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Illegally Obtained Money into Business Sector-Need AML Compliance

The digital medium is fastly taking over the global financial set up but before it reaches above the level, preventive measures are the demand of the hour. FinTech is a billions of dollars market where multiple stakeholders are involved in business growth. Money laundering is playing a poisonous role in the financial process.

All the financial institutions are closely intact and transactions are totally online. AML compliance mechanisms for secure data processing are fundamental as a safety measure. 

Bloomberg reveals that money laundering is swiftly taking over the South African banks as five major banking channels possess 89% of the total assets of the country. It gives the wrong impression about financial transparency. The business sector needs to revamp different sections connected to financing for financial protection. 

A Birds Eye View of KYB

KYB is the abbreviated form of know your business and it ensures the validity of the customer business details before providing complete access to financial services. The KYB process includes the business documents including business PAN card, income details, tax details and assets details etc. KYB procedures are to implement anti-money laundering regulations in every sector. 

Why is Money Laundering Becoming a Global Economic Threat?

As automation is expanding, global economic indicators are behaving in different ways. Financial institutions are taking into account the major factors behind illegal money transfers to protect the financial edifice. One of the major reasons is the lack of compliance in every industry.

The lack of AML solutions and compliance mechanisms triggers more financial crimes. Every industry like automobiles, real estate, fashion, pharmaceutical industry, travel or any other etc. uses financial sectors like banking channels etc for fraudulent activities. UNODC shares the statistics that around 2-5% of global GDP (around $2 trillion) are laundered illicitly.

In this way,  is impacting global economic indicators. Digital AML systems are effective to control illegal money transactions using secret channels. 

What is Digital Onboarding of Customers?

Customers choose financial channels to get registration for financial services and banking channels are playing a pivotal role in it. Digitization is swiftly reshaping the banking system where customer onboarding is required to pass through biometric procedures for the KYC process. KYB also provides a digital platform for verification of complete business details and KYT checks the financial transactions.

Tech-driven-based checks are applied for AML monitoring online. Digital verification is bringing more accuracy to the procedures and implementation is also user-friendly. 

Role of Digital Currency in Money Laundering

The fintech market is rapidly gaining boom and blockchain is taking it to the next level. Money laundering is still a menace to the world and the business sector is severely facing challenges which are unaddressed. Crypto enthusiasts and experts use digital crypto platforms to invest money and use illicit methods to transfer it to the required destination.

Cryptocurrency is later on converted into paper money. The lack of AML verifications for the blockchain market is facilitating financial crimes. Every business sector is rapidly converting to digital platforms for robust verfication. Blockchain is attracting the world and seems to take over the global economy in future. 

For detailed AML Compliance Demo

Artificial Intelligence & AML Screening 

Artificial intelligence is playing a key role in solving digital problems. Traditional methods are no longer lucrative to the business sector. For an instance, the real estate industry or automobile market is a heavy budgeting industry with billions of revenue per anum. Customer business needs to be verified for fraud prevention. AI-powered models are programmed on a custom basis and installed in the AML compliance software for KYC & KYB verifications.

AI-enabled techniques OCR & ICR algorithms are way more intelligent in screening the customer identity and business details etc. Fake business documents or financial invoice submissions are detected on the AI-enabled software within no time. AML solutions are necessary to implement properly for AML security guards in the financial domains. 

AML Solutions for Financial Sector

The AML solutions for the business industry vary from industry to industry. It primarily includes the formulation of regulations. Secondly, detect the fraud or suspicious attempt and charges equivalent to the offenses like sanctions or financial penalties, etc. 

Final Words

Anti-money laundering is the eventual target of global regulatory authorities. The financial world is suffering more out of it. Better AML compliance mechanisms can help to implement actionable AML solutions to get rid of financial scams. It is the need of the hour to protect financial data using digital AML solutions to combat money laundering on different platforms. 


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