Financial Crime World

Congo: Credit Unions Take Steps to Combat Financial Crime Amidst Record Growth

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As credit unions worldwide experience unprecedented growth, a new challenge has emerged: preventing financial crime. The World Council of Credit Unions’ latest report reveals that global growth in the sector is on the rise, with figures from the Bank of England showing that credit unions are lending record sums to customers.

However, this growth comes with increased risks of money laundering and financial crime. Smaller credit unions, which often rely on volunteers and limited resources, may be particularly vulnerable to these threats. Money launderers may target these organizations, taking advantage of perceived weaknesses in their anti-money laundering (AML) processes.

Mitigating Risks

To combat these risks, credit unions must implement robust AML programs and regularly review their compliance policies. This can include:

  • Conducting regular risk assessments to identify emerging or evolving threats
  • Reviewing systems and controls to ensure they meet regulatory requirements
  • Implementing automated customer screening and transaction monitoring solutions

Automated Transaction Monitoring Solution

One such solution is Jade ThirdEye, an automated transaction monitoring system designed specifically for credit unions. This system enables organizations to create customized rules to monitor transactions and alert staff to suspicious activity.

For example, credit unions can set up rules to:

  • Identify unusual loan payments
  • Monitor large withdrawals from elderly or vulnerable customers
  • Detect test payments made by recently opened accounts

Watchlist Screening

Jade ThirdEye also allows credit unions to configure watchlist screening from Dow Jones and World-Check, enabling them to detect transactions involving:

  • Politically Exposed Persons (PEPs)
  • Relatives or Close Associates (RCAs)
  • Special Interest Persons (SIPs)
  • Special Interest Entities (SIEs)
  • Individuals convicted of financial crimes

Audit Trail

The system also ensures that user responses to alerts are documented, providing an audit trail in the event of suspicious activity reports or detailed reporting for review.

Prioritizing Financial Crime Prevention

In a region where credit unions play a vital role in serving local communities, it is essential that these organizations prioritize financial crime prevention. By implementing robust AML programs and leveraging automated solutions like Jade ThirdEye, credit unions can protect their members and maintain trust in the sector.

For more information on how Jade ThirdEye is empowering credit unions across the globe, please contact us to access our latest case study.