Each year, an estimated $800 billion to $2 trillion is laundered globally, accounting for 2%–5% of global gross domestic product. Major banks face hefty penalties for Anti-Money Laundering (AML) failures, with TD Bank and Citigroup among those fined recently. Compliance, including Know Your Customer (KYC) practices, is crucial but often neglected due to funding and resource challenges. Traditional banks struggle to keep up with evolving compliance standards, risking their reputation and market share. Technology, such as automated KYC processes and AI, is revolutionizing compliance operations. Challenger platforms are outperforming traditional banks by prioritizing compliance and leveraging emerging technologies. The key lesson learned is that compliance pays off in the long run. As disruptors continue to innovate, traditional banks must prioritize compliance to avoid being overtaken in the market. Read more AI-generated news on: https://app.chaingpt.org/news