In the past few years, we have seen a substantial increase in the number of regulations by legal entities to combat financial crimes like money laundering and terrorist activities. Digital identity verification solutions like KYC solutions help to Combat the Financing of Terrorists (CFT) and backs Anti Money Laundering (AML) regulations. Business today is in dire need of KYC and AML compliance to fight back all such frauds. Business owners are employing various measures against these scams but the AML compliance program is effective out of all due to the many perks it offers.
Artificial intelligence like many other fields has transformed how banks transform KYC and AML checks. Additionally, for this need of anti-money laundering, AI-based systems are capable of mining a great volume of data which simplifies the process of identity verification and mitigates the risk of falling prey to the fraudster. Digital KYC is saving a lot of valuable time, resources and efforts that can be refocused on other tasks. AI and Machine learning have automated the whole process of KYC/AML.
Which businesses need to comply with AML and KYC?
Most of the companies are responsible for KYC and AML compliance. Below is a list of the companies that are susceptible to integrate a compact AML compliance answer into their organizations in step with the world AML and KYC regimes:
Non-banks mortgage lenders
Dealers in gold, diamond, and different precious metals
Banks and everyone their subsidiaries
Casinos and online recreation sites
Fintech businesses and plenty of others
Reasons Why Businesses Need Digital KYC solutions?
Following are some perks that digital KYC solutions have bought on the table for businesses:
Track and Tackle Suspicious Activities:
Suspicious activity or suspicious person can be tracked and tackled immediately reported to the concerned department without putting yourself in trouble. This provides a system in place for prompt detection of activities associated with money laundering. For instance, suspicious activity can be the increase in cash deposits of business for any obvious reason or providing little or no information when applying for a bank account.
Regulatory Compliance and Change:
AML and KYC screening ability to counter patterns in a vast range of text enable it to make an understanding of all changing regulatory environment. Useful information can be extracted out of the document during document verification to keep the client and business up to date. It helps banks and other financial institutions to fight back financial frauds.
Screening and Investigation:
Dow Jones-sponsored ACAMS survey revealed that to deal with digital scams is one of the most challenging for bank compliance teams. Underpinning the alert generation method with AML and KYC may end up in fewer false positives. What’s needed is that the linking of high-quality information to the alert (via interpretation associate degreed link analysis) to supply a correct, graphical illustration of the legal entity structure. KYC/AML beside AI will facilitate to leverage antecedently performed steps within the alert investigation method to formulate a suggested next steps approach.
AML and KYC compliances can intelligently extract risk-related facts from a huge volume of data making the process of identity verification a lot more smooth and risk-free. It has the ability to track the alterations in regulations around the globe. It identifies gaps in the customer information and provides KYC alerts of high-risk customers. In this way, digital identity solutions help in fighting back financial frauds and crimes.