Governance, Risk and Compliance (GRC)

Introduction: One of the important Regulatory Compliance requirements of Anti-Money Laundering Frameworks is the performance of activities which is known as Customer Due Diligence.  Before onboarding, the customers are unknown to the company or business because of the non-verification of identification information of the prospective customer.  Due diligence is a process that is performed, to assess the possible risk of Money Laundering or Terrorist Financing (ML/TF), associated with the prospective customer. Due diligence enables organizations to avoid onboarding criminals such as money launderers or terrorists and associated people or organizations. Without performing due diligence, the organizations carry the risk of dealing with customers who may be money launderers, terrorists, or other criminals.   In the past, various organizations, especially banks have been  significantly   penalized by the regulatory authorities, due to the weak Customer Due D...

Use of Data Analytics by Compliance Function   Data analytics or simply analysis of data in a meaningful form is the need for various functions and departments working in an organization. Similar is the case with the Regulatory or Compliance function, of the organization, which is established to ensure compliance with applicable regulatory requirements, by the management and employees of the organization. Data re quired to assess the compliance status may be dispersed in different departments and systems, which need to be identified and extracted on a timely basis. One of the problems is the legacy data, which may be incorrectly maintained, by the business and operation departments of the organization.  For example, the information related to account opened by the organization of different customers may be dispersed with different business departments or branches. Such information may contain errors or violations of applicable regulatory requirements due to various reason...