Real-time AML & KYC in a globalised financial system -

With instant payments and cross-border fintech products, there’s increasing pressure on firms to enhance real-time Anti-Money Laundering (AML) and Know Your Customer (KYC) capabilities. A key challenge in this area is keeping up with regulatory expectations (e.g., FATF recommendations) and leveraging AI for better monitoring without breaching privacy laws.

Why real-time AML and KYC matter today

There is a growing need for faster compliance in the global financial world. Today money moves faster and across more borders than ever before. With this speed it opens the doors to new risks, from money laundering to fraud, that traditional compliance methods can’t keep up with. Real-time AML and KYC help financial institutions detect suspicious activity and verify customer identities instantly, protecting both the business and the financial system from harm.

How real-time AML and KYC work

Real-time systems use smart technologies like artificial intelligence, machine learning, and biometric ID checks to verify customer information and monitor transactions as they happen. These tools scan for high-risk behaviour and flag unusual activity – all in seconds. This allows banks and fintech’s to act quickly and stop threats before they escalate.

The challenges of going real-time

While the benefits are clear, moving to real-time AML and KYC isn’t always easy. Financial firms must deal with different rules in different countries, strict data privacy laws, and the cost of upgrading old systems. It also takes time to train staff and test new technologies. Despite these hurdles, more firms are making the shift as regulators push for faster, smarter compliance.

The benefits for banks and customers

Not only does Real-time AML and KYC help with compliance they improve the customer experience too. It streamlines the customer experience by minimising unnecessary delays and holds due to suspicious activity. For the bank, it means better risk management, lower fraud losses, and a stronger reputation with regulators and clients alike.

As financial crime becomes more frequent and global transactions grow rapidly, real-time AML and KYC capabilities are no longer optional, they’re essential. By investing in smarter, faster compliance tools, financial institutions can stay ahead of risk, meet regulatory expectations, and deliver a better experience to their customers.

By Eniola Badru, Legal and Regulatory Analyst, Corlytics