KYC — Know Your Customer and AML — Anti Money Laundering in LATAM

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Financially Speaking…

Traditional technology used in Anti-Money Laundering (AML) operations is proving inadequate in responding to modern-day challenges. Financial Institutions (FIs) around the globe are exploring new technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to improve efficiency and effectiveness of AML programs.

Data forms the foundation in AML and will be even more critical for applying AI and ML techniques. But data has been underutilized because FIs struggle with common data management challenges that are exacerbated by growing volume and speed of transactions. Regulatory scrutiny on model risk management is forcing them to rethink their approach to data management. Many are taking this opportunity to usher in changes that break down data silos and simplify data architecture.

Risk scoring can become more effective and responsive to changes in a client’s profile or actions that will enable continuous monitoring of risk across a client’s lifecycle. Operationalizing the pilots into production and industrializing AI will need FIs to rethink their approach to data storage and processing and internal task for KYC (Know your Customer):

• Customer Identification Program

• Customer Due Diligence

• Ongoing Monitoring

• Corporate KYC

• eKYC Verification on AML Watch List, Sanction List, Politically Exposed Person, Real Time AML Screening and other activities form the Guideline of CNBV (Comisión Nacional Bancaria y de Valores) in México.

• Mobile KYC

• Global KYC Compliance in FATCA in US, ACAMS and others Internationally.

• KYC News Around the World

Advancements in cloud technology are opening new horizons because cloud offers massive data storage and scalability, on-demand, high-performance computing, and infinite elasticity.

Collecting and analyzing people’s personal information can raise ethical and legal questions. Data governance in the digital era will therefore require additional focus on transparency, oversight, and control frameworks to ensure that data is used responsibly on Financial Institutions around the world.

Objectives of FATCA, KYC and AML

Gustavo Ernesto Rodriguez De LiraFounder · IT Capital©