With sanctions regulations becoming stricter, and the penalties for non-compliance with AML becoming steeper each day, a cost-effective compliance system is the need of the hour. A business or company needs to be compliant with the AML regimes, as well as be in sync with its risk management policies and processes. At the same time, the fast-evolving FinTech landscape also seeks to automate their AML practices to scale their business processes faster and face emerging challenges.

Benefits of automation in today’s high-risk business environment

Every business is looking for ways to simplify the onboarding process for better customer experience while following the laws.

From the point of customer onboarding or establishment of a new business relationship, the compliance requirements set in with KYC, CDD data collection, screening against sanctions, PEPs, UBOs and Adverse Media checks. Often customer risk scoring is also established as a business risk management policy.

While a seamless and rapid screening kicks off the process, AML compliance does not end here. There is a need for constant transaction monitoring, sorting based on suspicious activities as well as reporting, as per the regulatory norms.

This involves sifting through voluminous data, culled from global databases in real-time. As every country has its own AML/CTF regime and every regulated entity a different set of rules for compliance, this is a highly complex task

The obvious solution is an automated AML that adds value to the tasks of the army of analysts and investigators, ensuring compliance.

automated aml

A. Increases operational efficiency

Automation of the compliance processes increases the efficiency of operations, both at the time of onboarding as well as during the process of CDD or EDD. It frees up employees from the tedious and resource-intensive tasks of manually reviewing tons of data, enabling them to focus on higher-value activities.

B. Faster decision-making

The time to action on possible fraudulent transactions is reduced. Thousands of transaction alerts can be investigated in real-time for instant decisions.

C. Seamless Checks and Screening

As sanctions become more complex with continuous updates on laws and reporting requirements, information sharing supports automated AML. Compliance across multiple regimes and different regulations can be adhered to.  An entity can be screened for various checks, regardless of the country they belong to.

A single view can be obtained on a customer. Is the customer a PEP? Do they belong to a sanctioned country? Is the customer a regulated entity?

D. Access to high-quality data and global databases

Data quality and consistency of information are very critical for successful risk management. Automation of AML compliance helps to access high-quality data from disparate systems and databases.

E. Scalability

Automated AML systems have the advantage of scalability in operations, for a higher return on IT investment.

F. Can be deployed as an in-house model or a SaaS delivery option.

Automated AML systems have the benefit of integrating with in-house systems providing business control over the rules and thresholds. It generates continuous and consistent information to make business operations safer.  By integrating with your internal in-house systems or third-party systems, the operations are more efficient. The rapid changes in the regulatory environment mean that business and compliance staff can collaborate in real-time to strategise compliance.

At the same time, using automated AML as a web service allows for easy API integration and deployment, while minimising in-house resource use. Performance and functionalities are enhanced, as the SaaS model collaborates with global partners for better deliveries. An effective SaaS platform can be a game-changer in protecting the assets of business while managing risks in a dynamic environment.

Automated AML: An end-to-end AML software platform

The fight against financial crime and money laundering is made much more easy and efficient with an end-to-end AML software platform. This takes care of all the compliance requirements by type of customer, the channel of delivery, country of operations, and industry. The chances of missing genuine money laundering activities amongst the many false alarms are also minimised.

Automated AML systems have thus become the ultimate go-to risk management tool for businesses and FinTech players, who want to remain compliant and succeed in their missions.

The future ahead

RegTech companies in the automated AML space is working together with innovative compliance partners to not only reduce operational costs but also remain compliant. As organisations struggle with budgetary and resource constraints in the face of regulatory compliance, automated AML systems are deemed as the ultimate solution with scalable, cost-effective operations.

The future of automated AML is to address business needs with a customised end-to-end comprehensive system. Towards this end, they are leveraging innovations in technology like AI for better compliance and risk outcomes.

Find out more about NameScan’s Automated AML solutions here