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Reuters: Australia’s Royal Commission Provides Impetus for Local Banks to Evaluate Financial Crime Compliance Programmes

In the aftermath of Australia’s Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, or the ‘Hayne Royal Commission’, leading local banks are reviewing their financial crime compliance (FCC) programmes. This is particularly the case in response to some of the commission’s findings, which exposed inadequacies both in broader governance and conduct, along with specific aspects of their FCC programmes.

In this context, Joseph Quiazon, Managing Director and APAC Head of Financial Crime Compliance at Exiger spoke to Regulatory Intelligence at Reuters to explain the drivers behind these compliance reviews, and the different approaches by regulators in Asia Pacific – including the use of technology to power automated due diligence and monitoring.

On the findings of the commission, Joseph added: “Even though the Royal Commission was focused on conduct issues, there were some blatant fraudulent practices. Some key areas such as KYC, enhanced due diligence and governance appeared to show that firms’ practices at times lacked the culture or the appropriate tone from the top”.

To address these deficiencies, Joseph noted that some regulators in APAC are further ahead, in particular, HKMA and MAS, who expect the banks they supervise to adopt artificial intelligence-powered technology to aid the conduct of enhanced due diligence by monitoring high risk clients for adverse media.

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