The Rise of AML Compliance Pressure and the Role of eKYB

In the era of financial globalization and digitalization, financial institutions worldwide and in Vietnam in particular face mounting pressure to comply with anti money laundering regulations. According to the Basel Committee, global AML compliance costs have increased by 60% over the past five years, with violation fines reaching billions of dollars. In Vietnam, the State Bank has issued stringent regulations requiring banks to strengthen customer due diligence processes, especially for corporate clients.

Against this backdrop, electronic Know Your Business, eKYB, has emerged as a decisive tool to help financial institutions meet compliance requirements efficiently while optimizing costs. This article examines the current AML compliance pressure and the critical role of eKYB in addressing these challenges.

Current AML Compliance Pressure in the Banking Sector

Anti money laundering regulations in Vietnam have never been more rigorous. Circular 35/2019/TT-NHNN and related guidance require banks to perform comprehensive customer due diligence, including identity verification, source of assets, and verification of actual business relationships.

For corporate clients, due diligence is even more complex. Banks must verify not only the legal information of the company but also ownership structures, the ultimate beneficial owner UBO, and potential hidden linkages. Traditional verification processes typically take between seven and fifteen working days, demand significant manpower, and are prone to human error.

AML compliance costs account for as much as 10-15% of total operating expenses at major banks in Vietnam. In addition, legal risk from violations extends beyond monetary fines to severe reputational damage. Several banks have faced operational suspensions or restrictions on international transactions due to compliance lapses.

These realities demonstrate that manual due diligence methods are no longer compatible with the pace of digital finance and the intensifying compliance landscape. Financial institutions require a comprehensive, automated solution to ensure compliance while optimizing business efficiency.

eKYB as an Automated Corporate Due Diligence Solution

Electronic Know Your Business eKYB is an advanced technology solution that automates the entire process of corporate due diligence and verification. Unlike eKYC electronic Know Your Customer which focuses on individuals, eKYB concentrates on verifying complex organizational information such as business licenses, ownership structures, and legal relationships.

The eKYB workflow operates through automated steps. First, the system collects and digitizes corporate legal documents including business registration certificates, company charters, and related paperwork. Next, artificial intelligence AI and machine learning are applied to verify document authenticity and to detect signs of forgery or anomalies.

The system then cross checks information against official databases such as the national business registration portal, international watch lists, and sanctions lists. Notably, eKYB can analyze complex ownership structures to identify the ultimate beneficial owner, a critical requirement for AML compliance.

The benefits of eKYB are clear. Verification time is reduced from weeks to mere minutes. Accuracy increases to approximately 99.5% by eliminating human error. Operational costs fall substantially. Importantly, eKYB can integrate seamlessly with core banking systems and CRM platforms, creating a fully digitized and unified customer onboarding process.

Business Benefits from eKYB Deployment

Implementing eKYB delivers measurable business value for financial institutions. Corporate customer onboarding time is reduced from seven to fifteen days to just five minutes through mobile operations, creating a significant competitive advantage in customer acquisition. From a human capital perspective, eKYB frees compliance teams from manual tasks, allowing them to focus on higher value risk analysis activities. Customer experience improves markedly as businesses can complete account opening and begin using banking services on the same day. This is crucial in a modern business environment where speed determines success. eKYB also ensures continuous 24 hour seven day compliance by automatically updating regulatory changes and watch lists. This capability substantially reduces the risk of violations and related penalties.

FPT eID as a Leading eKYB Provider in Vietnam

FPT eID developed by FPT Corporation has established itself as one of the leading eKYB solution providers in Vietnam. Built on advanced AI technology and rich data sources, FPT eID delivers a comprehensive solution for corporate due diligence needs of financial institutions.

FPT eID’s eKYB stands out for its ability to verify a wide range of corporate documents from business registration certificates and establishment decisions to complex legal instruments. The system employs Optical Character Recognition OCR combined with AI to read and validate information with high accuracy while detecting forgery indicators through analysis of physical document features. FPT eID also supports real time sanction list screening. The platform is continuously updated with PEP Politically Exposed Persons lists, OFAC US sanctions, EU sanctions, and other blacklists to ensure full compliance with international requirements.

FPT eID has achieved ISO 30107-3 certification for biometric anti spoofing, confirming the solution’s security and reliability. The system also complies with international security standards such as ISO 27001, ensuring robust protection of customer data. Many leading banks in Vietnam have successfully deployed FPT eID eKYB and reported an over 80% reduction in onboarding time and a 70% reduction in operating costs.

Conclusion

The increasing pressure of AML compliance is an undeniable reality for financial institutions. In this context, eKYB is not only a technological solution but also a core business strategy that enables banks to ensure compliance while creating sustainable competitive advantage.

Banking leaders should recognize that investing in eKYB is a strategic investment with long term returns. Delays in digital transformation expose institutions to compliance risk and severe loss of competitive edge.

FPT eID with its advanced eKYB solution and proven market experience in Vietnam stands ready to partner with financial institutions on their digital transformation journeys. Contact FPT eID for detailed consultation and a product demonstration to begin building a safer and more efficient financial future.