Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF)

PwC has a proven experience in the enhancement of KYC processes and in building up an efficient and robust AML/CTF framework.

Tackling financial crime for the integrity of the financial system

Financial institutions around the world continuously struggle to respond to financial crime. Meanwhile, law enforcement agencies and financial regulators have placed the fight against money laundering and terrorist financing at the top of their agenda, and continue to tighten their demands and requirements. Money Laundering (ML) and Terrorist Financing (TF) cause financial losses, fines, and operational headaches.

Financial institutions must be in a good condition to defend themselves against ML and TF threats, and to try to prevent related incidents.

Is your institution fully equipped to take on the fight against financial crime? Considering the increased risks, and the opportunities available through new digital solutions, it is time to assess whether element(s) of your Anti-Money Laundering (AML) and Know Your Customer (KYC) processes could be upscaled.

Our team of specialists will work with you on the development and implementation of solutions that are suited to your requirements and tailored to your needs.

PwC understands your day-to-day challenges

Regulatory landscape

With the EU’s AML Directives IV, V, and VI, and their associated national implementing regulations, the European Central Bank (ECB)’s integration of ML and TF- related risks in the Supervisory Review and Evaluation Process, along with the European Banking Authority (EBA) Guidelines and Regulatory Technical Standards, the Financial Action Task Force Recommendations, the Wolfsberg Principles (and related Questionnaire), and the Guidelines from the Basel Committee on Banking Supervision, the AML and Counter Terrorism Financing (CTF) regulatory landscape is becoming an almost impenetrable jungle.

Data quality and tools

The detection of money laundering and terrorist financing in an organisation depends heavily on data quality; think about the huge amount of information coming from customer identification and verification, customer segmentation, transactions and third-party sources.

IT systems and applications can help, but the number of services and tools on offer is soaring, and it is becoming increasingly difficult to distinguish between what constitutes added value, and what doesn’t.

Operational burden

KYC obligations require large teams of analysts to process client files, and the fact that such reviews need to be done periodically doesn’t help.

In addition, client outreach requests place a heavy burden on the Front Office, while Compliance teams may struggle to develop suitable policies and procedures, monitor high-risk customers and products, and fulfil reporting obligations.

Expertise and skills

To find experienced staff on the market is not easy! The specific expertise needed within KYC teams can quickly lead to bottlenecks, delays and large backlogs when key personnel drop out.

High-risk products and industries

Institutions providing products or services labelled as high risk (such as Private Banking, Correspondent Banking, etc.) and/or serving clients in high-risk industries (diamond sector, weapons trade, etc.) face even stricter AML monitoring and reporting requirements.

This may lead to institutions moving away from offering these kinds of products and services, and clients in high-risk industries being unable to access financial services.

Reputational risk

The most direct impact of ML/TF accusations on financial institutions’ reputation is through fines and newspaper headlines. There are other factors to consider though: consumers are increasingly demanding a streamlined onboarding process, and the relationship with loyal clients might be undermined by inefficient KYC procedures.

How we can help? 

PwC has proven experience in the enhancement of KYC processes and in building up an efficient and robust AML/CTF framework.

Developing a strong AML/CTF operating model that aligns with the nature of your business and types of clients, drafting and optimising operational policies and procedures, providing KYC analysts and subject matter experts, performing client outreach and quality assurance, and developing and facilitating the implementation of KYC tooling are just some of the ways that PwC can support you.

We can help you to implement:

Translate legislation and regulatory requirements into policies and procedures fitting your organisation.

Assess, select and facilitate the implementation of a wide variety of AML/CTF applications and/or KYC modules.

Review your MIS to improve decision-making efficiency.

Assist you in developing a risk assessment framework and the underlying methodology.

Increase the level of AML/CTF knowledge and awareness of your entire staff.

Effectively manage incidents that may create regulatory or reputational risk.

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Contact us

Géraldine D'Argembeau

Géraldine D'Argembeau

Director, PwC Belgium

Tel: +32 476 47 19 59

Connect with PwC Belgium