Wednesday, February 6, 2019

Trending AML Compliance Measures in 2019

Trending AML Compliance Measures in 2019

Compliance with anti money laundering laws and regulations is a must for banks and financial institutions. As the world gets more and more digitised and business processes get less time consuming, AML compliance is also one thing that has gained improved receptiveness. Moreover, as regulatory authorities increase pressure on financial institutes to adhere to practical compliance systems. This has increased the need for companies to build efficient data-driven tools to improve their AML programs. Some trends that are taking root and will dominate during the year 2019 are;

Trending AML Compliance Measures in 2019

Compliance in the Crypto Sector

As financial regulators all over the world have tightened their regulations on digital currencies, anti money laundering checks have also become essential for crypto exchanges in many countries. Digital currencies like Bitcoin have been long infamous for attracting illicit activities, that encourage fraudsters and cybercriminals due to the anonymity it renders to investors. Additionally, its lack of regulation makes a lot of governmental authorities sceptical about the activities people use it for.
However, last year FATF announced that it will be releasing International AML standards for the crypto sector. This can give a certain level of legitimacy to the industry. Complying with AML regulations can only help improve crypto’s reputation across the market.

Increased Demand of Digitised AML in FinTech

Financial Technology, more commonly referred to as FinTech, will be a major contributor towards driving demand in the AML compliance sector. There is a dire need for financial companies to adopt digitised solutions to perform AML screenings. The outdated systems used to screen clients generate an immense number of false positives. This requires banks and other financial companies to adopt smart measures to comply with anti money laundering regulations.
Automated solutions are now available in the market to allow banks to verify their customers in real time. FinTech developers have come up with systematic solutions to perform AML and background checks of customers. Such services are also provided by KYC (Know Your Customer) verification service providers who can provide AML checks in real time.

Legislation Expected for Ultimate Beneficial Owners

The notorious Panama Papers only managed to reveal the tip of the iceberg for the fact as to how money launderers make use of offshore companies and accounts to hide their identities and the money trail. The year 2019 is expected to see international legislation or standards to be put in place to identify the ultimate beneficial owner of a property or assets. Policymakers and international bodies were seen dedicated to the goal that standards need to be put in place to establish proper beneficial ownership. This can immensely help financial institutes to develop better compliance measures.

Transaction Monitoring Methods Become a Norm

Since most of the money laundering process involves financial institutions, it is important for such companies to assess the risk posed by various clients. To do so applying a transaction monitoring system becomes essential for them. The year 2019 is expected to see a significant increase in the implementation of such monitoring systems. This can improve the AML compliance process for banks.


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