Chartis Research: The Value of Localization in Fighting Financial Crime.

01.03.24

As the risk of economic crime constantly looms over the financial landscape and the pace of financial activity gets faster and faster – think of onboarding operations, authorizing loans, providing banking services – the role of proper due diligence processes appears to be as pivotal as ever. Risk exposure, in fact, proves to be strictly linked to the adoption of robust and thorough diligence infrastructures.

Chartis Research, the leading provider of research and analysis on the global market for risk technology, recently published an insight focusing on one of the core elements of due diligence: local knowledge.

Among the substantial benefits stemming from the adoption of in-depth measures – Chartis Research highlights –  stand out clarity, efficiency and optimized risk-management. Understanding local contexts, in fact, is paramount for institutions and regulated organizations aiming to assess the risks associated with their clientele in specific markets. As an example, global banks willing to successfully expand into new regions should have a firm grasp of local laws, regulations, and risk profiles. Without this localized focus, firms easily face threat of misunderstanding or overlooking potential risks, leading to repercussions, backlash or investigations. Thus, unawareness of latent client risks (PEPs, Local Politicians, Adverse Media, Sanctions) can considerably expose organizations to exploitation, money laundering or fraud. Access to regional or country-specific risk information enhances efficiency, streamlining case processing and minimizing customer inquiries for a smoother, neat workflow.

The present report represents a valuable insight to fully understand the ramifications of consolidated due diligence tools like Daily Control™, a comprehensive screening solution trusted by hundreds of financial intermediaries and other obliged entities and subjects in the execution of their daily AML (Anti-Money Laundering), CFT (Combating the Financing of Terrorism) and KYC (Know Your Client) monitoring processes.

 

Who is Chartis Research?

Chartis Research provides comprehensive analyses of technological solutions aimed at managing various risks faced by companies, ranging from credit and operational risk to market and reputational ones. In particular, significant attention is paid to new technologies applied to the prevention of financial crime and cyber risk management.

The reports and quadrants developed by Chartis Research result from a professional and independent study of regulatory trends, market dynamics and the global landscape of industry players. The research follows a rigorous process that includes a detailed analysis of the operators and their cutting-edge solutions, with direct interviews to both the company and service users, ultimately leading to an objective evaluation based on specific and determined criteria.

 

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