Reduce AML Compliance Costs with KYB Solutions: 5 Benefits for Your Business
Looking to reduce the skyrocketing costs of AML compliance? Our KYB solutions can help! Discover the top 5 benefits for your business, including improved risk management and streamlined onboarding processes. Learn more about how our AML KYB solutions can benefit your company today.
In the world of fintech and crypto businesses, AML compliance is a crucial element of doing business. AML (Anti-Money Laundering) regulations help businesses avoid legal penalties and reputational damage.
However, the cost of maintaining AML compliance can be significant, especially as regulations become more stringent. In this article, we’ll explore the cost of being AML compliant, the true cost of AML compliance, and how to minimize AML compliance costs while maintaining regulatory compliance.
The AML Compliance Process
AML compliance involves identifying and mitigating money laundering risks through a set of regulations, policies, and procedures. The process includes KYC (Know Your Customer), KYB (Know Your Business), and transaction monitoring.
The Cost of Being AML Compliant
According to a recent report, the global financial services industry spends around €181 billion per year on financial crime compliance. Additionally, 50% of businesses surveyed by the Risk Management Association spend 6–10% of their revenue on compliance costs. The cost of AML compliance can be significant, and businesses need to ensure they’re managing these costs effectively.
The True Cost of AML Compliance
Businesses can choose to manage their AML compliance in several ways. However, each strategy has hidden costs that add up. For example, hiring and training an in-house compliance team can be expensive, while outsourcing to lawyers can also be costly.
Traditional AML providers like Dow Jones, Dun & Bradstreet (D&B), Refinitiv, and LexisNexis charge businesses for access to their proprietary databases and complicated systems. Meanwhile, using multiple AML, KYB, and KYC tools can create information overload and complicate the compliance process.
How to Minimize AML Compliance Costs
There are several ways businesses can minimize their AML compliance costs while maintaining regulatory compliance:
- Automate the Compliance Process: Automated AML solutions can help businesses streamline their compliance processes and reduce costs.
- Outsource to a Managed Service Provider (MSP): Outsourcing AML compliance to an MSP can be more cost-effective than hiring and training an in-house team.
- Use Modern AML Providers: Modern AML providers, like Vespia, offer more cost-effective solutions than traditional providers like Dow Jones, D&B, Refinitiv, and LexisNexis.
- Prioritize Compliance Efforts: Businesses should focus their compliance efforts on areas that pose the highest risk.
- Leverage Open-Source AML Tools: Open-source AML tools can help businesses reduce costs and achieve regulatory compliance.
In conclusion, AML compliance is a necessary cost of doing business for fintech and crypto businesses. However, with the right strategies in place, businesses can minimize their AML compliance costs while maintaining regulatory compliance.
By automating the compliance process, outsourcing to an MSP, using modern AML providers, prioritizing compliance efforts, and leveraging open-source AML tools, businesses can save on costs and avoid the pitfalls of non-compliance. Talk to our experts!
About Vespia
Vespia helps companies build trust with each other in a matter of seconds with the power of AI.
Vespia’s all-in-one business verification (KYB) and Anti-Money Laundering (AML) solutions enable growing businesses across multiple sectors to implement a faster and cost-effective verification and onboarding flow. Get started today!
About the author
Julia Ront is a leading figure in the Estonian RegTech scene, renowned for her expertise in developing innovative solutions to support regulatory compliance. As the CEO and Co-Founder of Vespia, Julia has dedicated her career to helping businesses navigate the complex and ever-changing landscape of compliance regulations.
