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With Big Data and Analytics creating a furore in the tech industry, the enthusiasm has spilled over into Banking and Financial Services too. And over time, knowingly or unknowingly, regulatory authorities have also put their faith in the sanctity of data.

As the war against financial crimes comes to a head, organizations are turning to technology to weed out risk and mitigate non-compliance. However, through all these changes, one thing has remained constant – KYC is still the most trusted tool in the AML arsenal.

KYC rules

Financial institutions hire countless professionals every year, to collate and process KYC information for all their customers. While a risk-based approach is also essential, it will only be as good as the foundation it is built on.

Since KYC processes have evolved to include an array of sources including customer supplied information, LexisNexis, and other databases, banks now have a holistic perspective of their clients. Furthermore, OFAC and PEP screening ensure that organizations can keep an eye on the nature of their customers’ business in a global context.

The downside to all of this, however, is that as time passes, there will only be more data and a greater burden of responsibility on financial institutions to account for this rapid increase. And instead of waiting for such a time when resources are overworked, and compliance becomes a point of contention, organizations should invest in the right technologies right now, to stay one step ahead.

What’s the right fit?

There is always something new in the tech space, and this can make things confusing for most. Should you choose the shiny AI-led solution or do budget constraints demand a conservative automated system? We’d venture to say neither.

AML is in a space that currently calls for Machine Learning, but doesn’t necessarily need intelligence. The best solution must be able to understand the changes in a dynamic regulatory environment, and offer insights to AML Analysts in order to drive their investigations and processes.

Want to talk more about how to mitigate risk and combat money laundering? Allsec XQ hosts Preet Bharara, former US Attorney, Southern District of New York on October 11, in a high-spirited conversation about topics impacting the BFS industry, that will act as a stepping stone towards global collaboration against financial crime. To know more, visit


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