Why you should embrace the next wave of AML tools

Modern AML tools can help firms mitigate risks and reduce costs

In the dynamic realm of Anti-Money Laundering (AML) practices, staying ahead of the curve with top-notch tools has become a must. As rules get tougher and more complex, riding the wave of the next-gen AML tools is like having a trusty partner for businesses committed to excellence.

This article explores the range of modern AML tools and how they can contribute to more effective compliance processes and improved customer onboarding.

What AML tools are available today?

Document Verification with Biometric Matching
The foundation of solid AML compliance lies in confirming the identity of customers. Too businesses many are relying on outdated practices or simple data searches that can lead to inadequate results. Some businesses even assist on manual identity checks, increasing their exposure to risk. By incorporating biometric facial recognition and AI-driven machine reading, ID verification technology offers superior reliability and speed. This technology allows for checks to be performed anytime and anywhere, expediting the onboarding process.

Source of Funds Digital Capture and Analysis
Assessing the source of funds involved in a transaction is a growing concern for many AML supervisors, as highlighted in the annual reports of regulatory bodies like the SRA and CLC. The integration of open banking has transformed how professionals in the property sector can capture and analyse sources of funds. You can finally ditch the highlighter pens and calculator, with instant reports that can automatically categorise transactions, flag unusual transactions and conduct affordability checks. Furthermore, it’s a lot more convenient for customers who instead of having to travel to get certified copies and simply connect to their accounts.

Dynamic Data Capture
Customisable data capture forms with intelligent logic can streamline the onboarding process, reducing the need for back-and-forth interactions with customers. This approach accelerates risk identification and eases the workload on front-line staff.

Enhanced PEPs and Sanction Searches
Cumbersome processes often hinder compliance efforts leading to lower levels of adherence. Modern AML tools help expedite information retrieval and present data in user-friendly formats, that non-compliance professionals can easily understand. These tools not only retrieve names and nationalities but also images, significantly decreasing verification time and enhancing internal adherence.

Proactive Monitoring and pKYC
The ambiguity surrounding ongoing monitoring has always been a challenge. Do you check daily, weekly, monthly or just prior to a transaction clearing? The cost of daily monitoring has up until now been prohibitive but with the digitisation of global datasets, machine reading, and lowered storage costs, continuous monitoring is now a cost-effective reality.

UBO and Proof of Ownership
AML regulations compel the identity verification of not only customers but also any true beneficial owners involved in transactions. Simply relying on customer-provided names is insufficient; independent verification is essential. Modern AML software interfaces with official data sources such as Companies House or the Land Registry to surface all parties related to the transaction.

Making the right choice

When it comes to assessing which software supplier to choose it not just the technology and features on offer you should consider.

Do they offer a customer-centric experience?
Your customers want to be treated like superstars, not suspects. A poorly built compliance programme can make it difficult to determine if people are deliberately avoiding it or if it’s through pure frustration. Clear instructions, customised branding, and innovative technologies like NFC document verification can substantially boost adoption rates.

Are they certified?
Many companies rely on compliance software for risk management. However, a lack of oversight used to prevail in this area. The UK’s recent Digital Identity and Attributes Trust Framework now holds regulatory technologies (reg techs) and ID service providers (IDSPs) accountable through rigorous testing of their capabilities. Regulation encourages the use of certified suppliers, and upcoming legislation like the UK Data Protection and Digital Information Bill will introduce an official register for the first time. You should also check whether the software supplier is registered with the ICO and has a sufficient level of cyber security in place.

Tackling financial crime with technology

Navigating today’s complex regulatory landscape can be a big burden on business. Choosing the right software can be a big help. From biometric scans to real-time checks, the right toolbox can take help you effectively manage your money laundering risks. By making these tools part of the game plan, businesses are setting themselves up for smooth sailing through regulations, earning customer trust, and keeping their operations on the up-and-up in the bustling financial landscape.

In conclusion, the landscape of AML tools has evolved significantly, providing businesses with advanced solutions to enhance compliance while optimizing operational efficiency. Embracing these tools can not only strengthen AML efforts but also cultivate a more secure and trustworthy financial environment.

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