What is KYC automation?

KYC automation uses AI to instantly verify entity registration, map ownership structures, and screen against PEP and sanctions databases, replacing weeks of manual verification.

How does AI help AML compliance?

AI screens entities against 450+ sanctions lists, PEP tiers, and negative media, reducing false positives through smart fuzzy matching and providing full audit trails.

Is Legalica compliant with FATF?

Yes, Legalica's checks are designed to support a risk-based approach in compliance with the Financial Action Task Force (FATF) recommendations and EU Directives.

AML & KYC

Compliance Officers & MLRO AI Solutions

Automate AML screening, KYC verification, sanctions monitoring, and regulatory reporting across 324 jurisdictions.

See Compliance Tools Run Test KYC

The compliance challenge in 2026

Regulatory complexity has never been greater. The EU AI Act, 6AMLD, DORA, NIS2, and a patchwork of national implementing regulations create overlapping obligations that even dedicated compliance teams struggle to track. Manual screening processes can't scale. Spreadsheet-based monitoring misses changes. And the cost of non-compliance — fines, license revocation, reputational damage — has never been higher.

Legalica addresses these challenges with an integrated compliance platform that automates the routine, flags the critical, and documents everything for the auditor.

Integrated compliance capabilities

Automated AML Screening: Screen individuals and entities against 450+ global watchlists — OFAC, EU Consolidated List, UN Security Council, HMT, Interpol — with sub-second response and fuzzy name matching. Every Identity Hub search triggers automatic sanctions, PEP, and adverse media checks.

4-Tier PEP Classification: Go beyond binary PEP/non-PEP labeling. Our granular classification (PEP-1 through PEP-4) with Relative and Close Associate mapping gives you the nuance regulators expect for risk-calibrated due diligence.

Composite Risk Scoring: Algorithmic risk assessment weighing jurisdiction risk (FATF status), sanctions exposure, PEP classification, adverse media density, UBO complexity, and industry risk — producing a 0-100 score with clear audit rationale.

Continuous Monitoring: Daily automated re-screening of your client portfolio against updated watchlists, with real-time alerts for new matches, status changes, or adverse media.

Regulatory-Grade Reporting: Generate court-admissible KYC reports — from 2-page Snapshots to 20-page Enhanced Due Diligence reports — in 187+ languages with full source attribution, timestamps, and QR code validation.

Compliance coverage by regulation

Regulation	Legalica Capability
EU 5AMLD/6AMLD	Full CDD/EDD workflow, UBO identification, PEP screening
FATF Recommendations	Risk-based approach, ongoing due diligence, suspicious transaction monitoring
US BSA/Patriot Act	OFAC screening, FinCEN reporting support, 314(a) compliance
UK MLR 2017	Customer due diligence, ongoing monitoring, record keeping
EU AI Act	AI system risk classification, transparency obligations, human oversight documentation
GDPR	DPA generation, Article 30 records, breach notification workflows
DORA	ICT risk management documentation, incident reporting templates
CCPA/CPRA	Consumer rights request handling, privacy policy validation

Audit-ready by design

Every compliance action in Legalica is immutably logged:

Timestamp (UTC + local timezone)
User identity (Firebase Auth UID)
Action type (screen, report, override, alert acknowledged)
Input parameters and output results
Retention: 10 years (configurable per jurisdictional requirement)

Compliance coverage that scales

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