In today’s world, financial crimes and terrorism in the financial sector are gaining increasing importance and precautions. One of the methods developed to prevent and detect such crimes, “AML” in other meaning “Anti-Money Launching” has spread to many sectors and has become vitally important for the detection. What is this AML?
AML, represents all policies, regulations, processes and technologies that address money laundering. It is a concept endowed with specific obligations to detect, report, and prevent illegal activities of financial institutions. In addition to acting in conjunction with technology, it follows advanced technology and uses analysis tools through automated and manual methods. Governments, fintech firms, investment firms, marketplaces, financial institutions, and the banking sector have challenges with the crimes at a serious rate and with a lot of data, and they have aimed to use AML to overshadow all potential risks. If we mention about which crimes they against, we can give examples of international crimes such as drug trafficking, terrorism financing, organized crime syndicates, corruption and bribery, smuggling.
The most reliable and resilient assistant to AML is KYC. KYC (Know Your Customer) is a set of practical procedures to verify the identity and other credentials of a user of financial services. With the hardware structure of KYC, AML prevents and barricades countless crimes. Therefore, we can say that AML activities include KYC procedures. Through KYC, businesses can check whether their customers pose a risk to them.
Customer Due Diligence (CDD) in the AML process and its importance are as follows;
It is the process of evaluating relevant and necessary background investigations on the customer in order to accurately assess all potential risks that may arise. They can catch fraudsters before they can commit crimes, saving the organization millions in Euro losses. This victory protects the reputation of the organization and continues on its way with a solid perspective in continuity. With AML, due diligence and risk prevention play critical roles. If money laundering takes place, businesses are also legally culpable. Therefore, when AML and KYC work together, the process is always efficient, security procedures are strengthened, and customer loss is prevented.
The customer acquisition process is becoming difficult as financial institutions spend a lot of time and money on manual and manpower-intensive processes. Thanks to the ease of automation brought by AI and ML technologies, customer acquisition processes and document management have become easier for banks. The technologies used by AML must be highly innovative and streamlined for fraud prevention. Let’s understand from this perspective why AI is such an important point in preventing these crimes. AI scores risk and saves both time and effort in analyzing big data. Thanks to its Natural Language Processing (NLP) system, it can read a lot of information in any language, making it easy to switch between languages and again, valuable in saving time.
Having customers from multiple cultures opens up an invaluable international pool for a business or organization, as well as brand and image strengthening and enhanced communication resulting from cultural adaptation.
The AML concept has many advantages for organizations and established businesses. One of the advantages is that it ensures the reliability of the financial system and plays an effective role in the fight against a financial crime. At the same time, it provides global cooperation and affects the international spectrum of this crime. On the other hand, it gives confidence to companies and customers by analyzing big data using AI, which has become a bomb on the world agenda and creates surprises with its updates every day.
Although AML is a methodology that stands out due to its advantages and is preferred by companies, AML should be implemented and reported through a two-way thinking process and legal regulations.
A solution that has earned the trust of the financial world and its customers by using AML methods: EnQualify
EnQualify is a remote authentication solution that delivers fast, accurate, reliable and the best customer experience internationally, surpassing industry standards. Its aim is to be the best in this field and to provide its clients and companies with 100% reliability and verification. Combining AI technologies to win the hearts of the new generation in the field of authentication, EnQualify has adopted the digitalization of many human-powered jobs as its mission.
One of the features of EnQualify is the effective implementation of KYC and the knowledge of the customer identity as well as the level of risk posed by the customer. In advanced AI-powered view, video, and document review, EnQualify leverages KYC solutions and provides comprehensive compliance checks when onboarding and verifying clients. In this way, it can perform risk assessment and regulate AML compliance legality.
Products of EnQualify
ID verification Product: It is a system that includes document and face reading process carried out together with AI. With this product, EnQualify has a verification rate of 99%. This system is designed according to the strict compliance procedures of KYC and AML. Using ISO 27001 regulations, it also ensures compliance with Face Verification Vendor Test.
Optical Character Recognization (OCR) with AI: It scans the physical document and digitizes it without leaving any margin for error. It optimizes the most verifiable version of the data using many algorithms.
Adaptive Near Field Communication (NFC) with Vibration Guidance: It is the process of reading documents by placing a card on the back of the device, regardless of the device used. It conveys information more directly to the user with tactile vibration figures and offers a template of receiving and interpreting data from many different types of chips used around the world.
Face and Liveness Check: This system is associated with the matching process between identity and face. Using physical features such as smiles and winks, it provides a liveness check and enables clear, seamless authentication. In particular, this method prevents identity theft. It creates an instant defense mechanism against anonymity and combines current selfies and AI to become one of the most important and indispensable parts of the digital system.
Digital Document Signing: It is the process of adding customers’ signatures to legal documents and contracts using AI technology developed in accordance with all security methods and company policies. With this product, EnQualify protects the customer’s original signature and contributes greatly to the flow of work. At the same time, it also verifies the authenticity of the signed document and assists in a paperless flow.
Many companies and financial institutions manage to avoid millions in losses by using AML and KYC obligations. At the same time, companies using these methods are able to compete with other high-profile and high-revenue companies in their field and emerge victorious. In this way, they gain new customers. Increased customer satisfaction has been greatly enhanced by AML and represents a more grounded representation of digitalization in today’s world.
In the digital age, businesses are constantly evolving to keep up with the ever-changing landscape of technology and customer expectations. One significant advancement in this regard is the implementation of electronic Know Your Customer (e-KYC) processes. e-KYC not only
The practice of adding a digital signature to an electronic document—like a contract, agreement, or form—is known as document sign process. A digital signature is a special code that confirms the integrity of the document and the signer’s identity.
An extra degree of security known as two-factor authentication (2FA) requires a user to provide a second authentication factor in addition to their login and password. Usually, the person has something (a smart card or hardware token) or something unique
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