March 24, 2016
FICO survey of bank executives finds 88 percent of respondents foresee growth in terrorism funding this year
47 percent of respondents say counter-terrorism efforts will be centered on know your customer and customer due diligence measures
Less than half of respondents have adopted the key Financial Action Task Force recommendation of a risk-based approach to KYC
At the 2015 FICO Fraud Forum held in Bali, Indonesia, a survey of 36 executives from 18 leading APAC banks revealed that 88 percent of respondents anticipate terrorist funding to grow this year. Respondents were also asked if recent terrorism events had increased the focus on counter-terrorism at their organization, with 61 percent confirming that it had. For 47 percent of respondents, financial compliance to fight terrorism this year will be largely focused on know your customer (KYC) and ongoing customer due diligence (CDD), with another 13 percent saying stand-alone efforts in counter-terrorism financing (CTF) are most critical in 2016 for their respective banks.
While 67 percent of the respondents in FICO’s survey believe they are fully compliant with FATF recommendations, only 48 percent of them follow the risk-based approach prescribed by the FATF. The difference represents a gap in understanding of full compliance.