Communications surveillance in financial institutions: What is new, what is changed and why it is still broken
Abstract
This paper explores the persistent challenges in communications surveillance within the financial services industry, highlighting how, despite technological advancements, these systems often fail to achieve a balance between precision and scalability. The paper examines three core pillars of modern surveillance: data governance, detection and alert generation and alert disposition and analytics. Furthermore, the paper provides practical recommendations for compliance and regulatory professionals. It delves into the strategic ‘build versus buy’ decision for surveillance technology and outlines best practices for data management, model validation and alert handling. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
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Author's Biography
Alexander Aronov is the Head of Surveillance and Employee Compliance Intelligence at Citigroup with extensive experience in the financial industry, specialising in compliance and data intelligence. Prior to joining Citigroup, Alexander held senior compliance roles at Goldman Sachs, J.P. Morgan and HSBC, focusing on regulatory remediations, strategic compliance programme development and compliance risk assessment. Earlier in his career, Alexander served as a Programme Director at FINRA Market Regulation, overseeing the development of the cross-market surveillance programme. Alexander received his BS degree in applied mathematics and information systems from the University at Stony Brook and his JD degree from the New York Law School. He is admitted to the New York and New Jersey bar.
