Tackling money laundering: Insights from the AML days in Sweden

Tietoevry Banking were represented with a team of experts to engage in these crucial discussions, and we had the opportunity to network and showcase our innovative solutions aimed at fighting financial crimes and money laundering.

It's not only about compliance, but preventing crime and terrorism

One of the key takeaways from the event is that combating money laundering transcends ordinary regulatory compliance. It is about preventing serious crimes that manifest in severe forms such as narcotics, trafficking, shootings and bombings, or even terrorism, which are often funded through illegal means and fraudulent schemes. We are also facing criminals that have become more sophisticated, and have professionalized crime into a service, offering advanced skills to effectively handle and wash the proceeds from these criminal activities.

The changing landscape of financial crimes – a local and global challenge

The discussions highlighted how financial crimes have evolved, with criminals embedding themselves within the financial systems and corporate environments. The transition from trust-based to control-based processes, laws, and guidelines is essential to prevent these systems from being exploited. Money laundering is not just a local issue but a global, cross-border challenge that affects all sectors differently. For instance, in the financial sector and as stated by the Swedish FSA Finansinspektionen, significant laundering activities involve cryptocurrencies and neo-banks.

While regulatory requirements remain consistent across all actors, the risks are particularly pronounced for small and medium-sized banks. In this context, our services at Tietoevry Banking provide an opportunity for these banks to battle this and achieve compliance effectively, offering robust anti-money laundering solutions without requiring the extensive in-house resources typically found in larger banks.

Globally, money laundering is estimated to account for about 2.5% of the global GDP. In Sweden, estimates from sources like the Swedish National Council for Crime Prevention (BRÅ) where mentioned and suggest that around 130 billion SEK is laundered annually. This figure emphasizes the need for robust measures and systems to detect and prevent such activities.

Data and the future of AML

The event also covered the importance of improving data quality and sourcing to enhance the detection of money laundering activities. The challenge of false positives remains, but continuous improvements are being made. Much is happening at both national and international levels with new laws and collaborative initiatives between public and private sector that are beginning to show results, yet there is still much more to be done. It’s a cat and mouse game,

Effective communication and strategic partnerships between client banks and tech providers are also crucial. These collaborations, along with a robust approach to risk management and compliance, are essential for maintaining a holistic view of the threats and ensuring the highest standards of financial security.

The role of Tietoevry Banking in mitigating financial crimes

Tietoevry Banking offers comprehensive solutions designed for the early detection and prevention of fraud and money laundering. Our services span from supporting customer KYC/onboarding processes, assessing risks, to monitoring transactions across lending, banking, and card transactions. Our leading software, with machine learning and AI technology, combined with our dedicated teams available 24/7, enable us to monitor billions of transactions and applications every year. This helps banks and businesses to prevent them from being exploited for money laundering and other financial crimes.

What do you think and what are your challenges when it comes to AML? Reach out if you want to discuss or get to know more about our services.