Banking Risk and Regulation’s Post

https://lnkd.in/eAxMvpPh The FCA has been slated in a recent APPG report - calling it "incompetent", that it "acts in bad faith", it has a "defective organisational culture" and that its "transparency and accountability is lacking". Strongly worded criticisms of the regulator for sure, but are they fair? The report slates the FCA for its perceived failings and shortcomings in achieving its objectives and that it is a "captured" regulator, meaning that it is too close to large financial institutions and reluctant to act against them. I find it tricky to agree with this view on capture (read my previous posts on large bank fines!) but the comments in the report in relation to treating whistleblowers badly and notable bungling of various investigations give justified cause for concern. I imagine there will be much discourse arising from this report. The APPG report places emphasis on the "most compelling evidence" it received from current and former FCA employees. As a former employee myself, I do not agree with a good chunk of this report - which reads as a bit of a dogpile - but note with caution the many fair and pointed findings it makes.

Grady Booch, the inventor of the Unified Modelling Language used in software systems design, is also well known in wider circles for his quote “A fool with a tool is still a fool.” If we strip away the camouflage of the statistics quoted in this blog piece it is really a promotion for monitoring WhatsApp messages and other “chat” platforms based on the fines levied by regulators in recent years. Regulators only rarely cite particular vendor platforms or data formats and protocols which is where companies like SteelEye target their offerings. The Steeleye platform is a well-recognised piece of technology ,but it does not make any prospective purchaser instantly compliant. Compliance lies in the sustained activities of design, configuration, deployment and continuous operational rigour which must govern many forms of technology and human factors too. We need better tools to document and measure the effectiveness of these core activities as well as keeping pace with the never-ending technology arms race in financial services. https://lnkd.in/ekVS52vV #compliance #regulations

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Have regulated financial institutions in the UK taken Digital Communications Governance & Archiving seriously enough? Are communications with clients over WhatsApp, SMS, iMessage, Telegram, and the like being properly captured, archived, and surveilled? Our research says the answer is mostly no. But it looks like we will find out soon enough. And if can learn anything from the major SEC/CFTC crackdown across the pond, the investigation will yield massive settlements/fines, followed by a whole wave of self-reported non-compliance, and an accelerated effort to adopt better norms, more efficient internal enforcement, and a mad dash to close the gap with the best tech solutions for DCGA. https://lnkd.in/e5M8D5Dt

AI-powered tools are helping banks monitor suspicious transactions in real-time, improving compliance and reducing the risk of financial crimes. #AI #TransactionMonitoring #AML #DigitalBanking #Compliance

🚨 Did you know? 🚨 Fines for non-compliance in fintech can reach up to €20 million or 4% of global turnover (whichever is higher)! 😱 This highlights the massive financial risks businesses face when they fail to meet regulatory standards. Don't let your business be at risk! Stay compliant and safeguard your future. (Source: GDPR, EU regulations) #Fintech #Compliance #Regulations #BusinessRisks #FinancialSafety

🔒 Protect Your Money & Data: What You Need to Know NOW 🔒 If you're using digital platforms for trading, finance management, or borrowing, you need to know about these game-changing laws. 🚨 1️⃣ Cracking Down on Unregulated Digital Lending What’s changing? A new law aims to tackle illegal lending by imposing heavy fines and prison terms for unregulated lenders. Why it matters to you? Protects you from predatory practices—like unfair interest rates and harassment. •Actionable Tip: Before borrowing from any platform, check if they’re regulated. Look for certifications from the RBI or other financial authorities. 2️⃣ Your Data, Your Control New rules give you greater control over your data. Companies must now allow you to delete or limit how they use your info. What’s in it for you? Your financial apps must notify you if your data is breached. •Actionable Tip: If you suspect a data breach, immediately request the platform to delete your information and notify you about any misuse. --- Why It’s Time to Pay Attention? These updates are more than just legal jargon—they’re about your money and your privacy in an increasingly digital world. The rules are changing. Are you? 🔐💡 #Fintech #PersonalFinance #DigitalLending #DataProtection #FinancialSecurity #SmartInvesting

The role of gatekeeper in combating financial crime is crucial for banks to maintain regulatory compliance, uphold public trust, and safeguard the integrity of the financial system. Failure to fulfil this role can have severe consequences, both financially and reputational, for banks (e.g. fines totalling over 1 billion EUR in the Netherlands over the past […] https://lnkd.in/dqYh-sWD www.Cyprus-CEO.com #CEO #business #management #marketing #tech #AI #legal #money

Starling Bank has been making business fly too freely as it gets fined £29 million by the Financial Conduct Authority (FCA) for serious lapses in financial crime controls! I am 100% confident AI can help banks like this in AML screening... David Sproul let me know if you want to chat about it?! The bank's anti-money laundering (AML) and sanctions screening systems failed to keep up with its rapid growth, expanding from 43,000 to 3.6 million customers between 2017 and 2023. Despite being restricted by the FCA from opening high-risk accounts, Starling allowed 54,000 high-risk customers to open accounts between 2021 and 2022. 🔍 Key Points: 1. Starling failed to comply with AML and sanctions requirements. 2. The bank's financial crime controls were inadequate given its rapid growth. 3. This fine serves as a warning to all financial institutions to strengthen their compliance frameworks. #StarlingBank #FinancialCrime #FCA ----------------------------------------------- I'm Sam the founder of OpenFi we build the UK’s top Whatsapp AI Sales Agents, that maximise business from your website.