Anti-Money Laundering Software: A Cutting-edge Approach for Money Laundering Detection


What is AML Software?

Anti-money Laundering (AML) software is the newest shield against financial crimes. This software helps legal and financial institutions to combat crimes related to finance. The AML software helps such institute to detect, investigate, and report any kind of money laundering activities via automated processes.

The AML software has become the top-priority for any institution’s AML strategy because of the complexity of the legislative processes. The regulatory compliance obligations imposed by AML legislation generate vast amounts of data pertaining to individual customers and transactions, which is beyond the ability of human AML officers to manage. This is where the indispensability of AML software becomes relevant. The high-tech enabled AML software can process such huge amounts of data with amazing swiftness and accuracy.

How does AML Software function?

AML software platforms diversify when it comes to practical application. Although the different types of software platforms vary in functions and capabilities they offer, AML software falls into four main categories:

Name screening: Certain countries across the globe maintain ‘blacklists’ of high-risk individuals and entities with whom the financial institutions are not permitted to do any kind of business. With the AML software, such blacklisted customers can be identified in an instant and flag them. Apart from this, AML software helps in screening to identify Politically Exposed Persons, and individuals receiving adverse media exposer.

Transaction Monitoring: Suspicious patterns in customer transactions can be detected by using this category of AML software. It keeps track of all the customer’s transaction history and the specifics of certain account holders.

Currency Transaction Reporting:  This AML software focuses on transactions involving huge amounts of cash, or multiple small transactions aggregating a large amount of cash.

Compliance: AML software also helps in the everyday implementation of compliance requirements. It helps in keeping detailed records of employee training and scheduled audits, and track reports submitted to financial authorities.

Importance of AML Integration in Financial Institutes

There are various factors which make it a top priority for the financial institutes to adopt the AML software. The factors recorded in the last few years are:

Regulatory action: In the recent years, the enforcement actions related to AML have been on the rise. Hence, the implementation of AML software has taken a front space.

Evolution of Threats: Criminals are opting for smarter means to remain safe and undetected. Lone-wolf terrorists make smaller transactions to purchase weapons and vehicles which keeps them undetectable.

Cyber-enabled criminals use sophisticated technology to steal security information and stay connected with their global community.

The growth of E-commerce market has made it easier for the criminals to act legitimate online traders or payment providers.

Reputational risk: Money laundering incidents become a huge reputational risk for the financial institutions. To put simply, the institutes lose their value in the market and confront huge losses.

Rising costs: The conventional AML process is less efficient and requires a significant manual effort. In 2018, it cost US financial services around $25.3B to manage money laundering risk.

Poor customer experience: It becomes a lengthy process for the customers to manually fill and verify all the information. In this era of smartphone and online dependency, AML software can make the process more convenient and error-free for its customers.

Best AML Software for your business

As per a report by Big Market Research, some of the best AML software for any financial institutes are:

  1. Oracle Financial Services Anti-Money Laundering
  2. Thomson Reuters
  3. Fiserv
  4. SAS
  5. SunGard
  6. Experian
  7. ACI Worldwide
  8. Tonbeller
  9. Banker’s Toolbox
  10. Nice Actimize
Please follow and like us: