The challenges and opportunities within the AML industry
Lucinity shares about the increased regulatory burden that PSPs will experience
In a recent article, Vixio interviews Daníel Pálmason, General Counsel and Head of Compliance at Lucinity, about the challenges and opportunities within the AML industry. The interview focuses on the increased regulatory burden that payment service providers (PSPs) will experience with growing complexities from e-wallets, instant payments, and cryptocurrency.
Increased legal requirements for financial institutions
Resulting in 3x growth in the AML software market
Research indicates that the value of the AML software market is expected to grow from $2.1bn in 2021 to $6.2bn in 2028. This is 3x its current market, driven by increased legal requirements for financial institutions and the increased use of artificial intelligence (AI) tools, according to the Global AML Software Market Analysis Report of 2022.
The need for greater efficiency
Costs are bound to rise in line with increased regulatory burden
PSPs express frustration over legacy service providers that are incompatible with their current tech stack and overburdening their business and resources. As they look for better solutions, they are concerned about losing efficiency in their AML processes.
Rather than wait for new regulation, the article encourages PSPs to implement strong AML and fraud controls proactively. It goes on to explain that the increased use of digital solutions based on AI can help improve AML/CTF measures.
"Banks, furthermore, are increasingly expecting the PSPs that form part of their network to have strong anti–money laundering (AML) and fraud controls in place."
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