![Corporate-people-crowd-walk-walker-office-business-center](https://www.nortonrosefulbright.com/-/media/images/nrf/hero/corporate-people-crowd-walk-walker-office-business-center.jpg?w=265&revision=3d04236d-6ad6-4a07-850d-1f6b56a234e9&revision=5249001779897387904&hash=02AF8A7E35F1B67A8E90E42D1EA1AE7D)
Publication
Keeping your dawn raid guidance current
Unannounced inspections or ‘dawn raids’ are used by antitrust authorities to obtain evidence when there are suspicions that individuals or businesses have infringed the antitrust rules.
There is wide recognition from business and regulators alike that technology, in particular artificial intelligence (AI), will become increasingly important to combat financial crime. Notably, the Financial Conduct Authority in the UK, as well as the Australian Transaction Reports and Analysis Centre, have worked with financial institutions through TechSprints, Codeathons and the Fintel Alliance to enhance their joint objectives. Yet, despite this, the volume and complexity of regulation has made it increasingly difficult for compliance and legal teams to manage this risk. Furthermore, this has been exacerbated by the rise in large monetary fines, the impact of reputational damage, personal liability and even prison sentences. However, it remains essential that RegTech and AI is not seen as the only answer to addressing all financial crime risk, but rather a tool that, if harnessed correctly, can drive greater efficiency in in the management and mitigation of money laundering, bribery and corruption, fraud and sanctions risk.
Almost all people specialising in risk and compliance today would have heard of buzz words such as AI, blockchain, machine learning and smart contracts. However, a bit like the dotcom boom in the early 2000s and the more recent speculation on digital currencies, businesses make decisions, and often with significant implications, with only a cursory understanding of the technology. Most commonly we see:
Recently at a conference, a senior banking executive revealed in conversation that, as she is nearing retirement, she felt she did not need to keep up with developments in technology. The comment took us all aback, but we were heartened when an employee reporting to her said that she disagreed. She contended: “No matter our role, we are all in IT now.” This exchange signified the problem, but also highlighted the solution.
Critical to addressing the above challenge is to:
Publication
Unannounced inspections or ‘dawn raids’ are used by antitrust authorities to obtain evidence when there are suspicions that individuals or businesses have infringed the antitrust rules.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2023