AML and KYC Compliance: Current Trends, Challenges, and Market Potential

AML and KYC Compliance: Current Trends, Challenges, and Market Potential

Anti Money Laundering (AML)Know Your Customer (KYC)hefty fines incurred by some of the world’s largest banks in 2021

Although significant progress has been made, the current market is still plagued with several challenges that give rise to concerns. Notwithstanding, there remain significant opportunities and market potential to help financial institutions remain on the good side of the law and thwart cybercrimes while regtech businesses grow from providing the right software infrastructure.

Current Challenges and Trends to Keep an Eye Out On

Now, let's take a look at two major trends to keep an eye out for

Know Your Employees

Beyond knowing your customer, it is important that you know your employees to further mitigate risks. Businesses often turn a blind eye to employees as a weak link to be exploited, and now that remote working is a thing of the past, the risk is even further aggravated.

Since cyber security protocols are variable when employees are working from home offices, sensitive customer data can be more easily accessed by criminals.

upper-level executives are falling victims to spear phishing

To curtail this, businesses need to thoroughly vet their employees as well as improve their cybersecurity training. This is the best way to minimize risks. Know Your Employees is one of the paramount issues raised by data verification companies like Youverify in Africa.

Technological Configurability is Essential

Another common trend posing a problem for the compliance landscape is the current degree of technological configurability. Each financial institution is different, with varying needs and degrees of AML checks. Because technology is used to conduct customer due diligence, personal configuability is essential for addressing the differences in business requirements.

Current rigid technology stacks certainly don't do businesses any good and are one of the major sources of frustrating roadblocks in AML and KYC compliance workflows. Adaptable technology, somewhat seen in vForms, one of Youverify’s products, is preferred as it helps institutions configure compliance workflow according to their specific AML needs.

The Future Market Potential of the KYC and AML Landscape

We can all agree on the fact that financial crimes are not going anywhere anytime soon. Therefore, it is left to institutions to arm themselves with the right technology and internal processes. This is to enable them to monitor and thwart money laundering crimes as much as possible.

The demand for good technology leaves a huge market potential for regtech companies, which are rising to the challenge through revolutionary identity verification and transaction monitoring technology. Regardless, compliance technology is still a long way from perfection and data verification companies like Youverify are at the forefront of the charge.

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