National Financial Crime Fighter Day: How we combat financial crime

Martin Xerri, Money Laundering Reporting Officer at MeDirect Bank (Malta) plc

26^th October marks National Financial Crime Fighter Day, a day dedicated to recognising the efforts of those who work relentlessly to protect our financial systems from criminal activities. Banks play a crucial role in this fight, employing a variety of strategies and technologies to detect and prevent financial crime. Here’s a look at some of the key actions taken by MeDirect to safeguard our financial systems and protect our customers.

1. Anti-Money Laundering (AML) Programme

Our Anti-Money Laundering (AML) programme is designed to prevent criminals from disguising illegally obtained funds as legitimate income. We have put in place robust AML policies that include monitoring transactions, reporting suspicious activities to authorities, and conducting regular audits. Such a programme is essential in identifying and intercepting money laundering activities.

2. Know Your Customer (KYC) Procedures

Know Your Customer (KYC) procedures are fundamental in preventing financial crime. Banks are required to verify the identity of their customers and understand the nature of their financial activities. This involves collecting and analysing information about customers to ensure they are not involved in illegal activities. Enhanced due diligence is performed for high-risk customers, ensuring that banks have a comprehensive understanding of their clients.

3. Advanced Technology and Analytics

Banks are increasingly leveraging advanced technology and analytics to monitor transactions and identify suspicious activities. Enhancing our systems with artificial intelligence (AI) is at the forefront of these efforts, enabling the analysis of vast amounts of data quickly and accurately. These technologies help in detecting patterns that may indicate fraudulent activities.

4. Employee Training and Awareness

Training and awareness programmes for bank employees are critical in the fight against financial crime. At MeDirect we ensure our employees are trained to recognise signs of suspicious activities and understand the procedures for reporting them. Regular training ensures that staff are up-to-date with the latest regulations and best practices, enhancing the bank’s overall ability to prevent financial crime.

5. Regulatory Compliance

Compliance with regulatory requirements is a cornerstone of MeDirect’s efforts to combat financial crime. Banks must adhere to a range of regulations designed to prevent financial crime, including those related to KYC, AML, and reporting obligations. Compliance ensures that banks operate within the legal framework and contribute to the broader efforts to combat financial crime.

6. Collaboration with Law Enforcement and Public-Private Partnerships

At MeDirect we collaborate closely with regulators and law enforcement agencies to combat financial crime. Such a collaboration makes it easier for Law Enforcement Agencies to track and apprehend criminals.  By working together, Banks and these entities can develop more effective strategies to combat financial crime and protect the integrity of the financial system. In fact, Banks are often crucial in this process as they provide law enforcement with data on suspicious transactions and cooperate in investigations, leading to more effective enforcement actions.

8. Customer Protection

All these measures are ultimately aimed at protecting our customers from financial crime. By implementing stringent security protocols and monitoring systems, we strive to ensure that our customers’ funds and personal information are safeguarded. This helps prevent customers from falling victim to fraud and other criminal activities, providing them with a secure banking experience.

Customers can also contribute to the fight against Financial Crime by always being vigilant and proactive. Here are some key steps individuals can take to safeguard their finances:

1. Personal Details – Ensure that personal details held by your bank are always up-to-date. This helps banks to  serve you better and protect your account. Cooperating in verifying information when asked is greatly appreciated.
2. Use Strong Passwords and Multi-Factor Authentication (MFA) – Create strong, unique passwords for your accounts and change them regularly. Enable multi-factor authentication (MFA) wherever possible.
3. Be Cautious with Emails and Links – Phishing scams are a common method used by criminals to steal personal information.
4. Monitor Your Accounts Regularly – Regularly check your bank and credit card statements for any unauthorised transactions.
5. Secure Your Devices – Ensure that devices, including smartphones, tablets, and computers, are protected with up-to-date antivirus software and firewalls.
6. Protect Your Personal Information – Be mindful of the information you share online, especially on social media.
7. Keep Updated About Common Scams – Stay informed about the latest financial scams and how they operate.
8. Report Suspicious Activity – If you notice any suspicious activity or believe you have been a victim of financial crime, report it immediately to your bank and local law enforcement.

On National Financial Crime Fighter Day, it’s important to recognise the significant efforts made by banks to protect our financial systems and their customers. At MeDirect we try to contribute to these efforts through our team efforts, advanced technology, stringent procedures, and close collaboration with the law enforcement authorities.

Banks play a vital role in detecting and preventing financial crime. These efforts not only safeguard the financial system but also contribute to the stability of our society and overall security of our staff and customers.

MeDirect Bank (Malta) plc, company registration number C34125, is regulated by the Malta Financial Services Authority and is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371) and investment services under the Investment Services Act (Cap. 370).

MeDirect Bank (Malta) plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994.