AML and KYC in E-wallet Market
The shift away from physical cash as the primary mode of payment is not a regional occurrence – it is a global trend that is gaining momentum in these few years. A growing number of consumers worldwide are choosing to use digital payment options such as smartwatches, contactless cards, and e-wallets instead of relying on traditional paper-based currency.
According to a recent study conducted by Juniper Research, the number of global digital wallet users is expected to rise significantly over the next few years. By 2026, the total number of users is anticipated to exceed 5.2 billion, indicating a growth rate of more than 53% from the 3.4 billion users reported in 2022.
These figures clearly highlight a growing trend towards the use of digital wallets and mobile money, demonstrating the escalating importance of providing secure and efficient mobile payment solutions for businesses and consumers alike to avoid financial threats. In order to combat financial crime, numerous regulations and directives have introduced stricter compliance requirements globally.
Organizations are now under significant pressure to rethink their Know Your Customer (KYC) approach and increase their risk effectiveness solutions to identify and prevent potentially fraudulent activities while complying with anti-money laundering (AML) regulations.
What Is Know Your Customer (KYC) and How Is It Part of AML?
Know Your Customer (KYC) refers to the process in which an organization verifies the identity of its customers and assesses potential risks that they may pose to the business. Although the terms AML and KYC are often used interchangeably, KYC is actually a subset of the larger AML framework.
KYC involves various procedures intended to provide a complete understanding of clients, confirm their identities, reduce risk, and detect possible illicit behavior. These procedures contribute to the overarching goal of anti money laundering solutions, which are to prevent and combat financial crimes such as money laundering and fraud.
AML and KYC: Addressing Key Challenges for 2023 and Beyond
In the present digital age, there has been a tremendous increase in data, digital transactions, and demand for rapid access to digital services. Unfortunately, this has also led to a significant rise in financial crime, such as money laundering. As a result, AML has become a critical concern for governments and financial institutions worldwide, with money launderers utilizing more sophisticated techniques to evade detection.
Traditional and legacy transaction monitoring systems, which are outdated, are incapable of keeping up with the rapid pace and volume of transactions in this dynamic environment. There are various challenges, including manual processes, limited traceability, slow response time, compliance overheads, and lack of real-time monitoring.
In this regard, next generation AML solutions with cutting-edge technologies like AI and machine learning come into the play. By automating manual processes such as data consumption and analysis, these technologies enable faster and earlier detection and scoring of fraudulent events.
On the other hand, AML processes are also improvised by regulatory technology (Reg Tech) which utilizes data as foundation to improve the effectiveness of AML compliance. By managing data effectively, enterprises are able to mitigate the risk of false positives and false negatives, resulting in better utilization of time and resources and enhancing the overall effectiveness of their AML compliance endeavors.
Powering up with AI and Machine Learning for Anti-Money Laundering (AML) solution
Neural Technologies offers a comprehensive Anti-Money Laundering (AML) solution that addresses the evolving challenges of AML compliance in the region. Our solution leverages AI machine learning predictive analysis and provides end-to-end customer journey risk assessment from initial onboarding to AML regulatory compliance and real-time reporting.
Benefits of Neural Technologies’ Sophisticated AML Solutions
Our AML Solutions offer a wide range of advantages for enterprises to secure their operation processes, including:
- Rapid Onboarding Process with Automated KYC and AML Risk Assessment
- Accurate Detection Rate and Minimal False Positive
- Large Capacity of Data Processing
- Flexible and Customizable Configuration
Features of Neural Technologies’ AML Solutions
Neural Technologies’ AML Solutions are equipped with sophisticated features to meet the evolving needs of the enterprises:
- Know Your Customer (KYC)
- Enhanced Due Diligence (EDD) requirements
- Workflow Automation Integration
- AML Anomaly Analysis
- Transaction Profiling & Monitoring
- Real-Time Dashboard and Case Management