Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

GLOBAL BANKS FACE FINES OF UP TO £250BN BY 2020

– Fines incurred by banks to date for breaking anti-money laundering rules are “tip of the iceberg”

The multi-million pound fines levied to date against global banks for breaking AML (anti-money laundering) rules and sanctions violations are the tip of the iceberg, according to Data-as-a-Service provider, Anomaly42.

Anomaly42, a specialist in identifying money laundering activity via Big Data analysis, says the use by legislators and regulators globally of technology to scan for financial crime is set to expose countless other banks involved in money laundering activity — and result in fines of up to £250bn by 2020.

Big Data platforms automate the search for money laundering activity and are able to identify all banks involved in criminal transactions, at whatever level. Essentially, as one bank is investigated using Big Data technology, evidence is gained by the authorities on all the other banks implicated in that specific data ecosystem.

Freddie McMahon
Freddie McMahon

In an effort to stem the tide of fines, banks globally are employing armies of compliance officers to counter the rising threat of money laundering, which is estimated at between US$1.44 trillion and US$3.59 trillion annually.However, attempting to do so manually is not just limited in scope but a significant drain on resources. The front office of banks is increasingly losing out to the back office, posing not just a reputational, but a major commercial, threat.

Freddie McMahon, Director of Strategy and Innovation at Anomaly42, commented:
“The gargantuan fines levied against banks to date are merely the tip of the iceberg. Technology today is laying bare complex money-laundering ecosystems in a way that was never possible previously. Once legislators and regulators have dealt with one bank, they are moving onto the other banks embroiled in these ecosystems, even if unknowingly. It’s only a matter of time before more major banks receive sizeable fines.

“The top banks are starting to understand that the rules of the game have changed, that the simplistic money laundering ring is a thing of the past. But the vast majority are still blissfully unaware of the storm that is coming their way. The fines currently being levied against banks are set to be the new norm in global banking, and our research suggests exposure of up to £250bn in the next six years.”