I just finished reading Chris Swecker’s white paper Bank Secrecy Act 2.0. Chris is a financial crimes consultant and was the former Assistant Director of the FBI’s Criminal Investigative Division and former Corporate Security Director for Bank of America.
In his paper, Chris asserts that as FinCEN devotes more time to become the nations Financial Intelligence Unit (FIU) they will continue to turn more and more to big data and analytics in their duties. He believes that FinCEN will uncover more linkages between crimes, money laundering and terrorist financing. Chris says “there are very few scenarios where terror financing will take place without engaging in some type of supporting criminal action". As more of these linkages are discovered there will be increasing pressure for banks and other financial institutions to tear down the traditional barriers between risk and fraud based groups and processes that are often siloed within organizations.
He warns that basic compliance will no longer suffice and financial institutions need to prepare for the eventuality that the financial regulators will constantly raise the bar for requirements of integrated and more holistic views of activities in their organizations.
Click this link to get the Verafin sponsored white paper http://bit.ly/VqCeIQ
Some organizations are well on the way to having an integrated Financial Intelligence Unit. Earlier I blogged about the opportunity for a middle ground (see early blogpost - http://bit.ly/ShOEXH.) Whether you reorganize, integrate or just plan for increased cooperation and a common platforms for data sharing, it’s time for financial institutions to prepare to tear down some walls – many of which have been built up over many years.
Verafin sponsored this paper, and I am doing a lot of work with them these days, and I just wanted to be open about that.