Finance

Combating money laundering is no longer a choice but a must for banks. But the effort that must go into fighting it is daunting. How can technology, especially artificial intelligence and machine learning, battle the costs and drains on monetary and human resources required for AML compliance, making the whole process a lot easier and more effective? Can AI be trusted to do the job right?

All over the world, regulations have been implemented to protect economies, especially following the major recession 10 years ago. But unfortunately they have not always been executed in concert, leading to costly regulatory fragmentation. Banks have been particularly hard hit by the costs of compliance to misaligned regulation, with resources being drained away from more productive areas. But there are ways to mend these divergences, starting with cooperation between regulators.

Global growth is strong, but policymakers need to navigate uncharted waters and enact complex policy changes to keep the world economy on an even keel. The main risk lies not in economic conditions, but in economic policy debates too often distorted by partisanship. We have a chance to leverage new technologies to lift living standards on a sustainable basis—but we need a more level-headed discussion to chart the path forward.

Banks are spending $20 billion on compliance in an effort to combat money laundering, yet only one per cent of illicit financial flows are seized by authorities every year. While regulations have been introduced to crack-down on money laundering, so far they have had a limited effect.

Abu Dhabi, capital of the UAE, is rich in oil but suffers from underuse of its own human resources. Abu Dhabi’s commitment to rebalancing away from oil will be underpinned by improvements in financial education, exemplified by a new academy launched by Abu Dhabi Global Market in partnership with the London Institute of Banking & Finance.

U.S. banks are highly profitable and supporting of economic activity, as they were prior to the 2008-09 financial crisis. It is important to remember how quickly conditions can change. As a result of post-crisis prudential reforms, banks have bolstered their capital and liquidity. It is essential to preserve these hard-won improvements. It would be a mistake to assume that a severe downturn or crisis cannot happen again.

Imagine you’re one of the nearly 40 million Tanzanians who live in a rural community. It would most likely take a day of your time and a considerable portion of your earnings just to travel to the nearest brick-and-mortar financial institution.

In the United Kingdom under new government regulation, businesses must report their gender pay gaps. The factors contributing to these gaps are varied, but as Jayne-Anne Gadhia, the government’s Women in Finance Champion, explains, closing them is a must to tap into the full potential of all employees regardless of gender, for the benefit of not only the workers and their firms but society at large.

Organizations are developing creative strategies to better deal with threats against the balance sheet. Alternative risk solutions, such as captives, are gaining relevance as firms search for cost efficient methods to adequately cover exposures, both traditional and unique.

Corporate governance is moving from back to front stage. Change starts at the top, and a good board of directors is credited with strengthening value creation and stability. What makes a good board? Members should represent their company’s diverse stakeholders and be skilled in a variety of areas that were historically considered the domain of management. For too long, too many boards have fallen short and a reboot is required!