The year 2020 was a rollercoaster ride. Who would have predicted that the people around the world would literally be restricted to their homes and business operations would come to a halt? Moreover, 2020 gave the world a much-needed push into the digital transformation and the enhanced employment of technology to provide effective and efficient compliance solutions.

The impacts of CoronaVirus are still being felt well into this year. These impacts will keep on altering the world of monetary crime and compliance for an upcoming couple of years, instigating a paradigm shift in how compliance programs are adhered to and which technologies are used to increase the efficiency of the process. So, without further wait, let’s take a prospective look at AML compliance.

4 Most Probable Predictions for AML Compliance

Small, Multi-Skilled, and Flexible Compliance Teams

As many businesses have been negatively affected by the CoronaVirus pandemic, this has meant a decrease in revenue as well as increased uncertainty about revenue streams in the future. Understandably, this has resulted in budget cuts, especially in the AML compliance industry.

In upcoming years, businesses are expected to increasingly employ risk intelligence investigators. These will not be single-skill investigators as they will be suited for investigating in AML compliance field; ID theft and related frauds; business and customer screening, undertaking the KYC process, or a combination of these. This will also result in potential lay-offs as these multi-skilled investigators will make a lot of roles redundant.

Upward Technological Trend in AML Systems

It is not a prediction but an eventual reality that technology will transform the nature of compliance programs in the upcoming years, making it a flexible, more efficient, reliable, and robust machine. This will prove to be a competitive edge for businesses. But, one begs the question, why? Well, a compliance team that can adapt by swiftly onboarding customers, detecting only truly suspicious activities, and identifying any money laundering activity swiftly and accurately will decrease the hassle for legitimate users. This will mean enhanced customer experience and retention; increased loyalty levels, and increased market value. In these torrid times, this is important.

Customer onboarding process and AML compliance programs will be readily adhered to by digital verification processes which run on advanced technologies to contain the AML compliance risks. AML monitoring has mostly dealt with various operative hurdles but the AI-powered digital solutions are robust in addressing the changing needs and demands of the industry. This automation in the AML compliance field will help ameliorate the efficiency and accuracy of the verification process.

Regulatory Compliance Under one Roof

The topic of converging compliance-related issues under one bracket has been debated for quite a number of years. If a verification solution incorporates AML, KYC, KYB, GDPR, and other related compliance procedures within one solution then the multiple stages of money laundering would be managed concurrently. Regulatory Compliance Software can enable the businesses to perform anti-money laundering checks while being compliant with other regulatory measures as well. Moreover, it will enable the access and sharing of information, and that too with increased pace and effectiveness.

Adoption of Biometric Technologies

Requiring a user to physically visit a branch to submit sensitive documentation or paperwork has proven to be tedious, if not highly impractical over the last year. As a result, digital customer onboarding has become essential and subsequently, biometric technologies like facial recognition will surely experience increased employment of their application. Moreover, the upcoming years will witness an increased usage of NFC technology in digital identity verification solutions.