A key pillar of regulatory compliance
The fight against money laundering and the financing of terrorism (AML/CFT) is a major challenge for financial institutions. Framed by a strict regulatory arsenal at national and European level (directive AML, ACPR regulations, etc.), this obligation aims to prevent the risks of fraud, D 'identity theft, or even financing of illicit activities.
The effectiveness of the KYC is measured in particular through the number of suspicious activity reports sent to Tracfin, the French financial intelligence unit. In 2023, Tracfin received 190 reports, a 653% increase compared to 15.
But behind this legal framework, Operational staff are faced with a complex reality: that of manual, time-consuming and risky management, especially for processes KYC/KYB (Know Your Customer / Business).
The essential tasks of AML/CFT control
Controls AML/CFT involve many steps for each client or partner, among :
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Collection and verification of documents : statutes, Kbis extract, identity documents, declaration of beneficial owners, etc.;
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Authenticity and consistency checks : data validity, analysis OCR, verification of MRZ, electronic signature, etc.;
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Identification of beneficial owners : analysis of the sometimes complex capital structure;
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Check against sanctions lists and PEPs : OFAC, UN, EU, local lists;
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Customer risk level scoring : depending on the activity, structure, geographical areas, etc.;
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Additional due diligence for high-risk cases ;
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Compliant archiving and traceability to the standards in force.
Each step is crucial, but it comes with a heavy administrative burden, back-and-forth with customers, and risks of human error.
Charges vary greatly depending on the type of customer
Here is an estimate of the average time spent on checks AML/CFT, depending on the legal form of the controlled entity and its risk level:
It is found that processing a low-risk sole proprietorship or LLC can take less than an hour, while a high-risk SA or NGO can mobilize up to 8 hours of cumulative work for compliance teams.
Automation, a key lever for optimizing compliance
Faced with this reality, innovative solutions such as KYB by Luminess allow to profoundly transform the way institutions manage their AML/CFT obligations.
The platform integrates:
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A self-care portal for customers, enabling the secure transmission of data and documents;
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Automatic data capture via OCR, intelligent reading, analysis of capital structures;
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Automated document checks, sanctions lists and data consistency;
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Complete traceability and compliant archiving to the requirements of the ACPR.
With KYB by Luminess, time saving is estimated between 60% and 80% depending on the case, with a streamlined customer experience and enhanced compliance.
Reconciling regulatory rigor and operational efficiency
AML/CFT compliance is essential, but it must not become an operational burden. Thanks to smart and secure platforms as KYB by Luminess, financial institutions can refocus on their business, while ensuring rigorous, rapid and compliant control.
In a world where regulations are intensifying and fraud become sophisticated,self-regulating automation techniques becomes a strategic asset to combine performance, trust and transparency.