Swamy Ramchandran, Director, Product Marketing and Strategy, Oracle Financial Services. Sweta Chauhan, Principal Product Marketer, Oracle Financial Services
In Part 1 of our series, we looked at human trafficking through the lens of financial crime. In this segment, we explore how advances in financial crime technology can help institutions identify and halt human trafficking networks.
Human trafficking networks rely heavily on legitimate financial services entities and infrastructures to conduct their nefarious activities. And they’ve become quite skilled at using these channels to launder funds. Discovering and tracking their financial footprints is key to disrupting trafficking networks. This reality places financial institutions front and center in global efforts to detect and disrupt this heinous crime.
Financial organizations are increasingly focused on strengthening their anti-money laundering (AML) programs and infrastructure. There are many important considerations to ensure that the new environment can support a full range of AML requirements—whether related to human trafficking, terrorism, the drug trade, and more—and can continue to evolve for a future-proof investment.
We explore seven critical capabilities to consider when embarking on the AML program and technology modernization:
Financial institutions can unwittingly be involved at any stage of the trafficking chain as money is spent, transferred, or laundered. This reality places them at the forefront of the war against human trafficking and induced financial crimes. The sector’s focus on and involvement in disrupting human trafficking has intensified considerably over the last several, and more hard work lies ahead. Financial institutions can no longer be reactive gatekeepers when tackling human trafficking. The costs are simply too high—in the form of fines and devastating reputational damage—if they’re found negligent in detecting or reporting trafficking.
To thwart human trafficking, financial institutions must adopt a holistic anti-financial crime and AML compliance framework that encompasses a top-down commitment; modern and future-proof applications and infrastructure; robust employee training; timely information sharing; and dedication to cross-institutional collaboration.
Oracle is helping financial institutions across the globe elevate their anti-financial crime programs to address ever-changing compliance requirements and embrace their critical role in halting human trafficking networks.
Disclaimer: The information, views, and opinions presented hereof by the authors are solely theirs and are for general information only. These do not constitute legal advice; Oracle disclaims and excludes any liability in respect of the contents or for action taken based on this information.