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Adopting Tech for AML – No Excuses for Procrastination

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In the worldwide battle against financial crime, the stakes are high. Money laundering alone, according to the United Nations Office on Drugs and Crime, amounts to a staggering $800 billion to $2 trillion annually. That’s 2% to 5% of the world’s GDP, a sum large enough to dwarf the budgets of several countries.

Financial institutions face this challenge every day. Increasingly they are expected to combat money laundering in all its three key phases:

  • Placement (moving the funds from direct association with the crime),
  • Layering (disguising the trail to foil pursuit);
  • Integration (making the money available to the criminal from what seem to be legitimate sources).

Ensuring protection against these multi-layered hazards, and terrorism financing, to which it may be linked, requires consistently effective compliance procedures, vigilance, and sophisticated technology.

Yet, despite the ever-growing threat and regulatory tightening, some institutions remain hesitant to embrace the automated solutions available.

What’s blocking the investment?

Why the reluctance? Often, it boils down to three understandable but  misplaced concerns: cost, integration complexity, and the comfort of the familiar.

The fear of hefty price points attached to new technology is understandable, especially when dealing with outdated infrastructure. However, the reality is that modern solutions have become remarkably cost-effective. Consider the human resource costs associated with manual compliance work. Expanding teams, training, and ongoing operational expenses often far outweigh the investment in robust automation. Today’s solutions, like Compli from Essiell Compli, offer comprehensive packages that are scalable and tailored to individual needs, making them accessible to institutions of all sizes.

Then there’s the worry of disruptive integrations interfering with existing workflows. Thankfully, this is no longer a major hurdle. Leading developers, like Essiell Compli, prioritize seamless integration. Their cloud-based solutions sync seamlessly with existing systems to minimize disruption and maximize efficiency.

Finally, there’s the human factor. Change can be intimidating, and sticking with what’s familiar, even if it’s less effective, offers a sense of comfort. But clinging to outdated methods in the face of evolving threats is never a good idea. Only with continuous adaptation, powered by advanced technology, which itself is flexible and responsive, can keep institutions ahead of the curve.

Know Your Enemy, Know Your Friends, Secure Your Future

Take Compli, for example. This cutting-edge platform integrates know-your-customer (KYC) tools with intelligent transaction monitoring. Its global reach and flexible customization make it a powerful weapon in the fight against financial crime. Imagine the peace of mind in knowing that every transaction is scrutinized against real-time risk assessments, conducted efficiently, accurately and with impressive consistency. It’s designed specifically to help worldwide brands streamline compliance processes, maximise efficiency, and minimise risk.

Beyond Compliance: Taking a Stand Against Financial Crime

The choice is clear: procrastination in the face of financial crime is a luxury no institution can afford. Embracing automation is no longer a question of “if,” but “when.” Solutions like Compli not only safeguard your business, but also empower you to focus on what you do best: serving your customers with confidence and security.

By stepping into the future of compliance, financial institutions not only protect themselves and their customers, but also play a vital role in safeguarding the global financial system. The time for hesitation is over; the time for action isn’t for some unspecified tomorrow. It’s today.

By Declan Morton, staff writer at Compli and Essiell Ltd.


Sources for discussion include:

Q&A: Optimising AML compliance with technology, Financier Worldwide, February 2024

United Nations Office on Drugs and Crime, Money Laundering.

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