The details matter when it comes to sensitive banking data, especially relating to payments. Regulators are clamping down on banks in response to the threats posed by ever-increasing criminal and terrorist activities and are requiring specific information about not only the sender but also the recipient of a payment; fortunately solutions exist in the form of MT structured message formats.
The global impact of money laundering is staggering; with related transactions estimated at 2 to 5% of global GDP – amounting to up to $2 trillion. The IMF defines money laundering as a process of conducting financial transactions in a manner that obscures the link between funds and their origin.
Many bank managers are grateful that they do not live and work in war-torn countries; but guess what, hardline terrorists are bringing the battle close to home. Within the current world climate, banks, small and large, have a responsibility to participate in the war against domestic terrorism by implementing vigorous anti-money-laundering/counter-terrorist-financing programs.
Global trade growth depends on trade finance, which is not meeting demand. Regulatory compliance, protectionism, costs and complexities of technology have restricted banks’ willingness to provide trade finance. Measures such as collaboration, innovation, improved attitudes are a must if this fuel for the global trade engine is to be adequately supplied.
An entire industry – card payments acquiring and processing – relies its risk management methodology on chargebacks optimization as its main, if not sole, operational target.
For banking and financial institution executives – and for their investors – 2016 has begun on a sour note. From the largest money center banks to small local institutions, double-digit earnings declines were commonplace in the first quarter, as