Let us as a KYC application development company offer KYC/AML application advancement and arrangement. Over the past few years, the Know Your Customer (KYC) and Know Your Business (KYB) verification processes for initiating clients have evolved significantly, as functions of the ever-increasing complexities of the business landscape and escalated regulatory scrutiny.
Balancing regulations for AML/CFT with attempting to create an efficient and seamless onboarding process for new customers to increase profits has proven to be increasingly difficult for banks internationally.
In an attempt to mitigate the impacts of money laundering, market manipulation, and terrorist financing, governments have bolstered their compliance requirements.
Regulatory changes like Europe’s fourth Anti-Money Laundering Directive (MLD4) and Financial Crimes Enforcement Network Customer Due Diligence Rule (FinCEN CDD Rule) have forced banks to choose between efficiency and proper diligence.
Regulatory mishaps have forced banks to pay $321 billion in fines since 2008 and a Reuters report predicts that the US and Europe-based banks will incur more than $400 billion in fines by 2020, as a result of misconduct and inadequate AML measures.
Large US and European banks are spending $20 billion a year on technology to help them comply with newly evolving regulations such as MiFID and PSD2.