It’s been a turbulent year for anti-money laundering (AML) compliance in big financial institutions. We were bombarded with media headlines in a seemingly never-ending wave of scandals:
“Dutch bank ING fined $900 million for failing to spot money laundering” — Reuters
“Australia’s biggest bank hit with record fine for money-laundering scandal” — CNN
“Credit Suisse censured by watchdog over anti-money laundering failings” — Financial Times
“Deutsche Bank headquarters raided over money laundering” — BBC
To prevent financial crime, banks and other financial service providers establish AML systems. However, it has become challenging to keep these systems effective, with the rapid wave of new technology and more people making cross-border transactions. In parallel, money laundering methods are diverse and are constantly evolving.
New regulations, such as PSD2, 5AMLD and GPDR are raising the compliance bar in an effort to tackle financial crime. In addition, regulatory enforcement has clearly become more stringent, with substantial fines given to businesses who violate AML regulations.
It can be a costly and time-consuming process for financial corporations to stay on top of their AML policies, particularly when global conditions and regulations constantly change. As the threat of money laundering continues to grow, many business leaders are seeking new approaches and innovation in AML.
What is KYC?
Know-your-customer (widely abbreviated to KYC) is a crucial part of AML. It’s how a business identifies and verifies the identity of a client, and a key step when opening new accounts. A thorough KYC procedure will prevent financial service providers from being used, either intentionally or unintentionally, in money laundering crimes.
Can KYC be automated?
In short, yes. Artificial intelligence (also known as AI) has been identified as the most effective solution in terms of cost and time. For example, AI can:
- Manage and screen high volumes of customer profiles and transactions.
- Learn from and adapt to changing environments and inputs, which help firms keep up with the global financial landscape and manage their risk profiles.
- Automate repetitive tasks at scale and with speed, which cuts down on manual labour and reduces the risk of human error.
At Fineksus, we have developed an AI software to manage the KYC process for financial institutions. Our KYC program involves:
- Identifying and verifying customers.
- Screening customers before onboarding them.
- Regularly calculating risk of customers based on dynamically-defined rules of risk categories.
- Dynamic web service integration for customer on-boarding.
- Integration with our in-house PayGate™ suite of financial compliance programs, including PayGate™ Inspector, Analyzer, Search, Maestro, Reconciliation, and Search.
Are you KYC compliant?
It’s essential for financial institutions to do everything in their power to maintain the integrity of their companies. However, it’s clear that the traditional approach to AML is struggling to keep pace with modern money-laundering activity.
At Fineksus, we’ve made it our priority to use AI-backed software to partner with banks, brokers, and corporations to find AML and KYC solutions.
If you want to check if your business is KYC compliant, feel free to fill in the contact form below. One of our consultants will be in touch with you.