item_4_The_impact_of_New_Technologies-on_the_KYC-and-AML-processes.en.pdf

Here are the key points summarized:

Compliance is constantly evolving due to complex financial crime practices, ever-changing regulation, and the need for expertise, focus, and investment.

The banking industry faces limitations using traditional technologies, resulting in penalties from regulators. New technologies provide opportunities to address these limitations, including improved AML/CFT effectiveness, better risk management, cost savings, accuracy of results, auditability, and better HR management.

However, there are also challenges to adopting new technologies, such as regulatory issues, data privacy concerns, data quality, technology complexity, cost, and risk aversion.

The industry is investing at a strong pace, with a year-on-year increase of 18%.

New technologies have various use cases in the KYC and AML/CTF space, including automation, machine learning, natural language processing, and blockchain.

The impact of new technologies on AML operations includes expected transaction monitoring average operational cost reduction higher than 30%. Key takeaways for implementing new technologies include a complex financial industry context, strengthening ties with regulators, protection from sophisticated financial crime practices, ensuring scalability, and investing in people, processes, and data-oriented organizations.