Combatting the growth of financial crime 

Financial crime is a growing global issue. Industries such as banking, asset management, insurance, real estate, and law must stay ahead of these risks. Compliance leaders must protect their companies from money laundering, fraud, bribery, and tax evasion and manage regulatory sanctions. 

Argus Pro LLP has developed The Aegis 9 Framework™ to help organisations assess the strength of their Anti-Financial Crime (AFC) processes. 

The Aegis 9 Framework™ uses a globally recognised approach trusted by industry leaders. Argus Pro’s assessment measures a firm's AFC processes across crucial areas, including Money Laundering, Know Your Customer (KYC), Fraud, Sanctions, Bribery, Corruption, and Tax Evasion. It also examines data practices and compliance culture, two essential components of any strong AFC programme. 

But how does Argus Pro’s assessment measure up to the Wolfsberg Group’s Principles for Auditing for Effectiveness, a leading industry standard? 

Wolfsberg Group’s Principles and Argus Pro’s Alignment 

The Wolfsberg Group is a coalition of banks working to prevent financial crime. It outlines three key factors for evaluating financial crime risk management:

1. Compliance with Laws and Regulations
2. Implementing Risk-Based Controls
3. Providing Useful Information to Authorities

Let’s examine how Argus Pro’s assessment aligns with and often exceeds these principles.

Ensuring Compliance with Laws and Regulations

The Wolfsberg Group's first principle emphasises the importance of complying with relevant laws. A firm’s AFC programme must adhere to these rules, and Internal Audit should verify compliance. Argus Pro’s Aegis 9 Framework™ begins with foundational questions, asking if the firm has documented policies for each area of anti-financial crime. This ensures that firms meet basic regulatory standards.

Argus Pro’s approach goes beyond a simple checklist. It evaluates how well policies are understood and applied across the firm. This step reveals any irregularities in implementation, aligning closely with the Wolfsberg Group’s focus on compliance. By ensuring a comprehensive approach, firms can be confident they are legally compliant and building a strong foundation for financial crime prevention.

Implementing Risk-Based Controls

The Wolfsberg Group’s second principle recommends creating risk-based controls to address each firm’s unique risks. Financial crime risks vary with factors like company size, location, and clientele. The Wolfsberg Group encourages firms to assess their specific risks and create controls tailored to address these issues.

Argus Pro’s assessment mirrors this principle by evaluating the effectiveness of a firm's AFC processes. It also examines the company’s ability to improve controls based on data insights. This approach ensures that companies don’t just implement superficial controls but establish defences that genuinely protect the business.

Argus Pro’s framework also gathers feedback across all organisational levels, from junior employees to executives. This process uncovers any “Icebergs of Ignorance” or hidden issues that could weaken AFC compliance. Argus Pro aligns with the Wolfsberg Group’s ideal of robust, risk-based financial crime prevention by emphasising direct risk management and organisation-wide input.

Providing Highly Useful Information

The third Wolfsberg principle stresses the importance of sharing information with government agencies and law enforcement. By doing so, financial institutions support broader efforts to combat financial crime. However, the Wolfsberg Group stresses that this data must be accurate and useful for authorities.

Argus Pro’s Aegis 9 Framework™ focuses on the internal data that informs these external reports. The assessment determines if firms collect and track data on their control effectiveness. This internal, data-driven approach allows companies to produce accurate and clear reports for authorities, demonstrating their commitment to fighting financial crime.

Argus Pro’s focus on regular reporting to senior management also ensures executive leaders are fully informed. This accountability improves internal and external reporting and supports quick responses to emerging risks.

Continuous Improvement – Argus Pro’s Key Strength

A defining feature of Argus Pro’s Aegis 9 Framework™ is its focus on continuous improvement. Argus Pro encourages firms to evaluate and enhance their financial crime processes regularly. This aligns perfectly with the Wolfsberg Group’s call for dynamic, adaptable risk management programs that respond to new threats.

For financial institutions today, where new forms of crime emerge quickly, continuous improvement is essential. Argus Pro’s emphasis on regularly updating and refining AFC processes ensures that firms remain vigilant and prepared.

A Comprehensive Solution

Argus Pro’s assessment goes beyond simple compliance checks. By evaluating policies, data tracking, and continuous improvement, Argus Pro provides firms with a complete view of their AFC readiness. This comprehensive approach enables Chief Compliance Officers, MLROs, Heads of Financial Crime, and other leaders to proactively strengthen their defences against financial crime.

Why Argus Pro Stands Out

Argus Pro’s approach to assessing AFC process effectiveness is thorough and reliable. It aligns with the Wolfsberg Group’s standards and ensures engagement at all organisational levels. Data tracking and a commitment to improvement make Argus Pro's Aegis 9 Framework™ a valuable asset for firms aiming to prevent financial crime and regulatory penalties.

Argus Pro's assessment offers a path to achieving high anti-financial crime standards for compliance or risk leaders in banking, asset management, real estate, or professional services.

Engage with Argus Pro to strengthen your organisation’s defences and build a robust compliance culture across all levels.