Due to the lack of advanced automated systems and enhanced due diligence in banks, financial institutions, etc. the organized crimes have crossed $2 trillion in total. The crimes include finance terrorism, prostitution, sex trafficking, money laundering through real estate, etc. has played a significant role in the process.
Concerning money laundering, financial regulators of different countries and global regulators like FATF has charged hundreds of banks, financial institutions, NBFCs, Credit processing systems, etc. millions of dollars due to incompetency in showing interest in stopping financial crime. In the first half of 2021, $1 Billion was charged to the UK and EU for non-compliance with anti-money laundering laws.
These fines indicate that regulatory authorities are closely monitoring the case management system of institutions and entities for loopholes in complying with anti-money laundering activities. But it also suggests there are still a significant number of businesses that, for whatever reason, do not understand their role in the fight against fraud and global money laundering, particularly in the property sector.
How institutions and entities can stop AML activities?
Enabling automated systems like enhanced checks and customer due diligence navigates the need for physical verification. Manual processes are not error-free and, the accuracy could be intervened due to several reasons. Digital verification enables cross-checking of identities with reliable data sources and delivers results in seconds.
Moreover, regulating authorities are putting more pressure on financial services to support their processing system to automation. It will help to undertake the situation for financial frauds and enable faster alerts on the high-risk profile and high-risk transactions.