AML challenges and digital transformation: What 2024 holds for financial services
As we step into the second month of 2024, financial institutions (FIs) and regulated entities face a future that is anything but certain. Following a year marked by considerable upheaval, the question on everyone’s mind is how to best prepare for what lies ahead.
Fenergo, a financial compliance software developer, has released a report outlining its predictions for AML trends in 2024.
The financial services sector, in particular, has witnessed significant turbulence in the past year, fuelled by rapid technological advancements in areas such as artificial intelligence (AI), alongside hefty fines levied against digital payments providers and cryptocurrency ventures. This climate of heightened regulatory scrutiny is set to challenge regulated firms further as concerns over anti-money laundering (AML) and financial crime risks intensify.
The escalation of compliance obligations presents a formidable challenge for many organizations. This expansion stretches beyond their current capacity, making the prospect of scaling operations, venturing into new jurisdictions, or merely adapting to the geopolitical uncertainties and ensuing sanctions of 2024 an increasingly daunting task for FIs and regulated entities worldwide.
Fenergo’s research indicates that numerous banks continue to struggle with manual processes and inefficiencies, particularly in client onboarding and managing financial crime risk. The upcoming year will be pivotal in determining whether these obstacles can be surmounted through technological innovation.
In a recent report, specialists from Fenergo have put forward their forecasts for the coming year, offering insights into the anticipated developments over the next 12 months. This analysis delves into several key areas, including the impact of sanctions activity and ongoing geopolitical uncertainties on compliance frameworks.
Furthermore, it explores the potential shifts in regulatory focus, pondering whether attention will continue to gravitate towards FinTech or revert to traditional financial models. Another significant area of focus is the influence of technology and digital transformation journeys on compliance practices.
Read the story here.
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
