Research Highlights Corporate Failings in Financial Crime

Research by Datanomic has shown that financial services companies typically waste 75% of their time each month dealing with recurring ‘false positives’ produced by inefficient and ineffective matching of their customer records with lists of known or suspected criminals and politically exposed persons (PEPs). In spite of their efforts, this research suggests that an alarming number of companies in the financial services sector are unknowingly doing business with criminals, terrorists or money launderers. The typical number of suspicious activity reports (SARs) that a money laundering reporting officer (MLRO) raises following an audit by Datanomic on even in just a sub-set of a financial services company’s data is between five and nine SARs. For example, a recent review of 30% of customer data from a large London-based investment house resulted in seven SARs. Typically, a Datanomic audit reveals around 4% of an organisation’s customers are matches to World-Check’s Watch & PEP List, and a quarter of these relate to financial crime.


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