While left 2020 behind, we see last year was challenging to fight against financial crime like all the other sectors. COVID-19 has affected many industries. The same challenges will likely occur in 2021 as the virus is still not losing its impact worldwide. Some gaps in AML compatibility emerged in epidemic conditions, and criminals tried to fill those gaps. Therefore, in 2021, regulators such as the FATF and the European Union may increase their regulations to fill these gaps.
Sanction Scanner predicts that regulatory pressures will continue and even increase in 2021. They believe that institutions at risk of money laundering should be more concerned with AML compliance. Technology and artificial intelligence can provide significant benefits in ensuring this compatibility, and as a result, 2021 can be called the most effective year of artificial intelligence compared to other years. Also, in 2021, criminals may discover new ways to launder money.
As a result, Sanction Scanner asked 28 experts from 17 different countries to, “What are your expectations about AML trends in 2021?”. They have compiled the 2021 AML Trends views and received them from experts into a report. You can see very different 2021 AML scenarios in this report, and these views are worth examining.
Report Highlights in Brief:
- Fraud will be the largest trend in AML for 2021. 2021 will be “The Year Of Fraud,” and post 2021 at all major banks, Fraud and AML Functions will be fully combined into one department at all major banks by the end of the year.
- Geopolitical worries will bleed into the AML realm in the form of additional sanctions and related AML activity.
- BSA/AML enforcement actions in the USA will increase based on newly appointed financial regulators who believe in compliance, regulation, and enforcement, replacing those who believe that the market knows best.
- The pace at which virtual assets are picking up pace around the world there is not looking back and only regulating the same will effectively combat the evils of money laundering.
- Digitalizing all processes and products, investing high tech resources and experts will bring super-fast, simple, and customer-oriented solutions.
- The main challenge for all in the AML sector will be to update our control processes to monitoring operations with Stablecoins.