The past 12 months hinted at the increased scope in regulatory penalties. And, as 2021 saw agencies worldwide escalating the scale and range of measures, our compliance experts proved spot on!
In January, the Philippines added offshore gaming operators, real estate developers and brokers to the government’s Anti-Money Laundering Act. In April, the Monetary Authority of Hong Kong released new AML guidelines as part of a two-year roadmap on RegTech adoption in banking. In June, the UAE Central Bank mandated suspicious activity reporting, while Dubai set up a court dedicated to combating AML. And in September, the National Committee for Combatting Money-Laundering and Financing of Terrorism and Illegal Organisations introduced stricter requirements for virtual asset providers.
This snapshot of a much broader picture is an indication of stricter things to come. Meaning that, as we move into 2022, institutions working within the finance sector will need to be even more prepared! Read on to find out how this coming year’s changes in AML regulation will directly affect your organisation.
Stricter Crypto Regulations
As fraudsters have got craftier and craftier in their crypto exchanges (according to Chainanalysis’ 2021 Crypto Crime Report, 270 cryptocurrency addresses received $1.3 billion in illicit digital coins in 2020!), ever-stricter crypto regulations have become a bit of a theme. 2022 will see this trend continue….
In the US alone, the last few years have seen an increasing number of agencies – including the Securities and Exchange Commission, Commodity Futures Trading Commission and FinCEN – involved in crypto regulation.
But 2022 will now see cryptocurrency exchanges required to complete a Know-Your-Customer process for every single customer – a trend that will no doubt make its way to every country across the globe before very long.
Increased Use of Artificial Intelligence
Adoption of Artificial Intelligence (AI) and Machine Learning (ML) will surge in the next 12 months. Already, amidst a pandemic-driven surge of financial crime, many institutions have deployed AI as part of their compliance processes. And any organisation hoping to survive 2022 will need to do the same…
Emerging AI and ML technologies are now crucial tools for compliance professionals in their fight against financial crime. And whatever the size and scope of your organisation, the next year will see immense pressure to adopt state-of-the-art technology in order to combat AML and stay ahead of regulatory measures.
According to a survey by money laundering specialists ACAMS, there’s a desperate need to improve the quality of investigations and regulatory filings and reduce false positives and resulting operational costs. In 2022, we can expect compliance officers to sign up for AI and ML in their droves!
Emerging Technologies to Combat Crime
As fraudsters become ever more wily in their approach to financial crime, the only way for organisations to fight back is with new technology…
We’ve already seen regulators worldwide pressuring banks to adopt better software and incorporate emerging tech. But the next 12 months will see the emergence of highly advanced, innovative technologies that are able to match the criminals’ capabilities and adapt to new threats.
In 2022, the buzzword in the financial industry will be automation. Year on year, we’ve seen compliance teams increase in size and expense. But we know the human mind can never compete with AI. In 2022, as we move into the future, we’ll see organisations of all sizes adopt automated compliance processes to ensure they maintain their place in a constantly changing financial landscape.
