Anti-money laundering (AML) is a constantly evolving field. In 2024, AML professionals must adapt to the changing regulatory landscape, the growing use of new technologies, and evolving ways of fighting financial crime.
As we enter a new year, we outline how three key AML areas will impact regulated businesses in 2024.
One of the significant AML trends for 2024 is the expected adoption of new or revised initiatives.
For example, the European Union (EU) has plans to adopt a new AML package to harmonise rules in the union, establish a new AML authority (AMLA), and enhance cooperation and information sharing among the member states.
Moreover, the changes will likely increase regulatory scrutiny and enforcement.
These regulatory changes will significantly impact regulated businesses, requiring them to strengthen their AML policies, implement more efficient procedures, and further educate their staff.
Without a doubt, 2024 is the year many businesses will adopt new technologies, such as artificial intelligence (AI), to enhance the efficiency and effectiveness of their AML processes.
AI will affect AML teams in various ways. Here are some possible consequences:
AI can also pose some challenges and risks for AML teams, such as ensuring the trustworthiness, transparency, and compliance of AI models.
Therefore, it can be a powerful tool but requires responsible use. Before onboarding new technology in your organisation, hiring a skilled consultant or consulting with another capable third party is advisable.
As regulations become stricter and financial crime becomes more sophisticated, AML teams must manage risks more efficiently across and between channels, products, and systems. Financial crime risks must be increasingly seen as a whole, not as separate parts.
We've written about how the role of the AML specialist is evolving. AML specialists should use a broader and more connected strategy to deal with the changing and complex nature of financial crime.
That includes collaborating cross-functionally within the organisation to enable a holistic and integrated approach. They must also work more closely with other parties, including regulators and law enforcement, to exchange information and take joint actions against money laundering and related crimes.
From increased regulatory complexity to the double-edged role of artificial intelligence, the upcoming year will see financial organisations navigate multiple challenges in financial crime prevention.
Faced with these changes, AML teams must be proactive, adaptive, and innovative and, in doing so, contribute to a more resilient and secure financial system in the years ahead.
The financial sector is looking for experts in anti-money laundering (AML), which is crucial for preventing and detecting illegal activities. Reports show that the demand for AML talent has risen by 58% since 2016.
Money laundering in gambling can have severe consequences for gambling companies and payment institutions that handle their transactions. Following Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations is essential to avoid these risks.
We are pleased to announce a long-term collaboration between POP Bank Group and Trapets for anti-money laundering and fraud solutions.