One year on from the introduction of the EU money laundering directive, the use of AML technology is already playing a big part in helping European financial services companies comply with this new legislation, according to CSC.
“It is clear that these institutions are taking their responsibilities seriously as it is estimated that they spent in the region of US$200 million on technology to tackle this crime in 2003 and this spending is forecast to rise by around 30 percent this year,” say market analysts Datamonitor.
Recent fines of three European banks which total Euros 7.2 million and the threat from the Swiss and German Governments that they intend to take breaches of these regulations very seriously, are ensuring that financial institutions do all they can to ensure compliance with this legislation, adds CSC.
“AML technology uses advanced data-mining and analysis to highlight details of suspicious transactions,” says Steve Mitchener, CSC’s President Financial Services EMEA. “Automated cross-checking and risk analysis of customers and transactions is leading to higher protection and more robust compliance. In common with other technology vendors CSC is increasing its offering of customised solution sets to suit each particular customer. When you consider that a large international bank may typically need to comply with the requirements of 80 or more regulatory bodies, as a result of routine transactions, the need for a comprehensive and flexible solution becomes clear.”