In the dynamic landscape of financial crime compliance, financial institutions face ongoing regulatory challenges. The Financial Conduct Authority (FCA) responded to this need by introducing the Consumer Duty, effective July 2023, to ensure accessibility of information for consumers regarding well-valued products and effective problem-solving support. Compliance must not only meet regulatory standards but also enhance resilience in the face of uncertainties that have affected high-profile institutions.
This webinar explores the implications of the Consumer Duty on financial institutions, particularly in client screening and customer due diligence. Against the backdrop of evolving global events and changing sanctions, the speed and accuracy of Know Your Customer (KYC) processes become paramount. The recent sanctions related to the conflict in Ukraine highlight the urgency for swift and AI-driven KYC updates to maintain institutional resiliency.
We will also delve into the transformative role of AI in risk-scoring systems. By implementing AI-powered processes, institutions can respond faster to global developments and changes in sanctions, providing more accurate insights into flagged transactions or clients. However, the importance of transparent and explainable AI becomes evident in light of the Consumer Duty, as seen in recent cases where unexplained account closures raise questions about the treatment of Politically Exposed Persons (PEPs) in KYC processes.
The Consumer Duty is not just a regulatory requirement; it presents an opportunity for financial institutions to leverage emerging technology for the benefit of consumers, ultimately shaping the future standard in the industry.
Join this timely fireside chat to learn more about:
- Navigating the consumer duty landscape
- Client screening in a dynamic world
- AI’s potential for risk-scoring systems
- The imperative of transparent AI
- Global implications of the Consumer Duty
- Dr. Janet Bastiman, Chief Data Scientist, Napier
- Catherine Havasi, Chief of Innovation and Technology Strategy, Babel Street