FinCrime Focus: The profile of a money launderer
In this video, Grant MacDonald, Director of Financial Crime Market Engagement at Experian is joined by John Flynn from Gracechurch, to discuss the characteristics of a money launderer, and how industry data sharing can help detect signs of financial crime.
Money launderers typically use formation agents, shell companies, and complex corporate structures to conceal their identities and transactions, preferring to use multiple current accounts across different banks and transact in round balances under set thresholds. Currently banks can only see their own internal data, making it difficult to detect suspicious transactions which may span across various financial institutions.
Under the Small Business Enterprise Act of 2015, the UK’s largest named banks are mandated to share current account turnover data on a monthly basis. At Experian, we’ve been using this information to build “peer group” profiles, to help understand normal transaction behaviour for each company size and sector, and alerting when behaviour is outside the norm with an “adverse marker”. In combining these adverse markers with industry aggregate transaction data, we can better detect and prevent financial crime.
John Flynn, from financial crime consultancy Gracechurch, joins the discussion to highlight the current limitations of transaction monitoring and the potential impact of industry aggregate transaction data sharing.
How can we help?
With FinCrime becoming ever more sophisticated, it’s more important than ever that you know who you’re in business with. UK banks and financial institutions are spending millions each year fighting financial crime.
There is a better way. Our approach blends the latest technology, data and insight to detect financial crime.
Read our white paper: Sharing industry transaction data to tackle financial crime to learn more.
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To find out more about how Experian can help you uncover financial crime risks, contact us here.Get in touch