14 minutes
How evolving technology is reshaping the battle against financial crime
Financial regulators estimate that trillions of dollars are laundered globally each year, a trend that progressively threatens to exploit banks and credit unions as conduits for illicit funds. As criminal techniques become increasingly advanced, financial institutions face the challenge of keeping pace, especially with outdated Anti-Money Laundering (AML) technology that remains largely dependent on rules-based systems.
These traditional AML tools, while once effective, now exhibit their limitations as criminals exploit vulnerabilities within the existing systems. The emergence of more sophisticated money-laundering methods underscores the urgent need for newer, more resilient technology.
An equally pressing concern for financial institutions is managing overwhelming data volumes. Traditional AML solutions, even in smaller institutions, can monitor hundreds of thousands of transactions daily. The resultant surge in false positives—each requiring manual review before clearance— wastes valuable time and resources and further complicates what can be an already complex workflow.
Adding to these challenges is the growing scrutiny from U.S. financial regulators. Last year, the Financial Crimes Enforcement Network (FinCEN) reported a 50% increase in enforcement actions related to AML compliance compared to 2021, after a dip in actions the previous year. For financial institutions, the consequences of those actions can be expensive, regularly reaching into the hundreds of millions.
So, how can financial institutions effectively navigate this landscape, fraught with criminal pressures, escalating regulatory scrutiny and technological constraints? The answer may lie in new AML tools, powered by emerging technologies that employ artificial intelligence and application program interfaces.
Our latest whitepaper, "The Constant Battle to Prevent Money Laundering," explores this theory. It delves into emerging technologies that are reshaping the battle against money laundering, offering fresh insight on modern tools designed to combat this pervasive issue. This whitepaper also draws connections between intricate AML regulations and the relentless efforts of financial institutions to adhere to them.
Stay ahead of the curve in this ongoing battle against money laundering. Discover how the future of AML technology can equip you with the knowledge and tools needed to ensure your institution remains secure, compliant and efficient.
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