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Banks Find AML "Ineffective", Propose Access to Social Media
The world's biggest banks find monitoring for suspicious activity "ineffective". In a "True Risk-Based Approach", the group now proposes access to customer social media, IP addresses, and device IDs.
According to the statement, "the Group does not believe that the value being derived from the (constantly increasing) volume of [Suspicious Activity Reports/Suspicious Transaction Reports] is contributing proportionately to effective outcomes in the fight against financial crime". While introduced "well over two decades ago", the Group argues that monitoring for suspicious activity has “grown into more [...] expansive risk and control frameworks" that merely increase the number of SAR/STRs filed. The Group notes that the presented body of work is "built on the recognition by the Financial Action Task Force (FATF)[...] that jurisdictions should notfocus solely on technical compliance with laws and regulations but evolve actively towards measuring effectiveness and outcomes".
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