Hazem Mulhim is the founder and CEO at Eastnets with a career spanning 35 years in international markets. After his graduation from Bulgaria with a Master’s degree in Electronics Engineering and Medical Electronics, Mulhim began his career with Siemens in Kuwait in 1980. In 1984, he moved to Jordan to establish what is now Eastnets.

Mulhim had also continued his academic drive, earning a Certificate of Advanced Management Program (AMP) from the prestigious Institute of INSEAD, France, and an OWP from IMD Lausanne, Switzerland.

Following are the edited excerpts of a recent conversation BR Research had with him:

BR Research: What are the most important challenges of the financial services sector today when it comes to protecting their clients and their reputation?

Hazem Mulhim: The financial services sector faces several challenges in protecting clients and maintaining their reputation. These challenges include cybersecurity threats, data breaches, identity theft, regulatory compliance, and the evolving landscape of financial crimes such as fraud and money laundering. Additionally, the rapid advancement of technology introduces new vulnerabilities that need to be addressed to ensure the security and trust of clients.

The fourth industrial revolution is emerging in the world, with Artificial Intelligence is transforming every industry, including the financial sector.

The financial institutions need Rs. 400 billion worldwide to revamp their systems through the acquisition of cybersecurity technology and the capacity building of their workforce. Organized financial crimes are increasing worldwide, constituting 2 percent of the global GDP.

BRR: Money laundering is a pressing issue in Pakistan, as it poses significant challenges to the country’s financial stability and security. How can technology play a role in addressing these challenges?

HM: Technology can play a crucial role in addressing money laundering challenges in Pakistan. Advanced analytics, artificial intelligence, and machine learning can be employed to analyze vast amounts of financial data in real-time, helping to identify unusual patterns and transactions that may indicate money laundering. Additionally, the implementation of blockchain technology can enhance transparency and traceability of financial transactions, making it more difficult for illicit funds to be laundered.

BRR: What are the most important technological advancements today in the fight against financial crime, and do you see them coming to Pakistan?

HM: Technological advancements in the fight against financial crime include predictive analytics, machine learning, artificial intelligence, and blockchain. These technologies enhance the ability to detect suspicious activities, automate compliance processes, and improve overall security. The adoption of these technologies in Pakistan would depend on regulatory support, infrastructure development, and the willingness of financial institutions to invest in these solutions.

The banking regulator imposed huge penalties on financial institutions for failure to comply with regulations to prevent the loss of money at the hands of criminals, but regulatory measures are not enough to stop the menace. The technological solutions and applications are the most effective tools to comply with the regulations pertaining to anti-money laundering and the increasing threat of financial crimes at domestic and cross-border levels within the banking systems.

Pakistan is an emerging and important market for the financial sector, which should keep its system updated with advanced technological solutions to maintain its position on the whitelist of the Financial Action Task Force (FATF). In this regard, all stakeholders should work together, including banking regulators, banking companies, and financial institutions.

BRR: What in your view is the potential of the Pakistani market?

HM: We have been operating in Pakistan for a significant period, with a dedicated office to cater to the local market. We are providing various services to large commercial banks in Pakistan, with an increasing number of service portfolios. Considering the emerging financial crimes and trade-based money laundering, the scope of our company is promising in Pakistan.

As the financial market of Pakistan is evolving with new players making their debuts, such as fintech operators and digital banks, it is expected that our scale of business will grow with innovative applications and solutions for the financial sector of this country. We are playing an important role in supporting the financial institutions of the country to achieve maximum financial inclusion in Pakistan.

Our global expertise enabled us to work with commercial banks in Pakistan to connect them with the Swift network. This exercise will bring marked improvements in the transactions of Pakistani banks with foreign banks in different countries.

BRR: How crucial is regional and global cooperation in overcoming the challenges faced by banks in staying safe and keeping their clients safe today?

HM: Regional and global cooperation is crucial in overcoming challenges faced by banks. Financial crimes often cross borders, and collaboration between countries and financial institutions is essential to share information, best practices, and coordinate efforts to combat illicit activities. This cooperation strengthens the collective ability to detect and prevent financial crimes, enhancing the overall security of the global financial system.

Like many countries Pakistan is facing emerging challenges. New challenges are related to trade-based money laundering and also one of its (Pakistan) pillars is the trade. Trade-based money laundering is important to combat and this requires lots of applications and systems and policies and lots of work.

BRR: What, in your opinion, are the key driving forces today for innovation in the financial services industry?

HM: The key driving forces for innovation in the financial services industry include customer demand for seamless and personalized experiences, regulatory requirements pushing for improved security and compliance, and the rapid advancement of technology. Fintech startups, as well as traditional financial institutions, are driven to innovate to stay competitive, reduce costs, and adapt to the changing expectations of consumers.

BRR: Can you tell us more about Eastnets’ global journey and expertise as a global technology provider in financial crime and payment modernization?

HM: Eastnets is a global leader in providing compliance and payment solutions for the financial services sector. With over 35 years of experience, our expertise fosters trust in 800 financial institutions worldwide, including 11 of the top 50 banks. We are dedicated to ensuring global financial safety and security by assisting our partners in risk management through screening, monitoring, analysis, and reporting. Our commitment extends to state-of-the-art consultancy and customer support.

As specialists in comprehensive payment systems, we excel at transforming payment challenges into opportunities, empowering financial institutions to operate with increased efficiency and cost-effectiveness. Over 270 corporate and financial institutions trust us for outsourced SWIFT connectivity and compliance software solutions.

BRR: What would you say are the core competencies of Eastnets and its unique advantage for its customers?

HM: Eastnets’ core competencies likely include expertise in developing and implementing technologies to combat financial crime, including anti-money laundering (AML) solutions and payment modernization tools. Their unique advantage may stem from innovative technologies, a strong understanding of regulatory landscapes, and a commitment to helping clients navigate and comply with complex financial regulations. For specific and up-to-date information, it’s best to refer to Eastnets’ official communications and documentation.