Compliance in fintech is vital due to the potential for hefty fines if not managed correctly. Organizations have begun delegating compliance responsibilities, heightening reliance on technology, particularly artificial intelligence, to streamline processes. The real innovation lies in integrating blockchain and tokenization technologies, which have not yet been widely adopted in traditional finance. Fundamental principles of fintech compliance center around anti-money laundering (AML) and know your customer (KYC) protocols, mandatory since the 1970s, requiring extensive paperwork, background checks, and ongoing transaction monitoring.
Compliance is important in fintech, as improper handling can result in significant fines. Organizations often delegate compliance responsibility, creating a reliance on technology for efficiency.
Integrating artificial intelligence streamlines compliance processes in fintech. However, true compliance innovation relies on incorporating blockchain technology and tokenization.
Fintech compliance focuses on anti-money laundering (AML) and know your customer (KYC) screenings. These extensive checks have been mandatory since the 1970s.
AML and KYC procedures require extensive paperwork and rigorous background checks, necessitating continuous monitoring of transaction activities to detect any suspicious actions.
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