Are you wasting time going through transactions to check for money-laundering trends? Any compliance head in a financial institution will agree that having your AML monitoring workflows automated is the best thing that can happen.
According to Jane Doe, the Director of Compliance, “The manual process of monitoring may be time-consuming. With the assistance of technology, one can efficiently and proactively continue monitoring a larger volume of transactions.”
It depends on the choice of the best technology solution for continuous AML monitoring. There are numerous options available to help with this.
The best approach is to understand your compliance needs and high compliance priorities so that you find one that will suit your business environment.
This article gives you a checklist to help you make the right choice to automate your workflows and enhance your financial crime risk management through Ongoing AML monitoring.
Choosing Technology Solutions
When you are searching for a technology to automate continuous AML monitoring, identify different AML solutions available in the market.
Look at the tools useful in screening the parties for AML, tracking transactions across various sources, and generating periodic AML screening reports.
Recording some of the shortlisted AML compliance services will be useful for the following reasons.
Based on current statistics, the AML software market size is anticipated to grow to $4.5 billion by 2028.
Bonus: Get to know more about the automation of your continuously running AML Screening processes. Book a demo to assess the opportunities.
Consider Your Priorities First
To help you decide which AML technology to adopt, you have to determine which goals you have for AML monitoring in the long term.
Does your organization require immediate notification of potentially fraudulent money drawing transactions? Use of high-risk customers? Automating the report on currency transactions?
According to a report in 2023, 75% of institutions have shifted focus to real-time monitoring. This decreases the number of consequences and increases the chances of discovering a solution that will bolster an institution’s anti-money laundering program.
Monitor Different Data Sources
An ideal AML solution can capture information from several systems, such as the wire transfer system, deposit slips, and customer databases.
It needs to be compatible with your base banking applications and screening records. Centralized ongoing AML screening of a financial transaction detects money laundering patterns.
The FATF 2023 report said an average of $2 trillion is believed to be laundered across the world every year. Countries need to implement stringent measures to combat anti-money laundering.
Screen for Known Threats
An AML technology is capable of continuously scanning transactions and clients against such threats as sanctions lists, criminals, and fraudulent names.
It assists in the constant monitoring of AML cases and helps identify suspect matches and money laundering alerts.
According to the survey conducted in 2023, 25 percent of the case study financial institutions faced high compliance costs because of bad monitoring.
It calls for the development of browser-based solutions reflecting high-risk patients for intervention purposes.
Detect Unknown Risk Patterns
Look for a solution with the machine learning algorithm to identify new money laundering patterns and behavior.
Modern scientific research reveals that the approach can raise the detection level by approximately 80% in comparison with basic methods.
The technology can identify new suspicious signs of previous transactions in continuous AML screening of prior transactions. This is helpful to anti-money laundering due to increased apprehension of new financial crimes.
Generate Risk Scoring Reports
Select a tool that generates reports of risk scoring based on constant scanned transactions for AML Services.
By 2024, emerging analysis shows that 60% of financial institutions discover an elevated level of suspicious activity alerts.
This offers a means of highlighting the suspicious cases for further analysis by rank, depending on the risk level as displayed on the reports.
To extract specific risk indicators, look for configurable templates that can do this. The reports also showcase risk-based compliance to regulators when conducting audits.
Streamline Manual Processes
Automation can reduce the volume of activities previously harvested manually to monitor AML constantly. In 2023, the compliance cost can be cut down to a third.
In practice, paperwork and approvals typical for process bottlenecks create an additional layer of complexity, making it difficult to stay compliant.
Look for a system that has built-in capabilities to automatically handle the way compliance teams manage their processes, data, and workload.
Evaluate Technology Partners
Whenever choosing a match for your AML requirements, evaluate technology solution sellers. Look at their experience in the area of financial crime as well as the success achieved for the clients.
Ask for demos to know if their tool is compatible with your systems or not. They must also check on study support commitment and the policies regarding upgrades before narrowing down their choice.
Some current industry reports indicate that about three-quarters of the financial institutions disclosed that they have integrated technology to improve their AML compliance programs. This will create the best technology that periodically supports AML compliance.
To learn more about how to select your AML technology best, you can ask for a Free Compliance Consultation with one of our BSA/AML specialists.
