Bank of Valletta is currently in the process of updating the profiles of its customer base. One cannot stress enough the importance of having updated and accurate customer information. This is even more relevant when considering the environment within which BOV operates.

Banks today face global challenges that have been affecting all stakeholders in the financial industry, especially when it comes to the risks posed by financial crime.

As part of the global effort in combating financial crime, financial institutions are required to comply with a variety of laws and regulations related to anti-money laundering (AML) and counter-terrorism financing (CTF). These laws are in place to protect the integrity of the financial system, while preventing activity that harms society as a whole.

As the largest, systemically important local bank, Bank of Valletta takes its regulatory obligations very seriously. Not only do we need to abide by these regulatory obligations that require us to conduct due diligence of both new and existing customers, but we also need to focus our efforts on safeguarding our customers and preventing fraud, while offering better overall customer service.

It is not easy to strike this balance, but over the past years the bank has invested significantly in this regard. We have also invested in robust security measures and processes to monitor and detect possible signs of criminal activity, in this way always protecting customer interests.

Revising customer profiles on a regular basis ensures that banks are not facilitating illegal activities and is also crucial for detecting and preventing fraud

This is where updating of customer records comes in. Revising customer profiles on a regular basis ensures that banks are not facilitating illegal activities and is also crucial for detecting and preventing fraud, since fraudsters often use stolen identities to carry out such illegal activities.

This process is also crucial for building and maintaining long-term relationships. With customer information changing over time, this allows us to offer more personalised and tailored products and services and an overall improved customer experience.

In light of all this, the bank is currently reaching out to its customers to update their profiles with accurate, complete and factual information. This includes elements such as customer identity, address, occupation, source of funds and other information relevant to the operation of their accounts. In some instances, we also ask for supporting documentation, proportionate with the risk profile of the customer and the related account activity.

Banks use a combination of traditional and digital channels to reach out to customers. This ensures that customers have multiple options and can choose the method that is most convenient for them.

The approach currently being taken by the bank is through mail, phone or through direct contact at our branches. This does not exclude the possibility of the introduction of digital means in the near future, for an even more efficient and seamless method of updating information.

We are also highly aware of numerous scams currently doing the rounds, asking customers to click on unverified links through SMSs and soliciting customers to give out account or card details or even make payments.

The bank does not ask for this type of information, nor do we ask customers to make payments or effect transactions. What we normally ask for is profile details that do not compromise the customer’s security in any way. It is important to always be vigilant and only respond to official bank communication. When in doubt, it is better to contact a bank representative to verify rather than give out compromising details.

It is in the interest of both the bank and our customers to have an updated profile. Due diligence reviews are not tick-box exercises, but important risk management practices that strengthen the legitimacy of the business passing through the bank.

We are also extremely sensitive to the disruption that this may cause our customers. We are, therefore, offering guidance and assistance to mitigate such discomfort and will be helping and guiding our customers to make this important exercise as effortless as possible.

Josef Galea is head, BOV Anti-Financial Crime Unit.