Financial Service Providers Adopt Combined Approach to Compliance & Financial Crime Says Datamonitor
A telephone survey conducted by Datamonitor on behalf of Norkom Technologies reveals a significant shift in the way financial services providers will manage their regulatory compliance obligations and their efforts to stem financial crime. It reveals that 21% plan to integrate the departments that address financial crime and compliance, along with the technology infrastructures that support their activities.
"Traditionally financial service providers have viewed financial crime and compliance as separate disciplines, said Paul Kerley, CEO of Norkom Technologies, in a release. "But within an increasingly tight-margined industry there is a strong desire to pursue a single investment stream to both reduce criminal losses and drive down the cost of compliance. This is now achievable since single technology platforms are now emerging that can detect crime, investigate it and compile the management information required to fulfill the regulator's requirements."
The research also reveals that traditional corporate structures hamper progress. Organizational inflexibility, the departmental silos that discourage cross functional communication, shared processes and pooled approaches were named as the number one barrier to consolidation by 67% of respondents.
Norkom claims that financial crime costs the global financial services industry $19 billion per annum and that the cost of meeting compliance requirements will increase by 43% over the next three years.
Former AIG General Counsel and New York Fed Officer Patrikis Joins Pillsbury Winthrop Shaw Pittman
International law firm Pillsbury Winthrop Shaw Pittman LLP announced that Ernest Patrikis, senior vice president and general counsel at American International Group, will be joining the firm next month as a partner to lead and expand its regulatory practice for financial services clients. He will be resident in the firm's New York office. Prior to his eight-year tenure at AIG, Patrikis spent 30 years with the Federal Reserve Bank of New York, managing a legal department that advised on all aspects of bank supervision, regulation and enforcement.
Patrikis joined AIG in 1998 as a special advisor to former Chairman M.R. Greenberg. He became general counsel in 1999, taking over one of the largest corporate law departments in the world, with some 460 in-house lawyers.
CC Pace and RiskWatch Team Up to Offer Risk Analysis Software Addressing FFIEC Requirements
CC Pace and RiskWatch announced today that they have reached an agreement with the CC Pace Retail Banking Division to distribute its RiskWatch for Financial Institutions software and use it as part of their consulting solution set.
RiskWatch recently released a new updated version of RiskWatch for Financial Institutions software, which allows organizations to do a self-assessment against the Federal Financial Institutions Examination Council (FFIEC) guidelines. The software also assists organizations to do self-assessments compliance with requirements such as the FFIEC IT Framework, the Gramm-Leach-Bliley Act (GLBA), the HIPAA Final Security Rule, the ISO 17799- 2005 and 27001, SB 1386 (Identity Theft), and the PCI (Payment Card Industry) standards. CC Pace provides consulting services to a diverse group of financial services clients including mortgage originators and servicers, retail and commercial banks, regulatory agencies, GSEs, venture capital firms, and brokerage firms. They specialize in serving the changing business and technology needs of the financial services industry and specialize in providing the technology services that are the most valuable to their clients.
RiskWatch is a provider of security risk assessment and compliance software that automates the risk management process.