Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

15081

Rise of big data to put UK financial services firms in regulatory firing line

RELATED TOPICS​

The exponential growth of Big Data will trigger a sharp rise in UK financial services firms being investigated, and potentially fined, by regulators, according to Data-as-a-Service provider Anomaly42.

The warning follows a string of high-profile cases of international banks facing multi-million pound fines for breaking AML (anti-money laundering) rules and sanctions violations.
 
Soon, however, this heightened level of forensic investigation by legislators and regulators globally is set to cascade down through the financial services sector as a whole — and affect even the smallest firms.
 
Big Data platforms are increasingly being used by regulators to automate the process of scanning vast data ecosystems for financial crime.
 
As a result, they are helping them to expose fraudulent and other illegal activities — and the companies that are embroiled in them, even if unknowingly — far more quickly.
 
While the fines faced by smaller financial services firms won’t be anywhere near as large as those faced by the major international banks, the reputational damage done to them, in relative terms, could be profound.
 
Freddie McMahon, director, strategy & innovation, Anomaly42, says: “For UK financial services firms of all sizes, the rising intelligence and falling cost of Big Data analysis is proving a double-edged sword. On the one hand, Big Data platforms are being used in-house to uncover new market intelligence and customer insights. On the other hand, they are increasingly being used by financial regulators and legislators to expose financial crime and any firms mixed up in it, even unwittingly.
 
“Moving forward, compliance departments are going to have to be even more forensic in their KYC processes. To properly defend their firms' reputations and bottom lines in a newly transparent market, one-off, or infrequent, KYC will rarely be enough. A new form of KYC that is embedded and ongoing will have to become the modus operandi, or firms will suffer the consequences.”

Latest News

Bequant has announced that it has launched a new capital introduction platform designed specifically for..
ndosuez Wealth Management has announced the launch of Indosuez Funds - Chronos Green Bonds 2028,..
New global research from industry association Global Digital Finance (GDF) shows most major financial institutions..

Related Articles

graph
The exodus from hedge funds continues with investors questioning unswayed by relatively strong performance from the alternative asset class...
The exodus from hedge funds continues with investors questioning unswayed by relatively strong performance from the alternative asset class...
Waves
A joint statement from BNP Paribas Asset Management, Federated Hermes Limited, Mirova, Robeco and Storebrand Asset Management has been published, entitled The urgent need for better ocean-related data to make informed investment decisions...
A joint statement from BNP Paribas Asset Management, Federated Hermes Limited, Mirova, Robeco and Storebrand Asset Management has been published,..
Frozen soap bubble
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct Authority says has a simple aim: “Financial products that are marketed as sustainable should do as they claim and have the evidence to back it up.”..
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct..
Global ESG Investing
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of climate change and ESG factors in state policymaking...
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by