With the US Justice Department’s recent massive takedown of French bank BNP Paribas, coupled with billions of dollars of fines for the likes of JP Morgan Chase and Barclays (to name but a few), it’s clear that banks have been put on notice. Not only will regulators and other enforcement agencies discover and prosecute fraud, corruption, and other criminal behavior within the global financial services industry, but they are also committed to improving their technical forensic capabilities across the board.
The criminals, of course, are also rapidly innovating their technology and their tactics, both within institutions as well as outside them. Money laundering, for example, has become increasingly sophisticated since the economic downturn of the last decade. Furthermore, the money launderers always seem to have an edge, as they obscure their activities by using the complexity of the global financial infrastructure to their advantage.
These two trends – the increasing technical sophistication of both the bad actors as well as the regulators – puts banks in a bind. They can no longer simply implement standard technologies and controls in order to please regulators, and chalk up any losses that squeak through to the cost of doing business.
Read the entire article at http://www.forbes.com/sites/jasonbloomberg/2014/07/29/three-way-big-data-banking-battle-brewing/.
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