In a recent article, The Banker examined the disconnect between efficiency of anti-money laundering (AML) efforts and the sophisticated methods of financial criminals.
They write: "Even with recent successful operations such as First Light 2022, many within the banking and financial services sector see KYC and AML compliance, at best, as a box-ticking exercise and, at worse, a colossal waste of time and money that does very little to stop financial crime at its source or look at the widespread global issues fuelling fraud in any systematic way."
But while legacy KYC and AML tools are falling behind, we believe there are plenty of reasons to be optimistic.
Turning the tables on criminals
Lucinity always believed that KYC and AML, while not without their shortcomings, have enormous potential locked away behind a lack of productivity for those fighting financial crime. As VP of Product Theresa Bercich explains:
The preconditions for banks to collaborate are difficult to meet, but not impossible. Secure and innovative ways for banks to collaborate can be fostered through a central compliance hub, where pseudo-anonymised data can be used to complete the bank’s picture of the customer, without knowing where it is coming from.
Creating solutions that unlock wasted productivity potential and bring AML technology into the 21st century is key to shielding financial institutions. Leveraging best-in-class technology is a crucial part of that effort, but only if it's aimed at creating meaningful solutions, not just providing convenient ways to treat AML as a checkbox exercise.