Effective anti-money laundering processes are as crucial as ever to institutions’ brands, and the pace of new AML regulations is not slowing down according to a new Forrester Research report, titled “The Top Trends Shaping Anti-Money Laundering in 2020.” 

Andras Cser, principal analyst at Forrester and author of the report, wrote that the shift to online transactions has heightened the stakes when it comes to know-your-customer processes. “Firms must maintain effective AML risk scoring and case management to meet the increased customer acquisition without making significant investments in additional human analysts and investigators,” he wrote.

Here are the top four takeaways from the Forrester report:

AML professionals are rethinking identity verification
Financial services pros need to know if someone is creating a duplicate account, and identity resolution services from vendors like Amperity and Axciom are helping sort this data, according to Forrester. AML personnel are using new methods for identity verification, including identifying phone numbers, emails and devices to ensure a transaction isn’t fraudulent. Behavioral biometrics, or using factors like keystrokes and mouse movements to identify legitimate users, are also helping with AML, while the report stated text capture solutions are making document management an appealing tool to fight fraud.

Word-of-mouth will become a relic
According to Forrester, many institutions fight fraud by reacting to the types of fraud it has seen in the past, a “largely oral history-based” approach that only accounts for known fraud techniques. This system doesn’t help banks and credit unions fight emerging tactics used by criminals. “Vendors are taking heed and are planning to provide productized and regularly managed databases and/or cloud repositories of new money laundering and fraud taxonomies and patterns,” the report read. 

Institutions are consolidating fraud and AML
The report used the term FRAML to describe the combination of fraud and AML efforts at institutions. “FIs see high cross-correlation between the two areas; usually fraud precedes money-laundering activities and is very often committed by the same individuals,” the report read. “FRAML allows for a single-pane-of-glass view across all cases.” 

See also: The future of banking is linked to trust, Forrester says

Robotic process automation can be a lifeline
According to the report, robotic process automation can cut costs when it comes to managing menial tasks. Forrester noted vendors like Blue Prism and WorkFusion both offer robotic process automation solutions. “RPA solutions can also speed up the data integration process and provide data connectivity to hitherto hard-to-get-to data sources,” the report read.

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