• Latest
  • Trending
Financial institutions and the role of technology in enforcing Anti-Money-Laundering (AML) compliance

Financial institutions and the role of technology in enforcing Anti-Money-Laundering (AML) compliance

May 30, 2023
Edtech startup The Invigilator raises $11 million to scale its AI platform

Edtech startup The Invigilator raises $11 million to scale its AI platform

September 6, 2025
iXAfrica receives RMB financing to fast-track 20 MW expansion in Nairobi

iXAfrica receives RMB financing to fast-track 20 MW expansion in Nairobi

September 6, 2025
OpenAI challenges LinkedIn with new AI-powered hiring platform

OpenAI challenges LinkedIn with new AI-powered hiring platform

September 6, 2025
Tanzanian fintech NALA takes its services to Kenya

Tanzanian fintech NALA takes its services to Kenya

September 6, 2025
Call of Duty movie: Paramount, Activision strike deal for live-action adaptation

Call of Duty movie: Paramount, Activision strike deal for live-action adaptation

September 5, 2025
Meta Brings Back Facebook Poke with Emojis and Streaks

Meta Brings Back Facebook Poke with Emojis and Streaks

September 5, 2025
Know why they’re calling: Truecaller launches AI-powered insights

Know why they’re calling: Truecaller launches AI-powered insights

September 5, 2025
Visa harnesses local partnerships to launch Visa Pay in DR Congo

Visa harnesses local partnerships to launch Visa Pay in DR Congo

September 5, 2025
Betika denies recent reports of security breach

Betika denies recent reports of security breach

September 5, 2025
10 things you can actually buy with crypto in Africa

10 things you can actually buy with crypto in Africa

September 5, 2025
Your one-stop tech hub! Get the latest updates on AI, cybersecurity, fintech, and emerging technologies.
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
Techpression
No Result
View All Result
Home Tech News Africa Tech News

Financial institutions and the role of technology in enforcing Anti-Money-Laundering (AML) compliance

Staff Writer by Staff Writer
May 30, 2023
144 6
0
Financial institutions and the role of technology in enforcing Anti-Money-Laundering (AML) compliance
465
SHARES
Share on FacebookShare on TwitterWhatsAppTelegram

The world’s financial institutions are increasingly being targeted by criminals. These crimes cover a wide range of activities, from forgery and counterfeiting to fraud and money laundering. 

Financial institutions rely on anti-money laundering (AML) compliance practices to forestall the occurrence of such crimes.

In order to forestall illicit activities like money laundering, terrorism funding, and other illegal financial transactions, financial institutions must use AML compliance practices. These procedures, designed to protect the honesty of anti-money-laundering rules, have been in use for quite some time. However, in recent years, financial institutions have increasingly looked to technology in order to improve their AML compliance procedures.

Technology has been widely adopted in AML compliance practises in recent years to increase productivity, enhance accuracy, and decrease overhead expenses. This article will focus on the use of technology by financial institutions around the world to implement anti-money-laundering compliance procedures. 

RelatedPosts

Zenith Bank emerges Nigeria’s best bank at Euromoney Awards 2025

Ripple and Chipper Cash partner to expand cross-border payments in Africa

Read also: We Must Employ Technology To Fight Crime In Nigeria – Defence Minister

Learning Machines and Synthetic Intelligence

A growing number of banks and other financial institutions are using machine learning and AI to ensure they are in compliance with anti-money laundering regulations. These systems help financial firms spot and prevent potentially illegal behaviours, including money laundering and other forms of financial misdeeds. 

In order to make sense of massive amounts of data, such as customer transactions, account details, and consumer behaviour, machine learning and AI systems employ complex algorithms. The analysis allows the systems to spot irregularities and patterns that could point to criminal intent.

The effectiveness of these systems in identifying anomalous behaviours can also be enhanced by the use of historical data. Some aspects of anti-money-laundering compliance are being automated with the use of machine learning and artificial intelligence. 

Financial institutions can benefit from automation since it helps them save time and money while also increasing the precision of their AML compliance procedure. As a result, fewer people are needed to make the system run well, which frees up valuable resources. 

 

Laying Down Customer Due Diligence and Know Your Customer Policies

The Know Your Customer (KYC) and Customer Due Diligence (CDD) processes are crucial parts of AML compliance procedures. The prevention of money laundering and other illegal actions requires financial institutions to confirm the identities of their customers, evaluate the risk posed by those customers, and keep a close eye on their accounts 24/7. Verification and monitoring in the traditional KYC and CDD processes are performed manually, which can be both time-consuming and error-prone.

The Know Your Customer (KYC) and Customer Due Diligence (CDD) processes are increasingly being automated with the help of technology. For instance, biometrics are being utilised to confirm a customer’s identification.

Note that AML compliance is the overarching goal, and KYC is merely one step financial institutions take to get there. However, the two names are frequently confused, with no clear understanding of the distinction between them. 

You may read an article from AU10TIX that will offer you a thorough explanation of the distinctions between KYC and AML and how they function together if you’re interested in learning more about this topic. 

Cybercrime Typology in Nigeria: A Sign of Industrialisation Part 1

Technology Behind Blockchain

The distributed ledger technology used by blockchain can facilitate safe and transparent transactions between any two financial organisations, including banks. 

Financial transactions can be recorded securely and transparently using blockchain technology, which is being employed in AML compliance practises. With the use of this software, banking institutions may instantly communicate transaction data, which speeds up and streamlines the anti-money-laundering compliance procedure. In addition, blockchain technology aids in enhancing the precision of AML compliance procedures. This system generates a permanent record of all transactions that can never be changed or erased. This function makes it more challenging to falsify records of financial transactions, hence aiding in the prevention of money laundering and other illicit acts.

Tags: Anti-Money-LaunderingFinancial institutions
Staff Writer

Staff Writer

No Result
View All Result

Quick Links

  • Tech News
  • Cryptocurrency
  • Fintech
  • Startups
  • Business

Follow Us:

  • facebook
  • instagram
  • Twitter(X)
  • Linkedin
  • YouTube
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2025 Techpression.com -Techpression Media Limited

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in .

No Result
View All Result
  • Home
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • Reviews
    • How To
    • General News
  • Cryptocurrency
  • Business
  • Fintech
  • Startups
  • Featured
  • Ai
  • Tech TV

© 2025 Techpression.com -Techpression Media Limited

techpression.com
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

3rd Party Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.