AML compliance encompasses a range of international and national regulations aimed at preventing criminals from disguising illegal funds as legitimate income. According to AIPrise, ensuring compliance is crucial for detecting and reporting suspicious activities, which may involve money laundering, terrorism financing, or other financial crimes, especially within the financial services sector. The AML compliance framework guides …

With the challenges of financial crime increasing with an ever-growing digital presence for firms and threat actors alike, there is a growing desire in the industry for more real-time management of such threats. What are the challenges and opportunities for such technologies? According to Holly Sais Philippi, CEO of RegTech firm Alessa, real-time AML compliance is …

From traditional methods to advanced AI technologies, anti-money laundering (AML) compliance has experienced significant transformation. According to Consilient, traditional approaches, reliant on (heuristic) rules-based transaction monitoring, often generate a plethora of false positives by flagging legitimate transactions that simply meet certain predefined criteria, such as transfers exceeding or are close to $10,000. These systems struggle with …

Enhanced Due Diligence (EDD) represents an advanced level of scrutiny, serving as a crucial component beyond basic KYC checks. According to AIPrise, this process meticulously examines high-risk customers or significant transactions, delving into the source of wealth, business activities, and connections to high-risk jurisdictions. Unlike standard Customer Due Diligence (CDD), which only captures basic information, EDD …

In today’s rapidly evolving FinTech landscape, the capacity to effectively manage a growing volume of financial transactions is paramount, particularly with the rise in digital transactions. According to Napier AI, in 2022 alone, digital transaction volume soared by 22% to reach $2.2 trillion USD, with an increasing number transacted in small amounts or via new methods. …