Enhance your risk-based approach to supervision and regulatory effectiveness
Use data-driven analysis to support supervisory and regulatory decision-making. Determine and update risk factors for different market segments.
Plan on-site and off-site inspections based on risk. Track and assess remedial action by monitored entities.
Public authorities will soon be able to use the EFI platform to automate and support core processes of the risk-based approach to supervision
The results and analysis generated by the EFI can also be used by supervisory authorities and financial sector bodies to assess AML/CFT risks on an ongoing basis.
We are engaging with the national banking association of a key financial hub to support their preparations for an upcoming assessment by the FATF, the global AML/CFT standard-setter. Given that the EFI can be rapidly deployed to provide a granular analysis of sector-wide risk, they will be able to better show the structures and systems in place to monitor and address risks on an ongoing basis.
The banking association will be able to generate a thorough analysis and overview of risk exposures, controls and governance structures in place among its members and across the sector, and remediation strategies to mitigate residual risk.
The banking association and its members will be well-placed to evidence their current status and progress made towards external stakeholders such as the FATF.
Of the more than 100 jurisdictions most recently assessed by the global anti-money laundering regulator FATF and its regional bodies, none has been assessed as being "highly effective" when it comes to supervision of their key financial and non-financial sectors. Over 90% of countries have been assessed as having low or moderate effectiveness.
Manual analysis done periodically
Use of data restricted by limited access and transparency
Limited access to data analytics resources to understand the risk landscape and perform risk-based supervision
Inspections performed periodically leaving space of infrigements to go unnoticed
Carry out and update sector-wide risk analyses to drive supervisory processes, including analysis of cross-border risks
Take a data-driven approach to determining and weighting risk factors in enforcement and supervisory decisions
Use advanced data analytics to plan and prioritize off-site and on-site visits
Establish and monitor triggers to generate ad-hoc inspections