In an age of digital transformation, compliance professionals are faced with the immense task of conducting comprehensive KYC (Know Your Customer), Know Your Business (KYB), and AML (Anti-Money Laundering) checks on their customers. For a smooth, friction-free customer onboarding experience, it’s becoming increasingly essential to have a technology partner that ensures the highest standards of compliance while maximising efficiency.
While the landscape of compliance in regulated businesses is complex, choosing the best AML software partner for your business can streamline processes and ensure continued compliance.
What is AML software?
AML software solutions are digital platforms designed to assist businesses in conducting identity verification, risk assessment, ongoing customer due diligence, and monitoring. These technologies aim to streamline and automate the process of verifying the identity of clients and ensuring they are not involved in money laundering or other illicit activities.
How does AML software work?
Traditionally, KYC/B and AML procedures involved manual checks, which were not only time-consuming but also prone to errors. Automated systems, on the other hand, make use of advancements in data analytics and advanced technology to quickly analyse vast amounts of data and flag any suspicious or inconsistent information. For example, the software will cross-reference new client profiles against global watchlists, PEPs and sanctions databases, and other relevant information sources in real-time to ensure their legitimacy before onboarding.
How to choose the best AML software
In this article, we share ten crucial tips to guide you in selecting the ideal software partner for your firm’s AML compliance needs.
Data sources and coverage: The foundation of any AML and KYC system is its data. Ensure that your compliance partner offers comprehensive data sources that are truly global. This ensures that you’re not missing crucial information when verifying customer identities or screening businesses.
Configurable rules based on your business’ risk appetite: Every business has its unique risk threshold. Opt for software that allows you to set and customise rules in accordance with your company’s specific risk appetite, ensuring that alerts and verifications are tailored to your unique needs.
Agile platform to implement the very latest regulation: Regulations and compliance standards can change quickly. Your software should be agile enough to adapt to new regulation changes, incorporating the latest requirements, and sanctions and watchlists updates in real-time.
Depth of data for UBO mapping: When it comes to UBO (Ultimate Beneficial Owner) mapping, depth is crucial. The software should provide detailed and clear information about the ultimate beneficiaries of a company to ensure that all connections are transparent and traceable.
Secure platform: Security cannot be compromised, especially when dealing with sensitive financial and personal data. Prioritise platforms with top-notch security measures, recognised data protection certifications, and regular vulnerability assessments.
Trained support staff: Beyond the software, the human element is just as crucial. Ensure your chosen software partner’s team has the necessary certifications and knowledge of the inner workings of AML compliance, such as qualifications from the International Compliance Association (ICA), to handle and support you through your intricate compliance challenges.
Continued due diligence: One-off verifications aren’t enough. Customer profiles, and as such, risk levels, can change soon after your initial onboarding checks have been conducted. The right compliance partner will provide tools for ongoing monitoring, ensuring that customer profiles remain up-to-date and that any suspicious activity or adverse changes are promptly detected.
Easy-to-interpret dashboard: Time is of the essence for compliance professionals. An intuitive dashboard, with simple case management and automated workflows allows for quick insights, making it easier to track and manage verifications, red flags, and other critical data points.
Configurable reports: Different businesses have different reporting needs. Opt for a partner that offers configurable report settings, so you can extract the data in a format that aligns with your business objectives and regulatory requirements.
User access and permission levels: Not every team member needs access to all information. Choose software that allows you to set different permission levels, ensuring data is accessible only by authorised personnel while promoting collaboration across departments in your business.