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Globex Brings AML Solution, Integrates with its Blockchain Powered Solutions

Globex Brings AML Solution, Integrates with its Blockchain Powered Solutions

Globex recently announced its collaboration with NIBA (National Investment Banking Association) to offer advanced anti-money laundering “AML” screening software to NIBA members and small-cap broker-dealers at no easy cost and only a small-scale monthly fee. 

Globex is a SaaS business with its proprietary blockchain software solutions powers the next generation of exchanges and securities offerings.

National Investment Banking Association (NIBA) is a national business association of regional and independent brokerages, investment banking firms, fund managers and affiliated capital market service providers.

This collaboration confirms the requirement for technology solutions to systematically and effectively control AML (Anti-money laundering) compliance demands.

Executive Opinion

NIBA Executive Director Emily Foshee said, “Compliance costs can be a huge burden for broker dealers, especially smaller firms which rely on manual efforts and outdated systems to accomplish AML efforts. We are thrilled to partner with Globex and offer our members best-in-class technology solutions to enhance AML efforts.”

Globex CEO Brian Collins said, “What we’ve found is that firms are incurring increased labor costs and exposing themselves to unnecessary AML violations,”. “We’ve built our technology to reduce manual file reviews and follow a regulator-aligned due diligence process, and are honored to have NIBA’s stamp of approval on our solution.”

Significance of AML

FINRA (The Financial Industry Regulatory Authority) and the SEC’s Office of Compliance Inspections and Examinations (OCIE) described AML (Anti-money laundering) as a prime concern for 2019, with the OCIE resuming its inspections of broker-dealers’ AML programs.

The announcement referred to 2018 report from LexisNexis Risk Solutions and stated that U.S. financial services (USFSC) firms expend approximately $25.3 billion per annum on AML compliance. The cost of AML compliance hits way harder to smaller firms. NIBA and Globex’s collaboration aims to provide firms with the required tech to both increase compliance endeavours and lessen labour costs via the Globex technology solutions.

Globex's AML screening software, AMLCop, combines with a firm’s existing AML policies and smoothly-runs the verification of user details against a proprietary database of global sanctions, Politically Exposed Persons (PEPs), and watchlists, notes the announcement.

According to the website, AMLcop integrates with KYCware and Custodyware. KYCware provides an end-to-end guarantee of data integrity and immutability of the records on the Ethereum blockchain provides a guarantee that the data contained in the KYC submission has not been altered in transit. The CustodyWare solution allows a designated Transfer Agent to act as custodian of an investor's blockchain assets.

Firms can run checks against the database, manage flagged individuals, and control timestamped reports of all AML verifications, the announcement said.


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Dushyant Bhadauria Opinions expressed by techsutram contributors are their own. More details

Dushyant is an fanatic student of journalism and mass communication. His interest in the subject arises specifically because of business communication. He is interested in this field because he believes that through his readings he can assist other beings in making the right decisions related to business.

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