“Financial institutions have been hit with $10.4 billion in global fines and penalties related to Anti-money laundering (AML), know your customer (KYC), data privacy, and MiFID (Markets in Financial Instruments Directive) regulations in 2020” notes ComplianceWeek. Banks, large multinational corporations, and companies conducting high-risk activities such as Crypto/Asset Funds and Fintech subsidiaries are being fined at record levels for not complying with customer due diligence requirements and the trend just seems to be increasing.
Anti-money laundering regulations become more stringent every year as do the associated fines. On January 1, 2021, Congress passed the National Defense Authorization Act for Fiscal Year 2021 (the NDAA), which includes the most substantial and sweeping improvements surrounding AML legislation. This omnibus bill includes amendments to the USA Patriot Act which address a wide range of gaps in previous legislation. The US’ AML Act 2020 (AMLA) was designed to address changes in the technological landscape and the lack of motivation (monetary or otherwise) for whistleblowers to share AML information with authorities.
Money laundering is a centuries-old crime that continues to represent a serious danger to governments, financial institutions, and companies.
Credit unions, financial institutions, banks, and businesses must all implement an Anti-Money Laundering Compliance Program as a result.
AML Compliance Programs assist firms in keeping track of transactions and alerting authorities to any illegal financial activities.
This can be accomplished through learning about money laundering rules and regulations, such as the Bank Secrecy Act of 1970 in the United States and the European Union's Fourth Money Laundering Directive, which was implemented in 2017.Any failure to comply these laws due to a lack of monitoring is a major issue for financial institutions.
They face huge fines if they don't follow the rules.
Several sophisticated AML compliance software solutions have begun to develop as a method of combating this challenge.AML Compliance Solutions provide effective, dynamic, scalable and adaptive compliance.What is an Anti-Money Laundering (AML) Compliance Program?Any financial institution or corporation's Anti-Money Laundering Compliance Program refers to all of their efforts and measures done to stay in compliance with regulatory AML regulations in their legislative environment (state, national, and international AML laws).
FinTech is the latest trending word in the financial industry, but the truth is that FinTechs have been around for a long time.
The sudden surge in awareness about FinTechs in the financial industry can be credited to the onset of digital transformation in the industry.
Since the global COVID-19 pandemic, the need for digital transformation in the industry has been in overdrive.
With this overwhelming need for digital financial services comes a need for technologies that can enhance and optimize the current workflow of the financial industry.
The word FinTech itself is a culmination of two words “Financial and Technologies.” The primary aim of FinTech companies is to keep developing innovative solutions for banks, credit unions, crypto exchanges, lenders, and any other business operating in the financial industry.
By embracing FinTechs, financial institutions can streamline the customer onboarding process by using online KYC verification software or reduce the flow of financial fraud (money laundering, account takeover fraud, ID theft), by leveraging online document verification software.Source URL: https://ukguestblog.com/top-10-things-to-know-about-fintechs-fintech-guide/
Money laundering can encourage illegal activities and must be stopped urgently.
Sentrient helps to identify and cease potential money laundering activities, ranging from suspicious customer behaviour, international transactions, larger than normal transactions and suspicious transactions.
