In 2020, we saw a drastically heightened need for fraud protection as more things switched to digital, accelerated by the COVID-19 pandemic. As we enter the new year, the fight against financial crimes and the need for AML/KYC compliance will continue to be a top priority. Here are a few key AML/KYC trends we’ve identified for 2021.
Customization is critical
AML/KYC workflows were complicated in the past, but technology has begun to simplify workflow management. With leading technology, such as Vital4’s cloud-based software, you can implement KYC/AML screenings without disrupting your current workflow. Vital4 supports a variety of formats for search results so that you can integrate them into existing workflows hassle-free.
AI is no longer an option
Given the sheer volume of data that needs to be processed, AI-based solutions are the only way of the future. AI technology will advance AML/KYC protection and continue to prevail in the new year and beyond. Vital4’s AML/KYC data solution uses machine learning, AI, and other state-of-the-art technologies to find blind spots that competitors miss and reduce false positives up to 100%.
Scan-based IDV will be adopted
Over the last decade, KYC has become increasingly important and is now necessary for monitoring customers, as well as associated parties. Scan-based digital identity identification (IDV) solutions have emerged and will be widely adopted in 2021. Real-time ID verification will guarantee sufficient KYC processes and help organizations avoid potential fraud and fines in the coming years.
UBO laws will impose strict reporting
Effective as of January 1, 2021, Congress enacted the NDAA which “essentially implements a new ultimate beneficial owner, or UBO, reporting regime for many U.S. companies and non-US companies registered to do business in the U.S.” according to JDSurpa. It also imposes requirements on the U.S. Treasury, “including by way of mandating meaningful revision to the current federal regulatory regime applicable to financial institutions in their anti-money laundering (AML) and know-your-customer (KYC) customer due diligence. More stringent reporting is something we can expect to see more of in the future.
Is your data doing enough to ensure AML/KYC compliance in 2021? Contact us to learn how Vital4 provides global screening solutions to help organizations maintain regulatory compliance and mitigate third-party risk.