The increased need for AML systems integration into business finance was evident in 2020. Today, AML software is about to become a basic necessity for vendors and retailers worldwide as it’s a matter of financial security.
What is AML Software?
Anti-Money Laundering software utilizes online technology in order to help financial institutions establish automated transaction monitoring and detect suspicious operations. The algorithm can detect and report potential laundering transactions to a human operator to trigger an immediate investigation.
The fact is that the AML regulations in the US, UK, EU, and other developed economies are extremely complex and exceed the processing abilities of human AML officers. Regardless of an institution’s size, a computer-automated AML system saves huge amounts of time and costs on customer (exterior) and employee (interior) transactions control.
The Benefits of AML Software for Business
In this case, the benefits are the features of AML Software and the problems it solves without human labor. The main features include:
- Name Screening – the US and other countries have lists of customers and entities prohibited as business partners. Still, it’s impossible to isolate them from attempting to do business with your institution. AML software can detect and flag these entities and persons who have the Politically Exposed Person status or those under adverse media scope.
- Compliance monitoring – this feature is used to track the implementation of compliance requirements on a 24/7 basis, including employee training and audit records management and tracking of reports submitted to supervisory authorities.
- Transaction monitoring – AML software of this type detects suspicious customer transactions based on account activity information and the overall transaction history. The Suspicious Activity Report (SAR) will be produced and submitted to the US FinCEN or another financial crime bureau in your country.
- Currency Transaction Reporting (CTR) – you can adjust the software to report large transactions and suspicious sequences of small transactions.
To integrate an AML software solution into an organization, you have to employ a trained AML officer who will initiate the integration process and adjust the system. For an officer, it’s highly important to be able to:
- Select and adjust the right type of AML software product.
- Ensure implementation of the latest security protocols.
- Organize the reporting process according to the local regulations.
- Update the personal knowledge base through regular professional development programs.
You can integrate AML solutions into ready-made and custom CRMs, ERP applications, and billing tools. The connection is usually established with the use of RESTful API or REST API that obtains access to the data via HTTP requests. This way, your entire digital business ecosystem will function in a closed cycle with an AML app and you won’t lose any important detail.
Fight Against Crime
By integrating an AML software solution, you don’t only enhance the financial security of your organization but also help the government to trace malicious entities and investigate crimes. The more intruders are punished yearly, the more knowledgeable our AML solutions become. This means higher security and fewer losses for all financial establishments. AML legislation is extremely complex in any country, so automatization will cut costs significantly.