As we enter 2023, the compliance industry is evolving in several ways. In this post, we'll explore the top compliance industry trends for 2023 that can help you stay ahead of the curve.
- Firms align technology advancements with organizational transformation
In 2023, companies are expected to continue to align their technological and organizational transformation. This means that businesses will need to ensure that their compliance technology is integrated into their overall organizational strategy. Companies that are successful in aligning these two elements will be able to streamline their compliance processes, reduce costs, and minimize the risks of non-compliance.
- Firms are transitioning from AI exploration to implementation for detecting financial crime risks
The use of artificial intelligence (AI) in financial crime risk detection has been growing rapidly in recent years. In 2023, we can expect to see firms move from exploring the potential of AI to implementing it in their compliance processes. This will involve greater investment in AI technologies, such as machine learning and natural language processing, to help identify potential risks and improve the efficiency of compliance tasks.
- PEP screening is becoming more sophisticated
Politically Exposed Person (PEP) screening is a critical aspect of compliance, as it helps firms to identify high-risk individuals who may be involved in money laundering or other illicit activities. In 2023, we can expect to see increased sophistication in PEP screening technology. This will include the use of advanced analytics and data visualization tools to help companies more accurately identify and assess PEP risk.
- KYB solutions are adapting to meet market demands
Know Your Business (KYB) is becoming increasingly important for companies, as they seek to better understand their corporate clients and minimize the risks of non-compliance. In 2023, we can expect to see KYB solutions evolve to meet the changing needs of the market. This will include greater emphasis on real-time data and improved data quality, as well as increased automation to help reduce the time and costs of compliance tasks.
Overall, these trends highlight the ongoing evolution of the compliance industry. Companies that are able to stay ahead of the curve and embrace these trends will be better positioned to manage the risks of non-compliance and succeed in the dynamic and ever-changing compliance landscape.
