The latest compliance news: regulatory developments, punishments, guidance, permissions, new product and service offerings.

Fenergo
Fenergo, the Ireland-headquartered firm operating in multiple locations, has launched AI Powered CLM, a new set of artificial intelligence capabilities for know-your-client and anti-money laundering compliance.  

The new offering will enable firms to spot and mitigate the risks posed by financial crime more accurately, as well as meet their KYC, AML and sanctions obligations.

Fenergo said that recent data shows that penalties for breaching rules totalled $6.6 billion in 2023, from $4.2 billion in 2022, highlighting what’s at stake in getting compliance wrong.

The new offering covers three separate areas scheduled for release between now and the fourth quarter of this year: Intelligent Document Processing (IDP), Advanced Reporting, and AI Assistant. 

AI – a hot area in technology – can give rise to new compliance headaches, but the Fenergo rollout is an example of how they can be potentially mitigated.

“Regulators across the globe are tightening their grip on financial crime prevention, enforcing tougher penalties for compliance failures and launching new initiatives like the EU’s Anti-Money Laundering Authority,” Stella Clarke, chief strategy officer at Fenergo, said. 

“Against this backdrop, it is crucial banks look to bolster their capabilities with regards to client onboarding, due diligence and regulatory reporting – especially considering the growing shortage of compliance professionals globally,” she said. 

Besides its Ireland base, the firm also has offices in North America, the UK, Poland, Spain, South Africa, Asia-Pacific, and the United Arab Emirates.

The Monetary Authority of Singapore
The Monetary Authority of Singapore has issued an updated set of “Guidelines on Fair Dealing,” which widen the scope to cover all financial institutions and all products and services they offer. 

The guidelines raise standards of fair dealing and improve the experience of customers dealing with FIs, the Singaporean regulator said in a statement late last week. 

Institutions will be expected to incorporate key principles of fair dealing at various stages of a product’s life cycle, or services rendered.  

Clients can expect:

-- Products suited to the needs of the target market segment;
-- Advice with suitable product recommendations, accurate representation of information and extra consideration for those who are more vulnerable;
-- Clear explanations of a product and its terms and conditions; and
-- Independent and responsive handling of feedback. 

The guidelines were first introduced in 2009 under the Financial Advisers Act.