Commercial lenders face heightened global AML expectations, especially around KYB, UBO verification, and ongoing monitoring. This article outlines key obligations across the U.S., UK, Canada, EU, and Australia—and how iComply helps automate compliance for business loan onboarding and risk management.
With varying standards across borders and complex corporate structures at play, automation is no longer optional – it’s essential.
AML and KYB Expectations for Lenders
United States
- Regulators: FinCEN, OCC, FDIC, state banking departments
- Requirements: BOI reporting under the Corporate Transparency Act, CDD Rule compliance, SAR filings, and sanctions screening
United Kingdom
- Regulator: FCA, PRA
- Requirements: KYB, UBO verification, transaction monitoring, and enhanced due diligence (EDD) for high-risk entities
Canada
- Regulator: FINTRAC
- Requirements: Business client verification, beneficial ownership discovery, ongoing monitoring, and STRs for suspicious transactions
European Union
- Regulators: National regulators under AMLD6 framework
- Requirements: KYB and UBO collection, EDD for complex structures, and real-time transaction tracking
Australia
- Regulator: AUSTRAC
- Requirements: AML/CTF compliance for non-bank lenders, UBO transparency, and reporting obligations for high-value transactions
Lending-Specific Risk Factors
1. Opaque Business Structures
LLCs, trusts, and holding companies often obscure real ownership.
2. High Application Volume
Manual KYB checks don’t scale with demand.
3. Evolving Regulatory Standards
CTA in the U.S., EU AMLA rollout, and FATF alignment create shifting expectations.
4. Loan Fraud and Misuse of Funds
Inadequate checks can lead to reputational damage, defaults, and penalties.
How iComply Supports AML in Lending
iComply provides a configurable platform that simplifies KYB, UBO discovery, and AML monitoring for commercial lenders.
1. Streamlined KYB Onboarding
- Verify legal entities through registry and document checks
- Identify directors, shareholders, and authorized signatories
- Localized workflows and multilingual support
2. Beneficial Ownership Mapping
- Visual UBO trees across jurisdictions
- Automated detection of nominee owners and shell structures
- Apply configurable thresholds for deeper review
3. AML and Sanctions Screening
- Real-time screening of businesses and individuals against global watchlists
- Continuous monitoring with refresh cycles and trigger-based reviews
- Risk scoring by industry, geography, and transaction patterns
4. Case Management and Reporting
- Unified dashboard for all onboarding and screening activity
- Audit-ready logs and regulatory export templates (FinCEN, FCA, AUSTRAC, etc.)
- Track escalations, reviews, and resolution timelines
Case Insight: SME Lender in the UK
A UK-based lender adopted iComply to digitize business borrower onboarding. Within 6 weeks:
- Cut average application processing time by 45%
- Flagged 3 UBO anomalies across high-value applicants
- Passed an FCA review of UBO verification procedures and audit trails
Final Word
Commercial lenders must scale responsibly. Those who embrace KYB automation now can:
- Reduce onboarding friction
- Improve risk visibility
- Meet cross-border AML expectations with confidence
Talk to iComply to see how we help lenders automate 90% of compliance tasks—so your team can focus on building relationships, not chasing paperwork.
