Arctic Intelligence | June News

CEO Message

Last month our team has been flat out (again) on several fronts building new features, developing new content modules, and engaging with our clients and prospective ones in demos and complex POCs. This is exciting as we get to showcase how we’ve been deeply thinking about enterprise-wide risk assessment challenges and aligning our platforms to overcome these. These engagements always give rise to new ideas that fuel our platform roadmap.

We’re engaged in speaking with many banks, consultants, and regulators on many continents and from these conversations a few things are crystal clear:

1. The level of maturity in #EWRA thinking, and tools is generally very low with over-reliance on Excel spreadsheets and an underinvestment in #RegTech solutions in this space.
2. Regulators are increasingly finding fault with how regulated businesses identify, assess, mitigate, and manage financial crime risk at an enterprise level. However, they often do not go far enough in clearly spelling out their expectations (more Dear CEO style letters are required!). It has never made sense to me why a multi-billion dollar/pound/euro revenue bank, with 10-50 business lines and/or products, operating across multiple countries can satisfy itself by ticking boxes in Excel once a year (at best). This seems far too simplistic an approach in proportion to the nature, size, complexity, and risk profiles of these organisations.
3. The level of interest in #EWRA technology is increasing among major banks who genuinely express a desire to move beyond Excel, first by “digitising” within a purpose-built platform and then “automating” through data-driven API-led fees is increasing. Despite this, the level of maturity remains generally low and there is a transformative journey organisations need to go on and only a small percentage are actually taking the leap.

This month we’ve developed a value proposition aimed at FIUs / AML Regulators as a way of making them aware how they could?utilise our technology to uplift the #EWRA processes across their entire universe of regulated entities providing real-time insights into the effectiveness of risk assessments across whole industries.

This came about due to a proposal we’ve submitted with one of our partners to a forward-thinking FIU pitching this idea. If?you work in a regulator and are reading this check this out. If interested,?please get in touch!

Read here.

Industry Updates

> European Union

Our focus is back in Europe following the adoption of the “package” of new anti-money laundering rules by the European Council which is designed to protect EU citizens and the EU's financial system against money laundering and the financing of terrorism.

This new agreement sets out to achieve new regulatory and operational activities designed to harmonise AML/CTF laws across all European Countries under a newly formed EU supervisory body based in Frankfurt known as the “AMLA”.

This will have far-reaching implications on FIUs and regulated businesses operating across the 27 EU member countries including (but not limited to):

• FIUs will need to operate on common standards and harmonise cooperation and information sharing across member states through single common portals.
• The AMLA will have direct and indirect supervisory powers over high-risk obliged entities in the financial sector.
• There will be a harmonisation of laws and industry sectors that must comply with AML laws as well as expanding these laws to new sectors such as the crypto-sector, traders of luxury goods and football clubs and agents.
• The AMLA has been granted powers to?impose pecuniary sanctions?on regulated entities from a more holistic European rather than country-by-country perspective, reducing the opportunity for compliance arbitrage.
• This will close other loopholes and lead to a common approach to combatting financial crime across Europe through standardised laws, guidance, coverage by industries, common reporting requirements and consistency in imposing fines and penalties for non-compliance.

Now that the “AML Package” was adopted late last month, the European Banking Authority (EBA) will continue in its role as the key agency policing money laundering before and by 31 Dec 2025, will have fully transferred its powers and resources under the new “AMLA” body.

In our view, this is a positive move that will drive common standards and outcomes for FIUs and regulated entities in the fight against financial crime in Europe.

For more information?click here.

Company Announcements

> New Content

This month we've also launched?AML Accelerate?into three new markets. This time in the Caribbean with?Jamaica,?Trinidad and Tobago, and the?Bahamas.?

> Coming Soon

Our team is busy working on a couple of new features within our?Risk Assessment Platform, that we're calling "Synched Controls" and "Control Based Questions" that will be released over the coming months so watch this space as we share more about these.

> New Partners

BitCompli provides expert regulatory and compliance support within the crypto and digital asset sectors. With our expertise, we've successfully streamlined and supported regulatory registrations for diverse cryptoasset institutions in key regions like the UK, EU, EEA, UAE and more.

Visit the website

> New Clients

The International Payments Platform Simplifying Your World.

Entre Biz is a digital platform where you can experience a simpler way of transferring your funds. You can open a zero-balance account online, in multiple currencies, with minimal fees and transfer funds in real-time globally,

Visit the website

New Resources

> Overview

Overcoming the three most common challenges developing AML/CTF program overview

An AML/CTF Program effectively outlines your business’s strategic approach to designing, implementing, and maintaining mitigating controls tailored to address money laundering and terrorism financing risk exposures. But setting it up poses three distinct challenges. We have unpacked these for you in this overview.

Access the Overview

> Blog

Compliance as a strategic investment

Is your financial institution overlooking its greatest asset? In today's competitive market, many companies undervalue the role of compliance.

Financial services companies—whether banks, traditional MSBs, or innovative FinTechs—often become blinded by competition, enamoured with rapid growth, market size, and the allure of capturing market share and growing revenue. The financial technology sector is celebrated for its ability to innovate swiftly, disrupt markets, and adapt to consumer demands. However, this excitement and investor validation can overshadow a critical truth: market size and growth speed mean little if a financial institution fails to operate compliantly and manage its risks effectively.

Read the article

Events

> Upcoming Webinars

AML Accelerate

Enterprise-wide money laundering risk assessment tailored to 30 industry sectors and 60+ countries.

Designed for smaller and medium-sized businesses who want to be guided through a comprehensive ML/TF risk assessment process, and document their AML/CTF Program and keep track of action plans easily!

Register for AML Accelerate Platform demo

Risk Assessment Platform

Fully configurable financial crime risk assessment platform designed for complex enterprises.

Designed for larger businesses that want to fully configure the risk assessment - build risk methodologies, bespoke risk modules, import control libraries, apply weightings, real-time dashboard reports and much more!

Register for Risk Assessment Platform demo

> Past Events

Finnies Awards - Sydney - June 2024

In June we went to Doltone House for the Finnies Awards event.?Now in its eighth year, the annual Finnies Awards is the most recognised awards that celebrates the success of the Australian fintech industry.

The Finnies help surface the achievements of modest founders with unsung innovation in our sector.

Have a great day. If you have any queries regarding any of Arctic Intelligence's award-winning products and how they can help your business, please get in touch.?We look forward to discussing your financial crime risk assessment soon.

Regards,?

Anthony Quinn and the team at Arctic Intelligence

Founder / CEO