Banking regulators flexible with regulatory sanctions due to pandemic, for now...

Taken into account what the world is going through right now, regulators are expected to remain flexible. This will allow banks to hold their capital and buffers to the max until the pandemic is over.

Nevertheless, most regulatory authorities have confirmed that their pandemic related support will end at the end of 2021 or the beginning of 2022 at the latest. The ECB for example has announced that banks are allowed to operate below Pillar 2 guidance and combined buffer requirements until at least the end of 2022. This allows them to operate without automatically triggering supervisory actions.

Although banking authorities in Europe and North America have taken a more patient stance on some capital, liquidity, and risk-provisioning rules, they continue to hold the line in most of the other areas. In 2020, financial services in these regions needed to pay up to $13 billion in penalties, with the vast majority of that amount forfeited by North American banks.

Looking to the future, we expect that regulators will place increased emphasis on anti-money-laundering provisions. The European Banking Authority (EBA), drafted a regulation that will require banks operating within Europe to impose stricter quality controls in order to reduce the risk of illicit funds passing through their institutions.

At Harmoney, we offer banks a complete and modular end-to-end KYC/CDD solution that digitizes all of your current processes and can be tailored completely to your preferences and needs. Harmoney integrates seamlessly with your current processes, systems and point solutions, including 3rd party data providers and automatic capture of information!

It’s the centralized end-to-end KYC/CDD platform, including our digital onboarding and AML-investigation modules that brings all your KYC data together both for customer, front and back office - whenever they need it. Whether it’s to give customers a clear, centralized overview in their Financial Passport of all their products and services at your bank, or to spare them from repetitive actions every time they interact with you. Up to when your people need a full and complete audit trail of a customer for KYC/AML investigation purposes, where the front and back office are working with exactly the same data, that’s always accurate, complete and up-to-date.

We even completely remove the need for remediating dossiers since we provide continuous compliance with our platform, where every dossier automatically is compliant towards the latest regulations, every time regulations are updated or changed internationally and locally. With an always expanding and stricter regulation, that isn’t to be considered as a luxury, it’s the new standard. By digitizing your remediation processes, we see much higher response rates, smoother interaction vs classic processes and more accurate and complete data.

At Harmoney, we make your bank KYC/CDD future-proof whilst driving incredible savings and performance & efficiency increases. And most importantly, make compliance a frictionless-as-technically-possible experience for both your customers and your staff.

Want to learn more? Feel free to contact us for a discovery meeting or more information