By 10th April 2020 No Comments

The financial institutions struggle to fight black money due to the complexity of the threats including detection capabilities to spot new fraud techniques and offshore tax evasion. Threat actors are constantly developing new ways to commit fraud to exploit a wide range of financial services. This makes it very challenging to tackle suspicious transactions and monitor data at the speed of business, and to quickly analyse the impact that frauds can cause. Banks and their customers face the risk of losing money, ruining reputations, struggling to maintain organizational efficiencies and protecting integrity. Money laundering is indeed a global problem that poses serious risks to the financial sector of every economy. While recent policies are promising solutions, they are unfortunately almost useless because their implementation fails to be on a world-wide basis. The lack of consistency is definitively an unfortunate feature of current policies. Professional launderers know that very well and are indeed constantly switching the site of their illicit money activities to more favourable legal climates. The risks posed to the financial sector cannot be then completely eliminated.

Banks risk a lot from money launderers on many fronts. There is actually a very small step between a financial institution suspecting to be used by fraudsters and the institution becoming criminally involved with the activity. Banks that are discovered to be laundering money are most certain to face costs associated with the subsequent loss of business as well as legal costs. Banks also face the risk of criminal prosecution for money laundering whether they know the funds are criminally derived or not. The very recent Danske Bank money laundering scandal or Swedbank laundering case are good examples of weaknesses in anti-money strategies.

In Lys Trade, we take this matter very seriously. This year, we have updated our services to perform market evaluations, and gap analyses to assist clients in reducing their money-laundering and sanctions exposure, implementing operational solutions, and enhancing their overall risk management.Our independent approach is not only what differentiates us, but also what makes us successful to help firms to comply with Bank Secrecy Act and its implementing regulations. A key pillar of an AML compliance program is the transaction monitoring framework aiming to detect suspicious activity.We also believe that Automated Machine Learning is the state-of-the-art approach by which Artificial Intelligence (AI) is used for making detections and predictions.We use our understanding of requirements to select a set of proprietary AML automated tools and solutions that can help our clients to sort the “legitimate” transactions from the “bad”. Our focus is on platforms utilising Artificial Intelligence, Machine Learning and Blockchain technologies in addition to the more traditional filtering tools. The ideal solution sits across Compliance, Business and Technology.

Just reach LYS TRADE (info@lystrade.co.uk)to set up an appointment with our representatives in Luxembourg or in London. As a Lys Trade client, you will beneficiate from the joint expertise of business specialists and consultants. Together we will be able to identify the best regulatory compliance software solution in the market to tackle dirty money.

Philippe Johan Castelain, Managing Director@Lys Trade Ltd