Regulatory compliance is a critical component of business operations for companies operating in a variety of sectors, including banking, finance, and gaming. Ensuring compliance with relevant regulations and legislation is crucial for companies looking to avoid hefty fines, reputational damage, and legal consequences.

One area where regulatory compliance is particularly important is in Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures. In this article, we’ll explore the importance of good AML work, some of the top AML fines that have been issued recently, what to look for in regulatory compliance software, and how Kyros AML Suite can help companies improve their compliance processes.

Why Good AML Work is Important

The financial cost of money laundering is staggering. The United Nations Office on Drugs and Crime (UNODC) estimates that between 2% and 5% of global GDP is laundered each year, representing between $800 billion and $2 trillion. In addition to the financial cost, money laundering has significant social and political implications, contributing to the proliferation of organized crime, corruption, and terrorism.
To combat money laundering, governments around the world have implemented strict AML and KYC regulations. These regulations require companies to implement robust AML and KYC policies and procedures, conduct due diligence on customers and transactions, and report suspicious activity to relevant authorities. Good AML work is critical for companies to remain compliant with these regulations, avoid hefty fines, and protect themselves and their customers from the harmful effects of money laundering.

Recent AML Fines

Regulators have been cracking down on companies that fail to comply with AML and KYC regulations. Recent years have seen some of the largest AML fines ever issued.

In 2020, Goldman Sachs agreed to pay $3.9 billion to settle a probe into its role in the 1MDB scandal, which involved the embezzlement of billions of dollars from a Malaysian state investment fund. In 2019, Swedbank was fined $386 million for failing to prevent money laundering, while Danske Bank was fined $225 million for facilitating money laundering through its Estonian branch.

The fines issued to Goldman Sachs, Swedbank, and Danske Bank demonstrate the significant financial and reputational risks associated with failing to comply with AML and KYC regulations. Companies that fail to implement robust AML and KYC procedures not only risk incurring fines, but also damage to their reputation, loss of customers, and even criminal charges.

What to Look for in Regulatory Compliance Software

To ensure they remain compliant with AML and KYC regulations, companies need to implement robust compliance software. There are many regulatory compliance software providers on the market, so it’s important to know what to look for when selecting a provider. Here are some top tips:

  1. User-Friendly Interface: Look for software that is user-friendly and easy to navigate. A complex interface can lead to errors and slow down compliance processes.
  2. Customization: Compliance software should be customizable to meet the specific needs of the company. This ensures that the software is tailored to the company’s unique compliance risks and requirements.
  3. Integration: The software should be able to integrate with other systems used by the company, such as customer relationship management (CRM) and enterprise resource planning (ERP) systems. Good API’s ensures that compliance processes are streamlined and efficient.
  4. Scalability: As the company grows, its compliance needs may change. Look for software that is scalable and can grow with the company.
  5. Analytics and Reporting: The software should provide detailed analytics and reporting capabilities, allowing companies to identify potential compliance risks and monitor compliance performance.

How can Kyros AML Suite help?

One regulatory compliance software provider that meets all of these criteria is Kyros AML Suite. Kyros is a complete KYC and AML cloud-based dashboard solution, with support for more than 200 countries. Kyros supports you in onboarding and monitoring your customers, working in conjunction with your regular backoffice.

Kyros works in conjunction with your existing website, back office or CRM-system. Kyros retrieves basic user information and transaction logs via API or manual upload. Kyros analyzes the data and enriches it with supplemental information from premium third-party sources, including international PEP and sanction lists. You can also integrate Kyros-hosted self declaration forms into your onboarding flow. AI analyzes the enriched data and automatically risk-scores users based on individualized risk parameters that you control.

Kyros also offers live transaction monitoring of all transactions, allowing you to setup advanced alert rules for user behavior and transaction data – such as triggering EDD based on transaction limits. All compliance work is performed in the cloud-based Kyros Data Suite. All compliance actions are logged, allowing for easy third-party auditing.

Compliance managers and AML specialists can create automatic in-depth reports for easy Suspicious Activity Report (SAR) and Suspicious Transaction Report (STR) reporting.

You can use Kyros Data Suite on its own, or as an integrated part of your backoffice. Data can be exchanged seamlessly back and forth. API webhooks allow for automated back office decision-making.

With Kyros AML suite, you can onboard and monitor users with ease. It sounds too good to be true – discover why it’s not.