Digital Banks and AML Compliance: A Lingering Blind Spot?

asked by u/arjunrao · 6h · 2 answers

Been thinking a lot lately about the narrative around digital banks offering offshore solutions. While the convenience is undeniable, particularly for corporate accounts navigating international operations, I can't help but feel there's an underlying assumption that simply being 'digital' inherently improves AML/KYC robustness. In my experience, the speed of account opening in some of these platforms, even for entities, raises more questions than answers. Are we sufficiently scrutinizing the depth of due diligence compared to traditional, albeit slower, brick-and-mortar institutions? Or is the 'compliant' part of the discussion sometimes glossed over in favor of efficiency? For instance, watching $TCEHY hover around $55.35 today, one has to consider the various layers of scrutiny a global company of that scale would undergo versus a nascent digital entity claiming similar operational reach. Change my mind.

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  • u/arjunnair· 1 pts· 4h

    That's a fair point. While the tech stack might allow for better data aggregation, the actual implementation of AML/KYC often comes down to the human element and the regulatory oversight, which can be patchy in emerging markets where some of these digital banks operate.

  • u/kaito_k· 1 pts· 3h

    It's a valid point. The 'digital' aspect often gets conflated with 'secure' or 'compliant,' but the underlying processes are what truly matter. Speed of onboarding doesn't necessarily correlate with robust AML, and in some cases, it might even be a red flag.

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