A New Era of Technology Driven Advanced AML Solutions

Rethinking AML Compliance

As the financial services industry continues to evolve?and every financial institution are thinking of going beyond the needs to simply observe and meet regulatory standards by taking a?focused approach?backed by the latest advances in technology . This new approach intent them to utilizes specialized tools which is configured to their risk profile, meet the demands of regulators, and boost the customer experience.

How an effective AML compliance happens along key verticals

A technology driven AML compliance is like solving old problems with new tools. This starts from enhancing onboarding to reporting suspicious activity to the authorities, however it demands the financial institutions to understand the possibilities of a technology in AML compliance process before they exploit its potential.

Let’s explore the ways that can practically impact the compliance function using an AML compliance checklist.

1. Onboarding & Risk Assessment

Onboarding is a crucial component of AML compliance which is also related to strengthening the customer experience. If the process delays, you are likely to loose your customers and at the same time if the process is not rigorous enough your compliance may be put at risk. Bringing technology in action would help you in consolidating multiple data sets for efficiency onboarding.

Risk assessment is a pillar of AML compliance and generally is a crucial step in the onboarding process. Implementing an extensive onboarding solution with KYC and Risk Assessment features would definitely is an effective plan. It is essential that the solution need be tailored to meet unique needs in addition to the identified risks and vulnerabilities of your clients and third party suppliers.

• Technology reduces the time takes to complete onboarding.
• The new approach with systems in place reduces unnecessary work and optimizes compliance skills.
• System helps in effective sourcing and managing of data.
• Clean and consolidated data make remediation quicker and easier.

2. Screening

An advanced screening solution to support the screening process

• Integrating Onboarding platform with the Screening solution for effective Risk Assessment.
• Increasing efficiency by screening against Politically Exposed Persons (PEP), Sanction List, Watch List, Adverse and Negative Media.
• Setting up specific risk segments for different customer groups during onboarding
• A Transaction Screening solutions carry out checks in real-time and ensures payments are processed compliantly and efficiently?

Advantages

Progressive Solution

Technology could transform compliance into an ongoing process which continues throughout the client lifecycle, evolving with the threat landscape around it.

An advanced AML compliance solution gives firms the power to implement a progressive system to manage the customer KYC , Risk Profiling and Screening. For and example; a progressive transaction screening performs continuing AML compliance checks and reports if the client engages in certain activities or payment types.

A progressive compliance system focus on controls, detects and reports financial crime. This would establish a standard guideline often generates comprehensive reports and reduces false positives.

Risk Monitoring

The advantage of an AML compliance system is that it can be modified/adjusted to adapt your organizations compliance policies. And it is capable of handling risks proactively and remain compliant even when the environment around them changes. A system automates the KYC and Risk Scoring process to help firms eliminate any unwelcome surprise of discovering compliance problems. The system helps in establishing continuous risk monitoring and conducting due diligence to ensure on-going compliance

Use of technology in AML enables firms to quickly identify the threats and reach conclusions.

Remediation and Reporting

A smart technology can impact the decisions about the money laundering threats by generating meaningful insights, remediate, and report.

Complete automation of the process will speed the procedures which means your can react quickly to threats and create the alert. With a system in place you can swiftly access all the necessary information lined up and report a suspicious activity. An advances AML tools would also let you escalate your suspicious activity reports quickly and communicate clearly with your compliance team.

Thank you for reading my post.?Digitalizing your AML-KYC is an important step towards effective customer management, I would be glad to answer your queries.