Predictions in the KYC & AML space for 2030

A recent analysis showed that the number of FTEs engaged in CDD (Customer Due Diligence) customer screening at the top three banks in the Netherlands is now estimated to be already 15% of the total workforce. In the Netherlands, up to 20% of the total number of bank employees perform a ‘gatekeeper’ function. The volume of money laundering and other financial crimes is growing worldwide—and the techniques used to evade their detection are becoming ever more sophisticated. This has elicited a vigorous response from Financial Institutions which, collectively, are investing billions each year to improve their defenses against financial crime.
Additionally, regulators are putting more pressure on Financial Institutions. When regulators impose harsher penalties, the resulting fines tied to compliance rise year over year. The battle against money laundering is a constant problem for compliance, monitoring, and risk groups since banks’ conventional rule- and scenario-based approaches to combating financial crimes have always seemed to be one step behind criminal organisations.
AML (Anti Money Laundering) legislation and KYC requirements must advance at the same rate as digital finance, but AML regulations have typically lagged behind illegal behaviour in the past. Businesses might soon notice a change here. End of March 2023, Brussels approved stricter rules to close existing gaps in combating money laundering, terrorist financing and evasion of sanctions in the EU.

What are the most likely scenarios for the development of digital KYC and AML compliance in the future? How will technology help pave the way forward? In this Hyarchis market report, launched at in Amsterdam, 6-8 June 2023, we provide predictions in het KYC and AML space for 2030, presented by opinion leaders and early adopters. Hyarchis is the leading provider of AI-driven compliance solutions for client onboarding, monitoring and remediation to financial institutions in the Netherlands.

You can download this report in English for free.