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Re-watch & re-cap: FraudTech & FinCrime Forum

Joe Roche / 15th July 2021

On the 15th July the Northern FinTech community came together virtually to discuss recent developments in FraudTech and Financial Crime. The FraudTech & FinCrime Forum was supported by AML (anti-money laundering) specialists Tasika and Financial Crime experts Analysis International.

Following the recent move towards digital, in the wake of the pandemic which saw more businesses than ever before move online, the increase in risk has also been unprecedented. FraudTech is an important sub-sector within FinTech, and an area of strength for regional FinTechs.

For those who were unable to join the session live, we have produced a write-up and a recording. Click the image below to view the recording and continue reading for the write-up!

 

Joe Roche, Engagement Manager at FinTech North welcomed attendees on behalf of FinTech North. Joe explained the work FinTech North does in the ecosystem and outlined the objectives and the agenda of the event.

Joe then handed over to Lee Melia, Co-founder of Tasika, to welcome attendees on behalf of our sponsors. Lee then handed over to Grahame White, Head of Training and BD at Analysis International.

Grahame highlighted his background and Financial Crime expertise, including work with Scotland Yard in the aftermath of the 7/7 bombings. Grahame then provided an overview of emerging threats and started by explaining that the intelligence picture is far more aggregated and far less silo’d than it once was.

“It’s not just about sales & licences, it’s about doing things for the benefit of your community” – Grahame White, Head of Training and BD at Analysis International

Grahame highlighted that it’s systems, as well as people, that are flagged by the regulators. Developing systems and developing confidence is key in combating Financial Crime.

Grahame then talked us through anti-money laundering indicators as has seen them in his career and outlined how extremism and terrorism can be combated.

When assessing individuals, Analysis International look for the following:

  • Frequent transfers
  • U-turn transactions
  • Increased use of cash deposits

When assessing businesses, identifiers can include:

  • Structure
  • Documentation
  • Turnover
  • Services
  • Geography
  • Activity

Our next speaker was Lee Melia. Lee outlined how Technology can help in the fight against Financial Crime, not only by increasing efficiency and effectiveness, but also in reducing costs for businesses.

Lee also highlighted how tech can help firms respond to the constant change in threat and regulation, vs manual processes which can produce false positives.

“Technology can tip the balance of the scales of efficiency and effectiveness” – Lee Melia, Co-founder of Tasika

The risk for firms is both reputational and regulatory.

“Real time transaction monitoring is becoming more and more important… you only get a small window to block a transaction, particularly so in today’s world of Open Banking” – Lee Melia, Co-founder of Tasika

To find out more about how Tasika and their AML technology ComplyRadar can help firms identify risk and detect suspicious activity, view the brochure below or contact Lee directly (lee.melia@tasika.co.uk):

View ComplyRadar – FS Brochure

We then opened the event out into a FraudTech and FinCrime showcase chaired by Julian Wells, Director at Whitecap Consulting and FinTech North. Our showcase featured innovative FinTechs and FinTech experts from across the UK. See below for details and timings:

After the showcase we introduced several new speakers to the event, including our guest chair, Sara De La Torre, Head of Financial Services and Insurance at Manchester-based cybersecurity experts NCC Group.

We were also joined by:

  • Paul Jennings, Partner, RSM UK
  • Vicky Brock, CEO, Vistalworks
  • Aravind Narayan, Global Director – Sales Strategy & Execution, Refinitiv
  • Grahame White, Head of Training & Business Development, Analysis International
  • Lee Melia, Co-founder, Tasika

 

Q – What hinders organisations from addressing financial crime?

“Criminals have the technological and the educational advantage…we’ve had to play catch up. Regulators need to think more like criminals” Vicky Brock, CEO, Vistalworks

“There is no regulation in crime… when organisations rush towards digital, things can go wrong. Striking the balance when getting the right customer on board in the right way” Aravind Narayan, Global Director – Sales Strategy & Execution, Refinitiv

“Our regulator is more forward thinking than most… going into the Cloud brings considerations and liabilities” Sara De La Torre, Head of Financial Services and Insurance, NCC Group

“A key problem for firms is that they don’t assess what their operating model needs to be… we’ve seen good efforts in automation, but then there are things like DD and onboarding where there needs to be tighter controls and standards.” Paul Jennings, Partner, RSM

“Legacy system data integration and data that isn’t as clean… the FinTech North community can help educate and deal with tomorrow’s problems today” Lee Melia, Co-founder, Tasika

“There is a lack of desire and a lack of money… compliance/aml doesn’t make money for the organisation” Grahame White, Head of Training & Business Development, Analysis International

 

Q – How can we make things better? Can you share a positive experience or accomplishment?

“I was proud to see how quickly certain fakes (fake PPE, fake tests) were identified at the beginning of the pandemic. People worried about the business models later, it was great to see everyone work together on this”  Vicky Brock, CEO, Vistalworks

“Information sharing is crucial to the fight we’ve been fighting. FinCrime has a human element to it, bringing the different aspects together is happening, albeit slowly.  $3.5 trillion was laundered last year. It’s about collaboration and information sharing.” Aravind Narayan, Global Director – Sales Strategy & Execution, Refinitiv

“The price point is important, you can now do more for less” – Sara De La Torre, Head of Financial Services and Insurance, NCC Group

“We’ve seen firms we work with transform their approach to FinCrime in a short period of time. That is positive, change at the top of the organisation.” Paul Jennings, Partner, RSM

“The fight doesn’t just stop with institutions, individuals have a role to play. Criminals are now targeting individuals (e.g. 10k x £1 scam transactions). Awareness of scams is now much better, partly because of social media.” Lee Melia, Co-founder, Tasika

“1% of money laundered across Europe is confiscated… positives are the people: People at FinTech North, the people I work with. ” Grahame White, Head of Training & Business Development, Analysis International

“The UK in particular has a lot of intellectual capital.” Sara De La Torre, Head of Financial Services and Insurance, NCC Group

 

 

 

 

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