AML Study Finds Manual Processes Slow Bank Compliance

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2021-12-02

RiskScreen’s AML Banking Survey Finds 8 in 10 Complain Their Compliance Processes Are Too Long, Slowing Onboarding And Selection

LONDON, December 2, 2021 / PRNewswire / – The study commissioned by RiskScreen, an award-winning provider of in-service integration, filtering and monitoring technologies, also found that two-thirds of compliance professionals in banks rely on manual processes to perform the necessary KYC checks.

Although 70% of those surveyed agree that the pandemic has accelerated digital transformation in the banking industry, more than half of those surveyed said the number of false positives generated by their existing solutions is too high.

The AML survey, which heavily targeted the banking industry, also found that 65% of compliance officers still rely on Google for adverse manual media searches. Filtering out unwanted media is part of the anti-money laundering (AML) and know-your-your-customer (KYC) due diligence processes that regulated entities, such as banks and insurers, must perform when making inquiries. the integration of new customers.

According to Stephen platt, CEO of RiskScreen and co-founder of the International Compliance Association, the use of manual processes hampers the ability of financial institutions to generate income while exposing them to unnecessary risk.

“Manual processes not only waste valuable employee time and add to the friction of a negative customer experience, they also have a significant impact on a bank’s time to generate revenue from new and existing businesses. . From a financial crime perspective, they can leave banks unnecessarily exposed to human error, risk of regulatory fines and enormous damage to reputation. “

Interestingly, the survey found that while a majority of respondents admitted to relying in part on manual processes to perform their due diligence checks, the risk of fines and serious legal consequences was their main concern regarding AML compliance breaches..

Although the adoption of regtech solutions in the banking industry has accelerated throughout the pandemic, Mr Platt argues that banks are still struggling to effectively onboard and screen customers while remaining compliant.

“While the digital transformation of the pandemic has certainly accelerated, financial institutions still appear to be grappling with too long onboarding times as well as oversight of risks with existing customers. If the banking industry really wants to to speed up their processes and generate faster revenues, then they need to start investing in the technology and tools that will make it easier and faster for compliance professionals to do their jobs. “

The full report can be accessed from this page.

About RiskScreen

RiskScreen is an award-winning AML and KYC technology provider dedicated to improving the efficiency of compliance services through the intelligent automation of the onboarding, screening, and lifelong monitoring processes of clients based risks.

RiskScreen solutions are flexible, scalable and verifiable. Most importantly, they are understandable, which allows compliance professionals to understand the logic behind the decisions RiskScreen helps them make.

Founded by leading compliance experts, including the original co-founder of the International Compliance Association, RiskScreen is a trusted technology provider to thousands of compliance professionals globally and a partner of the world’s leading data companies. and CRM, including Dow Jones, Refinitiv and Salesforce. www.riskscreen.com


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