Importance of AML Data Governance Program
Data Governance refers to the overall data management that will enable a financial institution to maintain a high quality of data. The key focus areas of data governance include availability, usability, consistency, data integrity and data security. Implementing a data governance framework empowers the organization – including the compliance team – to share information more easily, have increased confidence in the quality of the information, and make better data-related decisions.
Protect Information Privacy: Data governance can be used to protect information privacy. If a financial institution has strict controls over who can access and use sensitive data, it is less likely that data will fall into the wrong hands or be used incorrectly. This is particularly important with the personal data that is used in anti-money laundering (AML) know your customer (KYC) checks.
Lower Compliance Risk through Consistency and Quality: Data governance frameworks should help to make data more consistent, accurate and complete – improving data quality. Implemented correctly, a better approach to data management should also lower compliance risk, including the risk of regulatory fines and sanctions.
Improve Business Functions with Faster, More Accurate Reporting: The same infrastructure that delivers improved regulatory reports will also be able to deliver higher-quality management information to the C-suite and the board faster. Organizations that implement data governance frameworks also usually see an increase in accountability around data, and more collaboration among the teams that create and use data.
Data Governance – Understanding its Importance for AML Compliance, ACA Compliance Group, 2018.
AML and Data Governance: How Well Do You KYD?, Protiviti.