The vast majority of transfers flagged as suspicious by transactional monitoring systems are eventually cleared as false positives, racking up compliance costs for financial institutions and undermining their ability to identify illegal money flows, say sources.
Several dystopian novels describe a future in which homo sapiens become enslaved or extinct because of the rise of robots and computers. Current buzz in the compliance world doesn't include speculation on our extinction, but there is lots of talk about the rise of "regtech."
A handful of financial institutions looking to improve how they manage their compliance risks are venturing beyond conventional transaction-monitoring processes to analyzing the totality of their interactions with clients, according to senior compliance professionals.
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