25 June 2020, 12:57
25 June 2020, 12:57
The Compliance Department of the Future is a small, highly specialized and collaborative department with smart people using smart technologies. With increasing scandals and increasing focus from the authorities, regulatory requirements and penalties have evolved with the ages. Compliance, however, did not. All over the world, financial institutions rely on outdated and inefficient software to handle their compliance needs.
Although compliance is based on legal issues, most of the current compliance software has been developed by personnel with little to no knowledge of the industry. Many of them even lack a legal background.
The previous decade can be characterised by long hours of manual back office work and attempting to suffocate problems with excel sheets and employees. The required staff in compliance departments grew exponentially in most corporations with no significant improvement in compliance results. Fin-techs also took the same approach, employing hundreds dedicated to AML. With all the systems at the time lacking configuration and integration, compliance departments were simply inefficient. Most of the time was wasted on false positives generated by the flawed systems. Billions were paid in fines, and attempting to keep up with the ever changing compliance requirements was failing. By the dawn of the new decade, Compliance had finally made it onto the agenda.
Now, technology is beginning to catch up with the help of innovative firms such as DX solutions. Introducing a cloud-based software-as-a-service (SaaS) model making AML software finally User-friendly and coherent with the addition of AI elements reducing false positives by over 70%.
The main goal of AML Teams that use Software is not only the finding suspicious activity and investigating them but also on focusing on the right rules to reduce false positives. Over the past 15 years, AML Regtech has evolved from: rules-based scenarios to more predictive analytics aimed at identifying patterns, correlations, and clusters of activities. Behaviour detection systems are moving from the static analysis of large structured data to a dynamic analysis of both structured and unstructured data that leverages multiple, sophisticated algorithms and machine learning.
We at DX Compliance solution believe we are at the helm of a revelatory change in the compliance industry. Be a part of that change. The future is in your hands.
26.04.2021 AML Compliance
How Fintech has set the foundation and facilitated the growth of Regtech.Get access
21.01.2021 Anti-Money Laundering
Covid-19 Pandemic & Money LaunderingGet access
Eliminating ML/FT risk in the UAEGet access