In the rapidly evolving financial landscape, the sophistication of money laundering schemes has reached new heights.
RelyComply, an end-to-end platform for anti-money laundering, recently delved into some advanced KYB techniques AML professionals should know about.
Anti-Money Laundering (AML) professionals are consistently challenged to stay ahead of criminals who constantly adapt their methods to exploit weaknesses in compliance systems, it said. Traditional Know Your Business (KYB) procedures, though foundational, no longer suffice in uncovering the complex web of hidden risks crafted by modern financial criminals.
Exploring the realm of advanced KYB techniques, RelyComply highlights how technology and innovative methods can significantly enhance risk detection and strengthen AML compliance.
RelyComply, a leading provider of AI-driven AML compliance solutions and recognised in prestigious lists like the FinCrime Tech50, RegTech100, and AIFinTech100 for 2024, plays a pivotal role in addressing these challenges for enterprise-level organisations.
The traditional KYB methods have their limitations. They often rely on static data, missing dynamic changes in business risks, and their scope might not capture complex ownership structures or international connections. Manual processes can lead to inconsistencies and lengthy onboarding times, while siloed information results in incomplete risk profiles. These gaps provide criminals the opportunities to conceal their activities effectively.
RelyComply’s comprehensive, AI-based platform delivers dynamic, extensive, and automated KYB processes that integrate seamlessly with existing systems, overcoming these limitations.
One way to stay ahead is through advanced data collection and analysis techniques. Advanced techniques such as social media analysis, adverse media screening, and deep web searches allow AML professionals to build a more comprehensive risk profile. These processes uncover undisclosed business relationships, reputational risks, and hidden connections and activities that traditional searches might miss.
Identifying the true beneficiaries of a business through multi-layered ownership analysis, global database cross-referencing, and continuous checks on ownership changes is crucial for effective risk assessment. RelyComply’s platform offers visualization tools for mapping complex ownership structures and automatically cross-referencing findings with global risk databases.
The advanced KYB also extends to transaction pattern analysis and cross-border risk assessment. AI-driven transaction monitoring and network analysis can reveal connections between seemingly unrelated entities and potential shell company operations. Real-time risk assessments and event-based enhanced due diligence are also part of RelyComply’s offerings, updating risk scores as new information becomes available and automatically triggering enhanced due diligence when needed.
Implementing these advanced techniques, however, comes with its set of challenges, such as ensuring data privacy compliance and managing false positives. RelyComply is designed with these considerations in mind, continually refining AI models to minimize false alarms and ensuring compliance with global standards like GDPR.
In conclusion, as financial crimes become more complex, AML professionals must evolve their KYB techniques. By leveraging RelyComply’s advanced capabilities, businesses can significantly enhance their risk detection abilities, streamline compliance processes, and stay ahead of emerging financial crime threats.
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