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As criminals across the world are getting smarter in committing money laundering and other financial crimes, Financial institutions and international regulatory bodies have also tightened the AML regulations. Adaptation of advanced AI and ML technologies in monitoring and detecting suspicious transactions and customer identification shows the regulatory bodies’ commitment to combat money laundering crimes. 

Among AI Technologies, the biometric AML screening solution is the one that uses unique human biological traits to verify the customer’s identity during the onboarding process. The technologies used in the biometric AML are widely used facial recognition, fingerprint scanning, voice recognition, and Iris scanning. 

What is Biometric AML and Why Should Businesses Adopt It?

When Firms verify their customer using biological traits such as facial recognition, fingerprint scanning, Iris scanning, and voice recognition instead of the traditional verifying system, this means the organization is using the biometric AML solution for the customer verification process in the fight against money laundering.  

Is biometric AML helpful for organizations in the fight against financial crimes? 

Biometric AML is helpful for organizations because regulatory bodies demand more robust AML practices, and biometric solutions help businesses reduce the risk of onboarding fraudulent or criminal clients. 

Why should Business Adopt biometric AML Solutions?

• Enhanced Security: Biometrics AML including facial recognition, and fingerprint scanning provide a higher level of identity verification to financial institutions that make it harder for fraudsters to bypass the system.
• Improved Compliance: Integrating biometric verification, monitoring, and screening systems into their AML programs can meet regulatory requirements and avoid penalties.
• Reduce chances of Money Laundering: Since biological traits that are used for biometric verification are unique to each individual, it significantly reduces the likelihood of identity theft or impersonation during transactions.

Top 5 Industries that benefit from Biometric AML Checks.

1. Banking & Financial Services

To move the illicit funds, the criminals have to use the financial institutions to send it to other jurisdictions using different techniques. Therefore, financial institutions are at the forefront of adopting biometric AML technologies.  

The main reason is that banks need to face stringent regulatory requirements to make sure they monitor and screen all the transactions being made within their organization. 

However, Biometric solutions enable banks to securely verify customers during onboarding, reducing the risk of fraud and identity theft. 

2. Cryptocurrency Exchanges

Another more volunteer industry to money laundering and other financial crime is the cryptocurrency exchanges businesses. Because they operate in high-risk environments where financial crimes like money laundering and fraud are prevalent.  

Biometric verification helps exchanges ensure that they are making business relations with those who they claim to be. It reduces the risk associated with anonymous or fake identities. Given the regulatory pressure on cryptocurrency platforms to comply with AML/CFT (Counter Financing of Terrorism) regulations, biometric solutions offer robust compliance measures.

3. FinTech Startups

FinTech companies always try to give something unique and innovative when it comes to the financial sector by offering innovative digital solutions. because they interact with financial institutions, they face similar regulatory scrutiny as traditional financial institutions, especially around AML and KYC processes.  Therefore, the FinTech industry can provide a more efficient and seamless onboarding process while maintaining compliance requirements. 

4. Healthcare

Like financial institutions, there are always higher chances of indulging in money laundering and financial crimes when medical organizations deal with insurance claims and other payments. How could a biometric AML solution help the healthcare sector avoid indulging in money laundering and other crimes?  

As Biometric AML solution uses biological traits to verify the customer identity and can help healthcare organizations verify patient identities and prevent fraud in claims and billing with the real-time transaction monitoring system. 

5. Real Estate

Among all three stages of money laundering, the integration stage is most commonly used by investing in the real estate business. Criminals try to invest in buying real estate, luxury houses, and cars to ensure that the money obtained for such property is obtained through legal sources. However, with a Biometric AML solution in place, real estate agents and firms can comply with KYC and AML regulations by verifying buyers’ and sellers’ identities. 

Biometric AML solutions enable real estate agents and firms to comply with KYC and AML regulations by verifying buyer and seller identities. This helps prevent the use of illicit funds in property purchases and ensures that transactions are compliant with local and international regulations.

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