In the constantly evolving world of financial crime compliance, Know Your Customer (KYC) processes remain both indispensable and increasingly complex. As institutions face growing regulatory demands, exploding volumes of data, and a constantly shifting threat landscape, artificial intelligence (AI) has emerged as a powerful tool to automate and enhance due diligence.

In the pursuit of Know Your Customer (KYC) and broader financial crime and third-party risk compliance, open-source intelligence (OSINT) has emerged as a vital weapon. By definition, OSINT refers to data collected from publicly available sources, such as news websites, blogs, company registries, court databases, and social media. Its value lies in its ability to surface risk-relevant information that traditional data providers may miss, especially in relation to reputational, political, legal, or ESG-related concerns.

Artificial Intelligence (AI) is rapidly transforming compliance functions, with adverse media screening among its most high-impact use cases. By automatically scanning open-source data for reputational risks, financial crime links, or ESG red flags, AI-powered tools promise to enhance Know Your Customer (KYC) and supplier screening processes and reduce human workload. But what happens when AI gets it wrong?

In today’s globalized compliance landscape, adverse media screening plays a critical role in identifying potential risks associated with individuals and entities. However, a fundamental challenge arises from how different legal systems approach privacy and transparency, particularly when it comes to naming individuals in media reports.

In today’s complex regulatory environment, adverse media screening (AMS) plays a critical role in Know Your Customer (KYC), Anti-Money Laundering (AML), and Counterparty Risk Management. Financial institutions, multinational corporations, and other regulated industries must ensure that they are not unknowingly engaging with individuals or entities involved in criminal activities, financial misconduct, or reputational risks.

In the modern complex regulatory environment, Know Your Customer (KYC) screening is a cornerstone of compliance for financial institutions, corporations, and regulated industries.

The role of Know Your Customer (KYC) analysts has undergone a profound transformation over the past decade, shaped largely by advances in technology, particularly artificial intelligence (AI) and more recently, Generative AI. Historically, the job of a KYC analyst revolved around manually processing large amounts of data, reviewing customer profiles, performing ID verifications, cross-referencing watchlists, conducting adverse media screening, and ensuring compliance with ever-changing regulatory standards.

As the CCO of smartKYC, I’ve been at the forefront of innovation in due diligence and Know Your Customer (KYC) screening processes for many years.

In a recent webinar session hosted by Ian Lawless, Head of Content Partnerships and Event Director at Procurement Leaders, Dermot Corrigan, CEO discussed how a combination of natural language processing and generative AI can do all the heavy lifting associated with due diligence discovery at both onboarding and during the lifetime of the relationship in real-time, preventing risks from gathering momentum and developing into a full-blown crisis.

We have won the award for ‘Best Proposition for AI, Machine Learning’ in the Data Management Insight Awards Europe 2023

We have won the award for ‘AI Technology of the Year’ in the 2023 Business Awards UK’s Technology Awards!