An accelerating regulatory environment
The notion of trust at the heart of AML-CFT
The complex international context (conflicts, geopolitical uncertainties, economic stakes, emergence of new risks), have promulgated the notion of trust as an indispensable element in the management of corporate finances and transactions. In addition, the strengthening of European legislation against money laundering and terrorist financing (AML-CFT)by aiming for greater harmonization of regulations to combat transnational terrorist financing circuits, has further hardened the legal arsenal for preventing and detecting illicit activities.
More stringent obligations
As a result, taxable persons must increasingly consolidate warning criteria, strengthen risk analysis, shed more light on reporting practices and provide early warning of fraud patterns or particular vulnerabilities. The customer identity verification (KYC) must also offer strong guarantees of reliability. Ever more complexity!
Difficult to maintain compliance
Qualified resources and costs
In today's world, companies have to juggle complex regulatory frameworks to avoid penalties. In this fast-paced and fluctuating legal environment, ensuring compliance is becoming increasingly difficult. This implies ever greater manual effort and time-consuming investment from qualified resources, which has a financial impact on companies. A study conducted by Forrester Consulting, for LexisNexis Risk Solutions in 2023 reveals that financial crime compliance costs have increased for 98% of financial institutions.
The QLB questionnaire
Not to mention managing paperwork like the QLB questionnaire, document questionnaire, a highly strategic document that needs to be completed with precision (transaction volumes and amounts, number of contacts, level of collection of supporting documents and asset declarations, number of internal staff affected by the system, etc.). AML-CFT... (see our other blog article - https://www.ap-solutions.io/lutte-contre-le-blanchiment-dargent-comment-faire-face-a-la-complexite-et-eliminer-les-taches-obligatoires-chronophages-du-qlb/). Failure to do so can result in considerable penalties.
RegTech revolutionizes compliance processes
Always be prepared
RegTech solutions (Regulatory technology) solutions solutions accelerate and secure regulatory compliance, enabling organizations to stay one step ahead of changing legislation and related market risks.
With advanced technological innovations
A range of technological solutions are available to companies, based on Artificial Intelligence, Big Data and the Cloud. Turnkey, Saas and full API, AP Solutions IO offers an automated automated compliance solution featuring tAugmented Intelligence technology for combat money laundering and terrorist financing, anti-corruption and export control. Ergonomic, it limits human action on time-consuming or low value-added tasks, while optimizing reporting processesand drastically reducinghandling of suspicions.
AI yes, but in Glassbox mode
Today, intelligenceis less and less intelligible. Its internal processes and the way they operate are totally abstruse to the user; conclusions or decisions are made by models without any explanation of their reasoning process. Black Box. Yet legislationAML-CFT requires traceability and explicability. So it's essential to provide a clear understanding of how AI works and the results obtained. AP Solutions IO offers intelligence engines in Glass mode Box for full traceability and explicability AML-CFT.
Facilitate filtering and customer knowledge
RegTech solutions will automate the collection of multi-source data (third-party supplier data, transactional data, regulatory databases, AML watch lists, etc.) and analyze it in real time to provide a comprehensive view of compliance risks, while pinpointing anomalies.
In other words, a RegTech solution will enable you to optimally manage your AML-CFT compliance and associated KYC by :
- Automating processes: AI and machine learning automate part of the KYC verification processes (identity verification etc.) streamlining customer onboarding processes and reducing associated time and costs
- Real-time flow analysis (up to 98% fewer false positives...)
- Optimized processing of alerts with qualified information
- Enabling high-quality audit trails and consolidated reporting
Conclusion
Offering agility and adaptability, RegTech solutions are redefining financial crime prevention and regulatory compliance AML-CFT. Automated solutions for real-time reporting, monitoring and risk assessment detect anomalies and flag suspicious activity. As such, they play a key role in enhancing companies' overall compliance and risk management strategies within a complex and ever-changing regulatory landscape. Activating due diligence with confidence.