Generative AI & Fraud, KYB Automation, Fintech Challenges, Continuous KYC Monitoring, and AML Innovations
Welcome to the Compliance Hero Digest!
?? Edition #67
In the ever-evolving landscape of Anti-Money Laundering (AML) compliance, staying informed is not just beneficial - it’s essential. As your trusted resource, the Compliance Hero Digest is dedicated to bringing you the latest news, cutting-edge trends, and in-depth analysis from the AML compliance sphere.
Join us for a deep dive into the evolving world of fraud with PJ Rohall, co-creator of About Fraud and Fraud Fight Club.
In this episode, we explore how Generative AI is reshaping the fraud landscape, highlighting key differences between US and European fraud challenges. PJ shares expert insights into the intersection of fraud and AML, revealing new emerging scams to watch out for.
We also delve into the surprising connection between mental health and fraudulent behaviour, offering a fresh perspective on how psychological factors influence crime.
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The KYB (Know Your Business) process refers to the procedures and checks businesses undertake to verify their customers' or business partners' identity and legitimacy.
By understanding the KYB process, businesses can ensure they are dealing with reputable entities, thereby fortifying their security and minimising the chances of fraud or illegal activities.
In this article, we look at a few of the many benefits of KYB automation ??
?? ????????-????????????: Streamlines tasks and allows focus on core operations
?? ???????????????? ????????????????: Reduces human errors
?? ??????????????????????: Supports business growth without compromising quality
?? ???????????????????? ????????????????????: Minimises risks of penalties and legal issues
In his latest article with TechFinitive.com, Andrew Doyle, CEO of NorthRow, discusses how fintechs like Monzo Bank and Revolut are reshaping finance while addressing the rising challenges of money laundering and financial crime. ??
"Fintechs have brought about remarkable changes to financial services. However, they have also introduced new risks, particularly in money laundering and financial crime".
While innovation drives success, fintechs must comply with strict AML regulations. The solution? Embracing tech-powered tools to streamline compliance, accelerate onboarding, and detect suspicious activities in real-time. ????
As fintechs continue to transform financial services, collaboration with regulators will be essential to building a safer, more transparent financial ecosystem.
KYC (Know Your Customer) and KYB (Know Your Business) are not one-hit processes for simply onboarding your customers at the outset of your relationship.
The tightening of regulations, particularly since 5MLD came into force, requires regulated entities to have a much deeper and longer-term understanding of their customers, and to keep that understanding up to date throughout the customer lifecycle.?
Achieving this level of due diligence goes by a variety of names; Perpetual KYC/KYB, Continuous KYC/KYB monitoring, Event-driven KYC/KYB, and Dynamic KYC, to name but a few.
Areas covered:
??? Barriers and benefits of a proactive approach to continuous KYC/KYB
??♂? What’s new in CDD?
?? The future of AML techniques
Thank you for joining us in this edition of the Compliance Hero Digest. Until next time, keep up the great work, and continue to be a hero in the fight against financial crime. ??