The Association for Financial Markets in Europe (AFME) has published a paper entitled, “Anti-Money Laundering Transaction Monitoring in the Markets sector” in collaboration with Ernst & Young.
Recognising the key challenge that the industry faces in identifying money laundering activities and the recent high profile cases in the capital markets space, the paper:
- considers the effectiveness of the the current AML transaction monitoring (ALM TM) control framework and approaches in the capital markets sector;
- identifies how existing AML TM systems can be enhanced and the evolving skillset that is needed to support it;
- provides a road map to support firms in designing and operating the most effective solution;
- considers the use of data, technology, and enhanced analytics to further drive improvements, building stronger more efficient solutions and leveraging opportunities for intelligence-led investigations;
- reviews the processes around the submission of Suspicious Activity Reports (SARs);
- explores the advantages to the sector as a whole in establishing greater collaboration between private and public sector bodies; and
- considers the benefits of convergence, between market abuse surveillance function and the AML TM function.