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FinTech Paves way for a Stronger AML Program

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The FinTECH World

FinTECH is not a new term in the rapidly growing industry, that is taking the world by storm. Heading in the direction that it is currently, is all set to cross the 40 billion mark by 2020, according to industry insights!

Rapid advancements in financial technology, have spurred a new direction of business processes and transaction undertakings. Redefining how the society at large intereacts and carries out payments in a manner that are not only safe but also ‘All Clear’ from global regulatory AML practices.

You might be wondering. How FinTech plays a part for an effective AML program, and safeguarding practices and standards?

Importance of AI in FinTECH

Over the course of the last decade, the finance industry has seen rapid growth in customer on boardings and a tightening regulatory environment. As technology improved, so did the threat associated with money laundering from all the influx of people. Legacy financial service providers were quick to realise that, the industry is changing and out date practices were no longer effective in curtailing money laundering through their services. The answer? – Incorporate Artificial Intelligence in financial technology solutions.

Artificial Intelligence caters the industry with certain factors that cannot could not have been previously addressed through dated practices and cumbersome manual processes.

  • Scalable Application
  • Rule Base Configurability
  • Automation led Faster Repetitive Processes
  • Consistive Operation Standards & Result Accuracy

AML Mandation | High Risk Sectors

As regulatory environments tightened to prevent money laundering to take place, the requirement for tighter AML regulations arose exponentially. To the point, that they are now in a compulsory state of implementation, through dedicated ‘Know Your Customer’ procedures mandated by regulatory authorities. The absence of such implementations could lead to financial repercussions for a business, in the eyes of global regulatory authorities. Since the environment surrounding financial service is considered a very high risk sector, AML does not just not constitute written policies but now seeks a ‘Risk & Rule Based’ approach.

Such a ‘Risk & Rule Based’ approach can only be employed through a dedicated AML service, that runs off an effective AI solution at its core. Not only does a system with AI functionality provide better services but also address the factors listed above with great ease and accountability.    

The RegTECH AML of Today

Those hybrid solutions catered today, are RegTech solutions that service the FinTech industry and help businesses to comply to global regulatory directives.

Scalable kyc services allow for the AML service to be tailored according to client expectations and business requirements. There is no ‘one solution fits all’, where a KYC software today needs to exhibit some sort of configurability. This allows a solution to be configurable against various risk based approaches that a regulation might bring, from each of its iteration.

A FinTech solution functions to automate processes and speed up repetitive processes, in order to provide a consistency of results and it’s very accuracy.


Combating terrorist funding, money laundering, cryptocurrency tax crimes and financial crimes is needed now more than ever. Inclusion of a hybrid of artificial and human intelligence in the system has allowed businesses and financial institutions to secure their assets, increase revenues and hence, profits, by employing appropriate methods of user verification. To truly comply to ‘Know Your Customer’ (KYC) policies, identity verification and screening against AML and criminal watch lists, databases and PEPs lists, is a must.

Rest assured, RegTech and FinTech are here to stay, holding such a profound effect on the global society from a regulatory and functional point of view. Both these aspects will continue to evolve and improve, while complementing one another to establish a uniform and strengthened AML solution for a greater AML risk based program.

Stuart Clock

Stuart Clock is a web entrepreneur and he loves to write about tech, gadgets and latest trending news. He explores his words in the article with his tremendous skill. Apart from blogging, he is doing journalism and working hard as an editor in some tech/world news sites. His ambition to be a famous blogger in the web world. Apart from his business he loves to do travelling, playing cricket and snooker is his favourite game.

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