International trade finance has been in the spotlight as an avenue for criminal organisations and terrorist financiers to launder money. However, banks are now under intense pressure by regulators to avoid proliferating the financing of such individuals/entities associated with money laundering, terrorist organisations and bribery and corruption. However, with local and global regulations (Monetary Authority of Singapore and the Hong Kong Association of Banks as examples) to adhere to, trade compliance teams are struggling.
Trade compliance teams face the challenge of having to understand and be up to date with all regulatory requirements, and be able to provide audit trails to satisfy any outside regulatory checks.
Performing compliance checks can be a time-consuming process, with banks looking for more efficient ways of documenting why certain decisions are being made, what sources they have used, and also the dates and times of each check, in order to demonstrate how they manage risk.
The need for a solution that not only maintains compliance with regulators, but also lowers internal costs by boosting efficiencies and saving time is more important than ever. One solution containing screening, case management and audit tracking is essential to fulfil these needs.