Compliance focus: Finding the needle by standardising the payments haystack
Financial institutions have invested heavily in financial crime compliance systems, processes and personnel. However, the best compliance programmes are only as good as the payments data they have to work with. The increased focus on financial crime prevention has highlighted the fact that data often is insufficient or inaccurate – particularly in terms of originator and beneficiary information in payment and trade messages. Whilst data quality is a high priority from a compliance point of view, proposed solutions, such as ending free-format fields, could have a major operational and cost impact. As with so many compliance-related topics, the challenge is to balance the imperative of meeting one’s regulatory obligations with the need to keep cost and operational impact manageable.