Hyarchis publishes KYC & AML predictions for 2030 - Hyarchis
Opinion matters

Hyarchis publishes KYC & AML predictions for 2030

published 2023-08-06

During the world’s largest global fintech event, Money20/20 in Amsterdam, Hyarchis launched its market report Predictions in KYC and AML for 2030. The report features the vision of opinion leaders and early adopters on compliance in onboarding and monitoring in 2030.

Money laundering and terrorism financing (ML/TF) pose a serious threat to the integrity of the EU economy and financial system and the security of its citizens. With the number and volume of fraud attacks increasing dramatically, financial institutions have put in procedures to keep an eye on questionable activity. But 95% of these system-generated alerts are false positives, which end up costing businesses billions of dollars in wasted investigation time each year, says Adriaan Hoogduijn, CEO of Hyarchis. “It is clear that if we want to have a robust and vibrant financial system, compliance needs to be reinvented. That is why we have commissioned this report: to identify trends and developments that will allow financial institutions a more efficient way of fulfilling their gatekeeper function.”

The report highlights a number of trends that will drive these developments:

Trend: always-on compliance

Expect to see financial institutions move away from static one, three, and five year review cycles and adopt continuous KYC. A new business model called KYC-as-a-Service (KYCaaS) outsources KYC compliance to outside companies. This strategy might make KYC compliance less expensive and complicated.

Trend: personal data vaults

Consumers, fed up with external parties knowing everything about them, will take back control over their own ID and data. This will lead to the emergence of personal data vaults. The discussion on personal data vaults will gain momentum through the lively debate about ChatGPT that has put themes of intellectual property, authenticity and ethics are in the spotlight.

Trend: biometrics

Facial recognition and fingerprint scanning are two biometric technologies that are increasingly common in a variety of industries. This technology will likely be used in KYC compliance to enhance the verification process and lower the risk of identity theft.

Trend: digital twinning

Digital twins are a virtual representation of real-world physical objects; a digital counterpart to something that also exists as a physical object or being. In KYC, this means a customer might have their own “digital twin” on a blockchain, which would be used to hold the crucial information that all financial institutions require to operate. Digital twins of the consumer act as “KYC passports”.

Written by
One Step Ahead

More interesting posts

Welcome to the team post (1)
Remediation : the cornerstone of a good KYC policy

Remediation is the last of the three major building blocks of a good KYC policy....

Read more
Monitoring: the heart of a good Customer Due Diligence policy

The Wwft requires financial institutions to subject customers to a periodic audit to monitor customer behavior and identify deviations....

Read more
Welcome to the team post
Onboarding: the battle for the customer

Financial institutions have to adhere to a lot of rules. They have to check the identity of their customers, check whether they are...

Read more

Want to learn more? Subscribe to our monthly newsletter and stay one step ahead!

Contact information