Along with the already awesome range of regulations with which financial services institutions must comply, a further European Directive on Money Laundering (AML4) must be implemented by the 26th June this year.
The Directive makes key changes to many existing anti-money laundering regulations. For example, it provides for significant modifications to current rules around customer due diligence and adjusts existing provisions relating to the maintenance of a central register of beneficial ownership. There is also a renewed emphasis on risk assessments. While the UK Treasury consultation on transposition of the Directive is now closed, more information can be found here: https://www.gov.uk/government/consultations/transposition-of-the-fourth-money-laundering-directive.
In order fully to comply with the new regulations, firms will need to ensure that their office practices are updated and this will necessarily entail technological applications being refreshed. To help financial advisers manage the changes mandated by AML4, Encompass Corporation has announced the launch of a new product, Encompass Confirm. Designed specifically to automate the process of changing over back office anti-money laundering procedures so that they are compliant with the latest requirements, the software will be a boon to advisers who struggle with the burden of an increasingly complex and onerous regulatory climate.
Discussing his company’s exciting new launch, Wayne Johnson, CEO of Encompass Corporation, said that trials of the software had indicated that it is actually more than 10 times faster on average than the various systems which are currently available and, crucially, it has been estimated to slash manual costs by as much as an eye-catching 80 per cent.
Back Office Systems for Financial Advisers
Software solutions can, of course, transform the way advisers manage other compliance requirements and general back office processes. These tasks have traditionally presented a major obstacle to an adviser’s efficiency and profitability, because they are labour intensive and take up valuable time that could be deployed on more lucrative activities. Technology such as that provided by https://www.intelliflo.com/ can help streamline your back office procedures, minimise the time you need to spend on non-fee earning work and equip you to deal cost-effectively and efficiently with office administration.
Further financial services and banking regulations will inevitably follow AML4, and the best way for the finance sector to absorb the changes is to invest in the latest generation of back office technology.