Enhancing AML compliance: Evolving risks demand heightened scrutiny, integrated data solutionsThree key trends have emerged in the financial crime compliance space, driving a need for closer integration between bank divisions and the use of technologies such as AI data processing and visualisation tools to identify money laundering.
“Sanctions circumvention may take place through new shell companies, or through diverting trades through other countries that are applying less rigid sanctions regimes. To understand sanctions evasion, FIs need to delve deeper into the data, encompassing all the KYC information collected during the onboarding process, including the various company structures, parent companies and ultimate beneficial owners.
Another key trend is the use of crypto-currency in money laundering, he says. “In the US, about 10% of consumers hold or trade with crypto-currencies. In many countries in Asia, Africa and Latin America, the adoption of crypto-currencies is even higher.
Dr Hetzler emphasises the necessity for departments to collaborate and to connect the dots to uncover networks and suspicious activities to combat the ever increasing complexity of international money laundering. Importantly, banks need rigorous KYC procedures to fully understand their clients, what their intentions are, who the ultimate beneficial owners are and which countries they reside in, he says. They must also monitor transaction patterns.