How KYC and AML innovations are shaping the future of FinTech

On 14 March 2023, FullCircl led a significant assembly of the UK’s premier financial crime and compliance authorities to address strategies in AML, compliance, and anti-fraud that are setting financial institutions apart in the competitive arena. The discussion was centered around the subject of compliance and how to stay up to date with the ever-growing regulatory framework of the EU and UK. Stephen Frame, COO and MLRO at Caxton, stated that 2024 would be unprecedented in terms of regulatory evolution. With all the regulations on the horizon, Financial Institutions are bracing for a transformative period. The 2023–2024 era has also seen the implementation of pivotal acts like the Economic Crime and Corporate Transparency Act, the Financial Services and Markets Act, as well as updates to existing directives.

The consensus of the panel was that compliance is no longer a perfunctory task but is a core aspect of Financial Institution operations. This transition requires technology driven compliance methodologies, like AI-driven KYC processes. This is necessary to keep pace with regulatory changes while outmaneuvering sophisticated financial crimes. The panel agrees that manual KYC is obsolete. The best practice for KYC today is through data analytics, digital identity verification, and continuous KYC/B to mitigate financial crime risks efficiently and enhance customer experiences through streamlined onboarding processes.

https://fintech.global/2024/03/26/how-kyc-and-aml-innovations-are-shaping-the-future-of-fintech/