FinCEN on AML/CFT Regime of UK and the Role AI-powered AML Solutions Play in It

Emily Daniel
Shufti Pro
Published in
4 min readJan 24, 2022

In the ABA/ABA FinCEN (Financial Crime Enforcement Network) conference 2019, the acting director Ken Blanco discussed the introduction of new divisions for transforming the current AML/CFT regimes in the UK. There were entire new divisions of enforcement and compliance along with global investigations to restrict financial crimes.

Until now the current Anti-Money Laundering (AML) landscape was struggling to gain some form of momentum. However, with the implementation of the recent Anti-Money Laundering Act 2020 and AML solutions with integration of AI and ML, hopefully, 2022 will be remembered as a year proven to be a turning point for financial institutes.

Market Overview

It is surprising to note that in the year 2020, banks from all over the world paid a total of $15.13 billion dollars and the US held the first rank in those AML fines, a sum of $11.11 billion was paid. AML solutions with robust screening are getting adopted worldwide. The global AML market in 2020 was $2.44 billion and by the end of 2026, the figures would reach almost $5.28 million USD.

The bureau of the US Department of the Treasury has given a deadline to all its stakeholders to submit their opinion on how the entire AML/CFT legislation can get much more frictionless and ultrafast. The deadline is 14th Feb 2022. This indicates the immediate practice of global AML solutions in the banking sector and other financial institutes.

Scope and Impact

There have been tons of cybercriminals and fraudsters who in the absence of systematic AML solutions with or without state sponsorships have carried out a plethora of ransomware attacks on different organisations. FinCEN claimed to receive 635 ransomware reports related to SARs in the year 2021.

The AML solutions address one of the most integral concerns of financial institutes, which is the balance between regulatory compliance and customer experience. Digital automated software screens clients against global financial watchlists and PEPs, constantly updated data warehouses of AML solutions ensure authenticity and the swift mechanism guarantees an above-average customer-experience.

Later but still FinCEN has come forward to realise their responsibility, ever since Bank Secrecy Act (BSA) and US Patriot Act, no impactful update took place as far as AML/CFT regimes were concerned, until now. The prevention of financial crimes is not a restricted concern, it has become a global one. Therefore, financial institutes must deploy AI-powered AML solutions in their verification mechanisms to stay in the competition.

AML solutions not only make the compliance efficient but effective as well. The number of alerts that lead to a SAR (Suspicious Activity Report) is the main concern of institutes. The transaction monitoring systems identify potential suspects in a heartbeat so the concerned institute can lead to an enhanced level of scrutiny. Cost and time are something that holds immense significance for financial institutions and clients respectively. AML solutions supplements both parties with an excess of it.

KYC/AML Compliance and Money Mules

Many individuals not being aware of the intensity of the situation, drag their feet into the mess by becoming money mules. Unknowingly countless people are serving terrorists, traffickers, and others criminals.

In 2020, Europol with the support of enforcement of 26 different countries was successful in recognising money mules approximately 18000 and a total of 1803 arrests were made. The integration of AML solutions and KYC services gets predestined in such matters. Along with the AI-powered checks and Enhanced Due Diligence (EDD), in transaction verification, the financial institution has to monitor clients who approach wealth management services, the locations where funds have been emanated from and are headed, and others. The risk rating system of KYC services along with the global AML solutions modernise the regulatory compliance and streamline the set of operations.

New Partnerships

The association between “financial institutes and other digital businesses” and “AML solutions and KYC services providers” is something that prevents organisations from being infiltrated by money launderers and criminals. The intuitive back-office of the global automated system with authentic evidentiary proofs of verification reduces the time frame between the processes of recognising a suspect and reporting the particular client to the concerned regulatory authority.

The privacy-enhancing technology in AML screening addresses the concern of data security as well. The regulatory framework in many years to come will serve financial institutes and other business enterprises well, with the practice of new innovative technologies with AML solutions.

Shufti Pro’s AML Screening

The database of AML solutions of Shufti Pro for global screening is updated at regular intervals of time, making less room for authentication errors. Financial institutions and Fintech organisations are losing fortunes due to money laundering, plus the accelerating costs spent on better compliance, all of this can be avoided once in for all by AML solutions. Trust, transparency, precision, everything is substantial except for the margin of errors. AML solutions of the organisation are aligned with objectives of modern and seamless compliance with the regulatory authorities.



Emily Daniel
Shufti Pro

Emily is a tech writer, with expertise in entrepreneurship, and business marketing. She has a knack for technology, & loves to dig out the latest trends in AI.