Taking a risk-based approach to facilitating international financial flows forms a key part of complying with anti-money laundering (AML) regulation – itself essential to combating financial crime. But is maintaining such an approach becoming too costly and complex for international banks? Richard Jones, CEO of Crown Agents Bank, offers his perspectives to specialist magazine, Payments Compliance.
In the article, “Complex And Costly: Experts Rail Against Risk-Based AML”, Jones notes that “a risk-based approach is not always easy to apply in practice with regard to AML” – with sometimes serious consequences for the inclusion of local banks and remittance providers into the global financial system. As he explains, “International banks find it challenging to establish the right level of checks and balances or to satisfy senior management that they have sufficient oversight of a correspondent bank. It’s often easier to avoid the reputational risk altogether.”
The full article can be read with a subscription here.