The Russian invasion of Ukraine has had a significant impact on AML (Anti-Money Laundering) controls in financial companies, particularly in Europe. The invasion and subsequent sanctions have resulted in increased regulatory scrutiny and a heightened focus on AML compliance. These sanctions have increased the need for financial companies to implement robust AML controls to ensure compliance with regulations. Even though traditionally the AML risk has been considered lower in insurance companies compared to the banks because of lower volume of transactions, the changes in operating environment have had significant impact on the insurance companies as well. The criminals have become even more creative and sophisticated in their actions. Knowing the Customer has become increasingly crucial part of effective AML risk management framework.
Insurance companies are required by law to comply with regulations related to KYC, Anti-Money Laundering (AML), and Countering the Financing of Terrorism (CFT). These regulations aim to prevent financial crimes such as money laundering, fraud, and terrorist financing. By implementing advanced KYC controls, insurance companies can ensure that they are complying with these regulations. Advanced KYC controls have several benefits for the companies:
Efficient and advanced customer risk rating methodology in insurance companies involves a systematic approach to identifying and assessing the risks associated with customers.
Knowing Your Customer in big financial institutions may be tricky if the volume of customers is huge and client interactions happen mostly online. The key in supporting this process is efficient customer risk rating methodology which involves the use of a combination of qualitative and quantitative factors to assess the risk of potential and existing customers. The goal of this methodology is to identify high-risk customers and apply appropriate risk management measures to mitigate potential criminal activity and financial losses. Key components of an efficient customer risk rating methodology in insurance companies include:
Overall, an efficient and advanced customer risk rating methodology in insurance companies involves a systematic approach to identifying and assessing the risks associated with customers. By using a combination of qualitative and quantitative factors, insurance companies can identify high-risk customers and apply appropriate risk management measures to protect their clients and business and to prevent financial losses.
Jenny Lehto on vakuutustoimialavetäjä Suomen riskineuvontapalveluissa ja osa Digital Operational Resilience Act -sääntelyyn perehtynyttä pohjoismaista tiimiä Deloittella. Hän on tehnyt vakuutustoimialalla ja -alan kanssa vuosikymmenen verran töitä ja kerryttänyt syväosaamista vakuutusliiketoiminnasta, sääntelystä ja olennaisista teknologioista. Ennen Deloittelle siirtymistä, Jenny oli liikkeenjohdonkonsultti vakuutuspraktiikassa ja keskittyi liiketoiminnan ja teknologian transformaatioihin. Nykyisessä roolissaan, Jenny on vastuussa tulevan sääntelyn, kuten DORA:n, kääntämisestä toimialakohtaisiksi vaatimuksiksi ja vaikutuksiksi. Briefly in English: Jenny Lehto is the Insurance Sector Lead in Risk Advisory Finland and part of the Digital Operational Resilience Act Nordic working group. She has worked in and with the insurance industry for the last decade gaining experience and in-depth understanding from the insurance business, regulation and relevant technology. Previously, she worked as a management consulting practitioner in an insurance practice, and at the time her focus was business and technology transformations. In her current role, Jenny is responsible for translating the upcoming regulation, including DORA, to financial services industry specific requirements and impacts.
Aleksandra toimii asiantuntijana Deloitten Finlandin Regulatory Risk -tiimissä ja hän työskentelee erityisesti finanssialan toimijoiden kanssa. Aleksandralla on laaja tietämys ja kokemus finanssialan regulaatiosta, kuten sijoittajansuojasta, sekä rahanpesun ja terrorismin rahoittamisen estämisestä. Briefly in english: Aleksandra is an assistant manager in the Deloitte Finland's Regulatory Risk team and works with financial institutions. She has broad knowledge and experience in financial regulation advisory in matters such as investor protection, and Anti- Financial Crime.