What is the future of KYC?

The future of KYC: Adapting to new challenges in the banking sector

Fenergo’s recent webinar, ‘KYC, AML, & Onboarding in 2023 – Were Lessons Learned or Do Old Habits Die Hard?’, brought together compliance experts to delve into findings from research on over 1100 executives from global banks. This study, encapsulated in the report ‘KYC in 2023’, reveals a significant 17% rise in the average cost of KYC (Know Your Customer) reviews, accompanied by an 11-day increase in their duration over the past year.

Read the full story here.

Research highlight

Global AML & FinCrime acquisitions drop to lowest levels in past five years during 2023

Key AML & FinCrime acquisitions stats in 2023:

· Global AML & FinCrime acquisitions activity reached 48 in total for 2023, a 33% reduction from 2022

· Global AML & FinCrime acquisitions have fallen 41% from their peak in 2021

· The USA had the most AML & FinCrime companies acquired in 2023 at 21 acquisitions, a 43% share of total acquisitions

In 2023, the global AML & FinCrime acquisition landscape witnessed a notable decline, with a total of 48 acquisitions reported, marking a 33% decrease compared to the previous year. Global acquisitions saw a 29% drop in 2023 from the previous year, indicating that AML & FinCrime were hit slightly harder than other sectors. This drop in 2023, marks a continued shift in the industry, as AML and FinCrime acquisitions have now fallen by 41% from their peak in 2021.

Berbix, an ID verification and Fraud capture company, was the largest AML & FinCrime company acquired in 2023 after they were acquired by Socure for $70m. Socure stated this integration of technologies is already complete and has allowed Socure to accelerate its innovation roadmap by at least 18 months. The team also announced the launch of Predictive Document Verification (DocV) 3.0, which it claims far outpaces every market competitor in accuracy, speed, user experience, and fraud capture. For its customers, this radical accuracy and speed means an immediate lift in consumer acquisition and revenue, and a material reduction in fraud losses and related operational spend.

RegTech news

• Navigating the Corporate Transparency Act: A guide to the new US Beneficial Ownership Rules - The Corporate Transparency Act (CTA) ushered in a significant shift in beneficial ownership reporting requirements starting from January 1, 2024. This change is more than a mere procedural update; it’s a critical pivot in the financial regulatory landscape that demands attention and action. Read the full story here.
• Understanding the impact of EU’s AI Act on financial services - The EU made a significant move towards regulating artificial intelligence (AI) by tentatively agreeing on the terms of the AI Act.?Read the full story here.
• Adapting to change: How the UK’s latest money laundering amendments impact PEPs - On January 10, 2024, a pivotal shift in the UK’s regulatory framework will unfold as the Money Laundering and Terrorist Financing (Amendment) Regulations 2023 come into effect. Read the full story here.

Regulation news

• FCA launches sustainability group aiming to revolutionise financial advice -?The FCA is spearheading an initiative by establishing an industry-led working group focused on bolstering capabilities in sustainable finance. Read the full story here.
• BIS unveils Project Hertha program to help secure private real-time payments - In the evolving FinTech landscape, payments system protection against financial crime is key, especially when it involves maintaining user privacy. Read the full story here.
• Australia’s Albanese government unveils climate risk disclosure framework - The Albanese Government’s announcement of significant reforms in climate reporting marks a transformative step for Australia’s financial system. Read the full story here.

RegTech Deal news

• Encompass acquires CoorpID and Blacksmith from ING - Encompass Corporation has recently expanded its capabilities by acquiring two significant entities from ING: CoorpID and Blacksmith KYC. Read the full story here.
• Edgewater Equity Partners acquires Ascent to boost AI-driven compliance - Ascent Technologies?has been acquired by Edgewater Equity Partners, a distinguished private equity firm based in Boston. Read the full story here.
• MUWE becomes new Flagright customer to bolster payment security in LatAm - Flagright has recently announced its latest customer, MUWE, a prominent Mexican payment integration company. Read the full story here.

CyberTech news

• Oleria rakes in $33m for autonomous identity security advancements - Oleria, an adaptive and autonomous identity security firm, has announced the successful closure of a substantial $33.1m Series A funding round. Read the full story here.
• Cybersecurity innovator Vicarius clinches $30m in Series B for AI growth - Vicarius, a pioneer in the cybersecurity sector, has secured a substantial $30m in Series B funding. Read the full story here.
• Kusari secures $8m boost to fortify software supply chain security - Kusari, a startup in the software supply chain security sector, has recently announced a significant boost in funding. Read the full story here.

Other RegTech news

• Serving up sustainability: Transforming reporting with ESRS and GRI standards - The GRI and the European Financial Reporting Advisory Group (EFRAG) are making strides in aligning the ESRS with GRI Standards. Read the full story here.
• The 4 pillars of future financial crime compliance - In the ever-changing world of risk management, where the challenges are formidable and constantly evolving, the role of risk executives and their teams is more vital than ever. The cornerstone of this ecosystem, financial crimes compliance, requires not just vigilance but also a forward-thinking approach to innovation. Read the full story here.
• Assessing the global ripple effect of the German Supply Chain Due Diligence Act - As the first anniversary of the German Supply Chain Due Diligence (LkSG) Act comes round, Moody’s Analytics recently considered the substantial shifts and impacts this legislation has introduced. Read the full story here.