NextGen AML: a Point of View


NextGen AML

Our perspective on a more connected, impactful and sustainable fight against financial crime

The current framework in which financial institutions fulfill their role against financial crime is end of life. The vast efforts do not necessarily result in a safer world. We need new perspectives about how financial crime should be combatted in a joint effort spanning the whole chain. Still based on the legally bound roles of actors, but with enhanced and better aligned strategies. This is what we call NextGen AML. In this blog series, we are revealing our view on the drivers that will help to achieve this required change.

Download the NextGen AML whitepaper

Amid growing regulatory and public scrutiny, financial institutions are mounting massive efforts to fight money laundering through their systems — but the actual effect on financial crime is as yet disappointing. We believe it’s high time for a radically new approach: NextGen AML. We have bundled our articles about NextGen AML in a whitepaper which provides a complete overview of all drivers that will help to achieve the change.

NextGen AML whitepaper

Blog 1 | NextGen AML: A point of view

Today’s AML framework has reached end of life, introducing the case for change.  

Amid growing regulatory and public scrutiny, financial institutions are mounting massive efforts to fight money laundering through their systems — but the actual effect on financial crime is as yet disappointing. We believe it’s high time for a radically new approach: NextGen AML. What that means? First, going back to the legal basis of current anti-money laundering practices. Then, focusing on deep impact and clear outcomes.

Read the perspective here

Blog 2 | NextGen AML: A case for change

Accelerate enhancements in five key areas

Are the outcomes of current Anti-Money Laundering implementations worth the vast efforts that players in the field put into it? In our first blog, we presented our perspective on the case for change. To increase impact, reduce unnecessary efforts and keep up with criminal inventiveness, a new approach is needed. But how do we get there? Creating NextGen AML calls for change in five driving areas.

Read the perspective here

Blog 3 | NextGen AML: ecosystem-driven change

Fixing the AML framework takes an entire ecosystem

Financial institutions are individually snowballing financial and human resources at their Anti Money Laundering processes, but the questions rises whether there are more effective ways to fight financial crime. A big step in the right direction would be to improve the organisation of processes within the ecosystem of financial institutions, regulators and law enforcement. In this third blog on NextGen AML, we present our view on the first out of five area’s of change: the AML ecosystem.

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Blog 4 | NextGen AML: Intelligence-driven change

Let intelligence lead the way in fighting financial crime

Anti-money laundering processes are often ‘one size fits all’. All clients and transactions receive similar treatment within large scale factories. This is causing loads of red tape for ordinary citizens and businesses, while criminals may still manage to escape notice. It’s time for a smarter approach, one that some FIs are already pioneering. As such they are the front runners of NextGen AML, in which they adapt focus based on the latest intelligence from across the AML ecosystem.

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Blog 5 | NextGen AML: Output-driven change

Refocus the risk based approach

If the combined Anti-Money Laundering efforts of Financial Institutions (FI’s), regulators and enforcers are to really reduce financial crime, they need to be focused where they will have most impact. That means first reaching agreement among themselves what the output of these efforts should be to make an impact. And then, importantly, making choices which new and existing AML processes they need — or don’t need — to achieve it.

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Blog 6 | NextGen AML: Data-driven change

Making the most of data to transform AML

Any anti-money-laundering approach, and certainly a next-generation one, is fuelled by digital data. Fortunately, in our digital era there is no lack of available data to analyse. Indeed, financial institutions and other parties in the financial ecosystem are already struggling to handle the sheer mass of data generated by financial transactions and KYC processes. To leverage this valuable resource for AML, FIs must climb the data maturity ladder.

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Blog 7 | NextGen AML: Technology driven

Embracing new technology to transform AML

Technology offers financial institutions a world of opportunities to make data-heavy anti-money-laundering processes faster and smarter. Artificial intelligence in particular promises to revolutionise the AML effort. FIs are scrambling to hop aboard this train, but to truly benefit from today’s technology, they have work to do. First, revisit yesterday’s legacy, and then develop a comprehensive tech strategy for the next decade. Meanwhile, regulators are challenged to keep abreast of these new technologies and create a safe space where they can flourish.

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Blog 8 | NextGen AML: Getting there

A holistic approach to transform AML

In the previous blogs, we have identified issues with the current AML framework. We have discussed changes in five driving areas that can make AML efforts smarter, increase their impact and reduce operational waste. The challenge now: the entire financial ecosystem, from regulators and enforcers to FIs, must start taking action on all these good ideas at once and orchestrate them into solid momentum.

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More information

If you have any questions or would like to receive more information about the NextGen AML articles, please contact  Karin de Jong or Mark Hoekstra using the contact details below. Being a part of the ‘financial crime ecosystem’, we see it as our responsibility to connect views and actors to make the world a more secure place. Stay tuned!

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