is a function unconnected to the real operations of a company, you’d be mistaken. Compliance has a big role to play in terms of monitoring corporate finance activity, and AML contributes to this in a big way. The following points summarise the importance of how corporate finance and AML can, and should, work in unison:

  • Corporate finance teams set objectives that improve a company’s valuation and make investors happy.
  • They make strategic growth or restructuring decisions that impact in the mix of geographies, business units, products/services of the company in order to improve the valuation.
  • They raise capital for expansion or restructuring projects and deal with investors.
  • Corporate finance teams take decisions on merging with or acquiring other businesses or negotiating the best price and terms for the company during M&A activity.
  • Equally, they are responsible for avoiding or managing risks for the company.

To support the sheer nature of the activity above, AML outsourced compliance, such as Lawson Conner’s MaxComply software, can help to easily manage surveillance, preventing money laundering and the potential to fund terrorism. In addition, it supports the fifth EU anti-money laundering directive that come into force earlier this year, which includes registering beneficial ownership and taking a risk-based approach to overseeing anti-money laundering compliance. And finally, it covers all global AML regulations, including regional sanctions, CTF requirements and FATCA.

Summary

Achieving compliance with AML regulations requires significant administrative effort and the analysis of large amounts of transaction data. To avoid human error and potential compliance penalties, MaxComply is proven to make better decisions faster, while safely automating onboarding and AML monitoring processes. This not only adds speed, accuracy and efficiency to AML; it also helps corporate finance teams adapt to new regulations and continue to deliver the highest standards of compliance. Get in touch today to see how we could help streamline your anti-money laundering process without compromising on compliance. www.lawsonconner.com.

Author

Andrew Frost, Executive Director