The main stage panel, led by Warren Russell, EVP Identity Solutions at FullCircl, served as the focal point of the event. Industry insiders Helen McHugh, BDM at Transact Payments, Stephen Frame, CCO & MLRO at Caxton, and Phil Seymour, Senior Risk and Compliance Officer at Payabl, accompanied Russell.

The topic of discussion was how financial institutions (FIs) may use technology to be compliant in the face of the increasingly complex regulatory landscape in the UK and Europe. The discussion included methods for FIs to remain regulatoryly proactive, the potential influence of AI on KYC procedures, and striking a balance between consumer expectations and KYC compliance.

The Regulatory Outlook for 2024: A Busy Year in Store

Stephen Frame noted that in terms of regulatory evolution, 2024 will be unprecedented. FIs are getting ready for a revolutionary time due to the plethora of regulations that are coming soon, including those related to AML, KYC, PEPs, penalties, and Ultimate Beneficial Ownership. Important laws such as the Financial Services and Markets Act and the Economic Crime and Corporate Transparency Act will also be implemented in this age, along with major revisions to current regulations and increased supervision of cryptocurrencies and environmental, social, and governance issues.

The Financial Conduct Authority (FCA) has presented comprehensive reform recommendations designed to improve the integrity of the financial system and strengthen the UK's standing as a leading center for investment. Because of this proactive regulatory strategy, financial institutions must also take a similarly innovative approach to compliance.

The Changing Function of Conformance

The panelists' unanimous conclusion was that compliance is becoming an essential component of financial operations rather than merely a ceremonial duty. This shift necessitates moving away from static checklists and toward more flexible, tech-driven compliance approaches in order to outwit sophisticated financial crimes and stay ahead of regulatory developments.

The increasing obsolescence of manual KYC processes is highlighted by significant shortcomings in AML and compliance initiatives. Data analytics, digital identity verification, and continuous KYC/B (eKYC/eKYB) are examples of today's best practices that reduce the risk of financial crime and improve client experiences by streamlining onboarding procedures.

Juggling Customer Experience and Compliance

FIs are predicted to further incorporate technology into AML and KYC procedures in 2024 as they strive to strike a compromise between meeting strict regulatory standards and providing excellent customer service. In order to meet rising customer demands and accommodate changing rules, this balance calls for a larger expenditure for technology.

The panel emphasized the need for FIs to focus their compliance strategy on the user experience and emphasized that KYC transformation is critical to lowering customer onboarding complexity. Technological developments in data analytics, digital identity verification, and automation play a critical role in reducing the need for manual intervention and promoting better customer experiences.

The Need for FI-RegTech Collaborations

Financial institutions are urged to form strategic partnerships with technology partners who possess both cutting-edge technologies and in-depth industry knowledge in order to meet the plethora of new and changing regulatory requirements. As envisioned by the FCA, these relationships are essential for developing proactive compliance strategies, improving client experiences, and building a secure financial environment.

RegTech has developed into a crucial partner for financial institutions (FIs), utilizing AI and machine learning for KYC and AML procedures to confirm identities, optimize workflows, and successfully tackle financial crimes. To create a compliance best practice environment, choosing a RegTech partner with both technological aptitude and industry knowledge is still essential.

W2 by FullCircl: A Revolutionary Change in 2024 Compliance

By 2024, W2 by FullCircl's automated KYC, AML, anti-fraud, and identity verification technologies will have completely changed financial industry compliance. It provides FIs with the thorough support, instruction, and direction they need to successfully navigate the regulatory environment as a member of the FullCircl group.