4 AML trends for 2024 and beyond
The US alone has nearly $300 billion laundered annually. Financial organizations face significant fines when they cannot keep up with compliance standards.
Anti-money laundering operations face further challenges due to fraudsters becoming smarter and adapting new methods to launder money.
It’s up to the organizations to practice effective AML compliance. Keeping up with the latest trends is one of the ways to minimize the challenge.
Let’s explore what’s predicted for anti-money laundering in 2024 and beyond.
1. Emphasis on crypto regulations
As a concept, cryptocurrency dropped its momentum in recent years after many cryptos dropped in value or crashed completely.
However, crypto is not going anywhere. It remains a perfect environment for criminals to move funds and avoid detection.
More and more governments are enforcing regulations for crypto platforms to complicate things for criminals. The crypto industry has been unaddressed for too long. It’s up to the governments to prevent digital asset exploits that simplify money laundering in the digital world.
2. An eye on metaverses
Virtual reality presents another problem for regulators. With the rise of Metaverse, fraudsters can access another medium where they can launder money.
A virtual world is different from the real world, but it still lets one convert real currency into digital assets. Criminals can then convert their newly acquired digital assets back into real currency.
As a concept, virtual reality and metaworlds are relatively new. Hopefully, there are enough sophisticated solutions that will address the virtual world threat in the context of money laundering.
3. Increased usage of artificial intelligence
Despite being different, AML and AI complement each other. The former helps AI systems reach more accurate results, whereas the latter supports AML. The dynamic is bound to improve in the foreseeable future.
Thanks to globalization, financial institutions go beyond local boundaries. It’s imperative not to fall behind in the age of digitization. Artificial intelligence cannot replace real people (not yet, anyway), but it eliminates or simplifies redundant processes, with AML being no exception.
4. Resources for transaction monitoring and screening
Organizations that struggle to dedicate resources to transaction monitoring are bound to fail in their anti-money laundering efforts.
Only finding a breach allows you to stop it. Identifying fraud calls for modern solutions. AML software brings automated transaction monitoring that identifies and flags suspicious activity with surprisingly high accuracy.
Once the software does its job, analysts can take over and proceed. The purpose of automation software is pretty clear—to improve efficiency in investigating fraud.
