Enterprise-wide approach improves financial crime fighting performance

Research among international financial services organizations undertaken by Norkom Technologies reveals that those who have adopted an enterprise-wide approach to the management of money laundering and fraud are achieving substantial cost savings and performance benefits. 64% of organizations that have consolidated crime fighting operations technologies have achieved cost savings of up to 34%. 68% have improved their crime detection performance by up to 40%.

Norkom’s research reveals increasing levels of crime with 60% of respondents reporting increased fraud attacks in the past 12 months. Norkom believes this, coupled with increasing regulatory scrutiny, is driving financial crime management up the corporate agenda.

More than half (56%) of organizations now view financial crime and compliance as part of an overall operational risk challenge and manage it accordingly under a single governance model. 50% of respondents now have fully articulated three-to-five year strategic plans to develop their financial crime fighting capability and, in 79% of cases, those plans embrace the entire enterprise.

The research also reveals that regulators, previously interested only in AML, are turning their attention to other areas of financial crime. 40% of respondents note increased regulatory interest in their fraud management activities and are using disciplines developed in AML environments, including “Know Your Customer’ and “Customer Due Diligence’ to combat fraud.

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