Summary
What this article covers in 30 seconds
- Investment platforms are strengthening AML controls as scrutiny of financial crime oversight increases.
- Some firms are moving from reliance models to their own verification and screening processes.
- Reliance models still require evidence of monitoring, oversight and accountability.
- Joe Norburn says stronger models share intelligence and oversight across advisers, platforms and technology providers.
Investment platforms are strengthening anti-money laundering (AML) controls as FCA scrutiny of financial crime oversight continues to increase. More firms are moving away from relying solely on advisers for customer due diligence and are undertaking their own verification and screening processes.
SS&C Hubwise has moved from a reliance model to a non-reliance approach, introducing additional identity verification and AML checks for clients. Compliance specialists interviewed by Citywire note that firms using reliance models must be able to demonstrate monitoring, oversight and accountability.
Evidence and shared oversight
For firms operating in an increasingly complex regulatory environment, the focus is not only on conducting the right checks. Firms also need to evidence how financial crime risks are identified, assessed and managed.
As expectations around governance and oversight evolve, clear audit trails and consistent record-keeping remain critical parts of an effective AML framework.
Joe Norburn, CEO at TCC Group, comments: ‘The strongest operating models are likely to be those where advisers, platforms and technology providers each contribute intelligence and oversight, rather than treating financial crime prevention as somebody else’s responsibility.’
Frequently asked questions
It covers how investment platforms are strengthening AML controls as FCA scrutiny of financial crime oversight increases.
It points to SS&C Hubwise moving from a reliance model to a non-reliance approach, with additional identity verification and AML checks.
Firms using reliance models need to demonstrate monitoring, oversight and accountability.
He says stronger models are likely to involve advisers, platforms and technology providers each contributing intelligence and oversight.