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Why and how to embrace entity resolution and contextual monitoring
Journal of Financial Compliance,
7
(1),
7-14
(2023)
Abstract
Criminal activity is an unfortunate constant in life. Some criminals are highly sophisticated, others not so much. The common objective of each criminal, regardless of the level of sophistication, is to stay at least one step ahead of the system of controls in place to prevent, detect and report their illicit activity. From a transaction monitoring perspective, criminals had a significant advantage for some time with the ineffective rules-based transaction monitoring (RBTM) that most banks utilise. The scale is beginning to tip back in our favour with the advent of new and improved technologies, such as entity resolution and contextual monitoring (ER/CM). The purpose of this paper is to demonstrate the clear advantages of ER/CM and what you as practitioners should consider when deciding if you should make the switch and what to consider when implementing the technology.
Keywords: regulatory technology (RegTech); entity resolution; contextual monitoring; risk-based approach; risk appetite
The full article is available to subscribers to the journal.
Author's Biography
Aaron Wolf is a proven leader and subject-matter expert in financial crime compliance (FCC) covering anti-money laundering (AML), sanctions, anti-bribery & corruption (ABC) and fraud. His experience has spanned all major lines of business (corporate banking, retail banking, commercial banking, private banking and investment banking). He has significant international experience leading global and regional AFC programs across hundreds of countries and working abroad in the UK. Aaron has worked extensively with regulatory authorities and monitors across the globe. He has been recruited and trained by former heads of the Financial Crimes Enforcement Network and Office of Foreign Assets Control and by former regulators at the Federal Reserve Bank (FRB). He is a frequent speaker at industry events covering topics, such as the future of financial crime, the convergence of AML, fraud and cyber, and regulatory technology (RegTech) innovation in financial crime. Aaron has a master's degree in international economics and a bachelor's degree in finance, both from Pace University, and a Six Sigma Green Belt certification.
