Latest reports show financial institutions are concerned about cryptocurrencies regulations and ultimate beneficiary owners (UBO) for the onboarding companies or clients. For close tracking, the US treasury department's anti-money laundering unit creates new and amended regulations to prioritize the needs of AML laws and prevent money laundering.
However, in addition to the AMLA and the CTA, financial services executives are concerned about a variety of other challenges, ranging from shifting legislation to sanctions screening to the integrity of their data as they continue to onboard new clients at a quick rate, frequently remotely.
This year's study highlights some similarities to previous years' reports, as well as changes and trends. These trends were acclaimed from the responses of 261 AML and CDD compliance decision-makers ranging from large financial institutions (with more than $500 billion in assets under management) to small financial institutions (with less than $1 billion in assets under management) and everything in between.
Identifying impending changes to beneficial ownership screening and disclosure requirements, managing the growing cryptocurrency regulatory environment, and identifying virtual currency risks were among the top industry trends identified by respondents. Respondents also expressed worry about the usage of technology to mitigate AML risks, such as automation, data solutions, and other technologies.