Experts share advice to implement watertight AML systems听after learning from the NatWest case.
Consumer Trust in Online Banking
NatWest鈥檚 landmark money-laundering case has dealt a huge blow to consumer trust in听online听banking; an industry that more than three quarters听(76%)听of听UK听consumers听already听admit听they don鈥檛 fully听trust,听according to research from听anti-money laundering specialists, SmartSearch.
The ongoing lawsuit being faced by听the听high street bank has put others听on high alert听to the threats and scale of money laundering in the UK, but experts warn this case is the tip of the iceberg when it comes to financial crime in the UK.听
So, what can businesses learn from NatWest to avoid the same听costly听pitfalls? John Dobson, CEO at听SmartSearch, shares his expert insight:听
Customer trust听is shaken
Among the high street banks there really are no two ways about it, your customers听must听trust that their money is safe with you.听Never听has this been more prevalent either,听with the pandemic听forcing many into online banking after听the closure of more than 200 branches around the country last year.
With听NatWest now听facing听criminal prosecution听after听the Financial Conduct Authority (FCA)听accused them of failing to appropriately scrutinise numerous听suspicious cash payments, this scandal has not only damaged the听bank鈥檚听reputation but听has also impacted consumer trust听across the听industry.听
We know from our research that trust is paramount, so it鈥檚 more important听now听than ever that businesses do everything possible to instil trust among their customer base.
Better electronic identity verification
This isn鈥檛听the first time听we’ve听seen a case of this scale in recent years.听Australia鈥檚 Commonwealth Bank fell into similar difficulties in 2018 and ended up paying 拢400 million in fines as a result of failing to adhere to the strict AML regulations.听
Even in pre-pandemic times, AML procedures and regulations would frequently change and update to ensure they were as robust as possible, which unfortunately makes way for human error. Over the past year,听the听use of electronic verification听has accelerated,听as has听the need听for听more rigorous听online听security checks.
Developing the right procedure before implementing it is key. By adopting a watertight, multi-layered听identity check process, you will eliminate听the听chances of fraud听and听ensure听any suspicious activity听is flagged.
Combine the right technology with robust training听
Utilising this kind of system听whilst ensuring all staff are kept up to speed on AML law and听policy听will go a long way to preventing any听shortfalls in the process, which will听ultimately听safeguard against failings.听
At听SmartSearch听we have developed an innovative听TripleCheck听system, requiring all customers to complete a three stage ID check,听including听documentation checks,听facial recognition and digital fraud and data referencing checks.听
This approach makes听it easy for businesses to听identify and eliminate听fraudulent activity, helping听them听to听stay AML compliant听at all times听to avoid sanctions.
