The wrong AML solution slows you down. The right one protects your business, your customers, and your reputation.

In Singapore’s financial sector, compliance isn’t just about keeping regulators happy. It’s about staying one step ahead of increasingly sophisticated money launderers. With rising threats like cross-border mule networks, shell company abuse, and cyber-enabled fraud, banks and fintechs need anti money laundering solutions that go beyond static rules and outdated workflows.

This blog unpacks the key traits of effective AML solutions, explains what’s driving change in Singapore’s compliance landscape, and shows what forward-looking financial institutions are doing to future-proof their defences.

Why Singapore Needs Smarter Anti Money Laundering Solutions

Singapore’s global financial reputation makes it a target for illicit financial flows. In response, the Monetary Authority of Singapore (MAS) has tightened regulatory expectations and increased enforcement. From MAS Notice 626 for banks to the adoption of GoAML for suspicious transaction reporting, institutions are under more pressure than ever to detect, investigate, and report suspicious activity accurately and on time.

At the same time, financial crime is evolving faster than ever. Key risks include:

• Shell companies used to obscure beneficial ownership
• Structuring and layering of transactions across fintech rails
• Fraudulent job scams and investment platforms funneling money through mule accounts
• Trade-based money laundering involving under- and over-invoicing
• Deepfake-driven impersonation used to authorise fraudulent transfers

Without advanced tools to detect and manage these risks, traditional AML systems leave institutions exposed.

What an Anti Money Laundering Solution Is — and Isn’t

An AML solution is a suite of technologies that help financial institutions prevent, detect, investigate, and report activities related to money laundering and terrorist financing.

At its core, a robust AML solution should:

• Monitor transactions across all channels
• Screen customers against watchlists and risk indicators
• Help compliance teams manage and investigate alerts
• Generate regulatory reports in a timely and traceable way

However, many existing solutions fall short because they:

• Rely heavily on outdated rule-based systems
• Produce high volumes of false positives
• Lack adaptability to new money laundering typologies
• Provide poor integration between detection and investigation

In today’s environment, these limitations are no longer acceptable.

Key Features of Modern AML Solutions

To meet the demands of Singapore’s fast-moving regulatory and risk landscape, anti money laundering solutions must include the following capabilities:

1. Real-Time Transaction Monitoring

Monitoring must happen in real time to catch suspicious activity before funds disappear. The system should detect abnormal transaction volumes, unusual patterns, and structuring behaviours instantly.

2. AI and Machine Learning for Pattern Recognition

AI helps identify non-obvious threats by learning from historical data. It reduces false positives and uncovers new laundering tactics that static rules cannot detect.

3. Risk-Based Customer Profiling

An effective AML solution dynamically adjusts risk scores based on factors like customer occupation, geography, account behaviour, and external data sources. This supports a more targeted compliance effort.

4. Typology-Based Detection Models

Generic rules often miss the mark. Leading AML solutions apply typologies — real-world scenarios contributed by experts — to identify laundering schemes specific to the region.

In Singapore, relevant typologies may include:

• Layering through remittance platforms
• Shell company misuse in trade transactions
• Mule account activity linked to fraudulent apps

5. Watchlist Screening and Name Matching

Screening tools should support fuzzy matching, multilingual names, and both real-time and batch screening against:

• Global sanctions lists
• Politically exposed persons (PEPs)
• Adverse media
• Local lists, such as MAS and ACRA databases

6. Case Management and Workflow Automation

Once alerts are generated, case management tools help investigators document findings, assign tasks, track timelines, and close cases with clear audit trails. Workflow automation reduces manual errors and increases throughput.

7. Suspicious Transaction Reporting (STR) Integration

In Singapore, AML solutions should be able to format and submit STRs to GoAML. Look for solutions with:

• Auto-filled reports based on case data
• Role-based approval workflows
• Submission status tracking

8. Explainable AI and Audit Readiness

AI-driven platforms must produce human-readable justifications for alerts. This is essential for internal audits and MAS inspections. The ability to trace every decision made within the system builds trust and transparency.

9. Federated Intelligence Sharing

Leading platforms support collective learning. Tools like Tookitaki’s AFC Ecosystem allow banks to share typologies and red flags without revealing customer data. This improves fraud and AML detection across the industry.

10. Simulation and Threshold Tuning

Before deploying new rules, institutions should be able to simulate their impact and optimise thresholds based on real data. This helps reduce noise and improve efficiency.

What’s Holding Some AML Solutions Back

Many financial institutions in Singapore are still stuck with legacy systems. These platforms may be MAS-compliant on paper, but in practice, they create more friction than value.

Common limitations include:

• Too many false positives, which overwhelm analysts
• Inability to detect regional typologies
• No integration with external data sources
• Manual report generation processes
• Lack of scalability or adaptability for digital banking

These systems may meet minimum requirements, but they don’t support the level of agility, intelligence, or automation that modern compliance teams need.

The FinCense Advantage: A Purpose-Built AML Solution for Singapore

Tookitaki’s FinCense platform is built to address the specific challenges of financial institutions across Asia Pacific — especially Singapore.

Here’s how FinCense aligns with what truly matters:

1. Scenario-Based Detection Engine

FinCense includes over 200 real-world AML typologies sourced from the AFC Ecosystem. These are region-specific and constantly updated to reflect the latest laundering schemes.

2. Modular AI Agent Framework

Instead of one monolithic system, FinCense is powered by modular AI agents that specialise in detection, alert ranking, investigation, and reporting.

This structure enables rapid customisation, scale, and performance.

3. AI Copilot for Investigations

FinMate, FinCense’s intelligent investigation assistant, helps compliance officers:

• Summarise alert history
• Identify key risk indicators
• Generate STR-ready narratives
• Suggest next steps based on previous case outcomes

4. Federated Learning and Community Intelligence

Through integration with the AFC Ecosystem, FinCense empowers banks to stay ahead of criminal tactics without compromising on data privacy or compliance standards.

5. MAS Alignment and GoAML Support

FinCense is designed with local compliance needs in mind. From case tracking to STR filing, every function supports MAS audit readiness and regulatory alignment.

Institutions Seeing Real Results with FinCense

Banks and fintechs using FinCense report:

• Over 60 percent reduction in false positives
• Improved turnaround time for investigations
• Better team productivity and morale
• Higher STR acceptance rates
• Fewer compliance errors and audit flags

By investing in a smarter AML solution, they are not only keeping up with regulations — they are setting the standard for the industry.

Checklist: Is Your AML Solution Future-Ready?

Ask yourself:

• Can your system adapt to new laundering methods within days, not months?
• Are your alerts mapped to known typologies or just rule-based triggers?
• How many false positives are you investigating each week?
• Can your team file an STR in under 30 minutes?
• Do you benefit from regional AML intelligence?
• Is your investigation workflow automated and auditable?

If you are unsure about more than two of these, it’s time to evaluate your AML setup.

Conclusion: Smarter Solutions for a Safer Financial System

In Singapore’s compliance environment, doing the bare minimum is no longer good enough. Regulators, customers, and internal teams all expect more — faster alerts, better investigations, fewer errors, and greater transparency.

The right anti money laundering solution is more than a checkbox. It is a strategic enabler of risk resilience, trust, and growth.

Solutions like FinCense deliver on that promise with precision, adaptability, and intelligence. For institutions serious about strengthening their defences in 2025 and beyond, now is the time to rethink what AML should look like — and invest in a solution that’s ready for what’s next.

As scams surge across Australia, banks need advanced fraud screening tools to protect customers and meet AUSTRAC’s compliance standards.

Introduction

Fraud is one of the fastest-growing risks in Australia’s financial system. In 2024, Australians lost more than AUD 3 billion to scams, from phishing and romance fraud to business email compromise (BEC) and authorised push payment (APP) scams. For banks and fintechs, the stakes are high. Regulators like AUSTRAC expect strong defences, while customers demand seamless, secure experiences.

The solution lies in smarter fraud screening tools. These technologies detect suspicious activity in real time, prevent illicit transactions, and provide compliance teams with the insights needed to fight evolving threats. This blog explores the state of fraud screening in Australia, what the best tools look like, and how financial institutions can get ahead of criminals.

What Are Fraud Screening Tools?

Fraud screening tools are technologies used to identify, flag, and block suspicious transactions and activities. They sit at the frontline of fraud prevention, screening payments, logins, and account activity for potential red flags.

Typical components include:

• Transaction Screening: Checking payments for unusual activity.
• Identity Verification: Ensuring users are who they claim to be.
• Sanctions and Watchlist Checks: Screening against AUSTRAC and global lists.
• Behavioural Analytics: Analysing customer patterns for anomalies.
• Case Management Integration: Linking alerts to investigation workflows.

Why Fraud Screening Tools Are Critical in Australia

1. Real-Time Payments Pressure

The New Payments Platform (NPP) and PayTo mean funds move instantly. Screening tools must detect anomalies within milliseconds.

2. AUSTRAC Compliance

Under the AML/CTF Act 2006, institutions must monitor and report suspicious activity. Fraud screening tools ensure compliance with SMRs, TTRs, and IFTIs.

3. Scam Epidemic

APP scams, investment fraud, and phishing are draining customer savings. Screening tools are essential to catch them early.

4. Customer Trust

Effective fraud prevention builds loyalty. A single missed scam can destroy trust.

5. Operational Efficiency

Manual reviews are unsustainable. Screening tools reduce false positives and investigator workloads.

Key Fraud Risks in Australia

1. Authorised Push Payment (APP) Scams – Fraudsters trick victims into approving fraudulent transfers.
2. Account Takeover (ATO) – Criminals gain access to legitimate accounts through phishing or malware.
3. Mule Accounts – Fraud networks use individuals to launder illicit funds.
4. Business Email Compromise (BEC) – Scammers impersonate vendors or executives to divert payments.
5. Synthetic Identities – Fake accounts created with blended real and fraudulent data.
6. Cross-Border Laundering – Funds layered through international transfers to obscure origins.

Red Flags Detected by Fraud Screening Tools

• Transactions just below AUSTRAC reporting thresholds.
• Unusual login behaviour, such as device or location changes.
• Accounts showing rapid pass-through activity with low balances.
• Sudden spikes in transaction frequency inconsistent with customer history.
• Transfers to or from high-risk jurisdictions.
• Repeated disputes of transactions by customers.

Features of the Best Fraud Screening Tools

1. Real-Time Detection

Monitoring across NPP, PayTo, cards, and remittances must happen instantly.

2. AI and Machine Learning

Adaptive models that learn from evolving scam patterns.

3. Sanctions, PEP, and Adverse Media Integration

Comprehensive screening against local and global watchlists.

4. Behavioural Analytics

Detects anomalies in customer behaviour and device usage.

5. Integrated Case Management

Alerts should feed directly into investigation workflows.

6. Federated Intelligence

Leverages insights from industry-wide data without compromising privacy.

7. Regulatory Reporting Automation

Generates SMRs, TTRs, and IFTIs for AUSTRAC seamlessly.

Challenges in Using Fraud Screening Tools

• False Positives: Poorly tuned systems overwhelm compliance teams.
• Legacy Systems: Many institutions struggle with outdated infrastructure.
• Integration Gaps: Screening often sits in silos, disconnected from AML tools.
• High Costs: Smaller institutions face affordability challenges.
• Evolving Typologies: Fraudsters constantly adapt to bypass controls.

Case Example: Community-Owned Banks Taking the Lead

Community-owned banks like Regional Australia Bank and Beyond Bank have shown that advanced fraud screening tools are not just for the big players. By adopting AI-powered platforms, they have strengthened their defences, reduced false positives, and maintained compliance with AUSTRAC, all while keeping customer trust intact.

Spotlight: Tookitaki’s FinCense

FinCense, Tookitaki’s all-in-one compliance platform, provides advanced fraud screening capabilities for Australian institutions.

• Instant Detection: Screens transactions in real time across all payment rails.
• Agentic AI: Continuously adapts to new scam tactics.
• Federated Intelligence: Draws on industry-wide fraud typologies from the AFC Ecosystem.
• Integrated Case Management: Provides investigators with context-rich alerts and regulator-ready reporting.
• AUSTRAC Alignment: Automates reporting and ensures transparency.
• Cross-Channel Coverage: Covers banking, cards, wallets, and remittances.

With FinCense, institutions can transform fraud screening into a proactive, intelligence-driven safeguard.

Best Practices for Deploying Fraud Screening Tools

1. Prioritise Real-Time Monitoring: Match the speed of NPP and PayTo transactions.
2. Invest in Explainable AI: Ensure regulators can understand and trust model decisions.
3. Integrate Screening with AML: Connect fraud and AML functions for a unified view of risk.
4. Improve Data Quality: Clean, consistent customer data improves screening accuracy.
5. Train Teams Continuously: Equip investigators to adapt to new typologies.
6. Collaborate with Regulators and Peers: Share insights to strengthen industry-wide defences.

The Future of Fraud Screening in Australia

1. AI-Powered Investigations – Copilots like FinMate will automate much of the investigative process.
2. Deeper PayTo Coverage – Tools will need to evolve to detect PayTo-related scams.
3. Cross-Border Intelligence Sharing – Fraud networks operate globally, demanding collaboration.
4. Digital Identity Integration – Biometrics will become a key defence in onboarding and monitoring.
5. Frictionless Customer Protection – Solutions will focus on seamless security without disrupting user experience.

Conclusion

Fraud screening tools are no longer optional for Australian banks and fintechs. With scams accelerating and AUSTRAC raising expectations, institutions must adopt smarter, real-time tools that can keep up with the pace of modern fraud.

Community-owned banks like Regional Australia Bank and Beyond Bank show that effective screening is achievable even without Tier-1 budgets. Platforms like Tookitaki’s FinCense combine AI, federated intelligence, and case management to set a new benchmark in fraud prevention.

Pro tip: The best fraud screening tools do more than stop fraud. They build the trust that keeps customers loyal in an increasingly risky landscape.

When it comes to AML compliance, it’s not about having more software. It’s about having the right features.

In Singapore’s highly regulated and fast-evolving financial sector, banks and fintechs are under increasing pressure to manage financial crime risks efficiently and accurately. With the rise of faster payments, complex laundering methods, and tighter regulatory expectations from the Monetary Authority of Singapore (MAS), not all AML software will make the cut.

In this blog, we break down the top 10 AML software features that financial institutions in Singapore should prioritise — and why getting these right can make all the difference between reactive compliance and proactive risk management.

1. Real-Time Transaction Monitoring

Time is critical when detecting suspicious activity. A strong AML solution must offer real-time transaction monitoring across all payment channels, including digital wallets, cross-border transfers, and branch activity.

Why it matters:

• Prevents fraud before it completes
• Reduces the time to detect layering or structuring patterns
• Helps meet MAS expectations for timely alerting

Look for systems that can flag high-risk behaviour the moment it happens, not hours later.

2. Risk-Based Customer Profiling

Not all customers pose the same level of risk. That’s why AML software must support dynamic customer risk scoring.

Key capabilities:

• Customisable risk models based on occupation, geography, transaction behaviour, and PEP status
• Continuous risk updates based on new data
• Integration with onboarding and KYC processes

This feature enables a truly risk-based approach, which is core to FATF and MAS guidelines.

3. Advanced Name Screening and Sanctions Matching

Watchlist screening is non-negotiable. Your AML software must be able to check customer and transaction data against:

• Sanctions lists (UN, OFAC, EU)
• Politically exposed persons (PEPs)
• Adverse media sources
• Local regulatory lists such as those published by MAS

Bonus points for:

• Fuzzy matching logic to catch near-misses and aliases
• Low false positive rates
• Real-time and batch processing modes

4. Scenario-Based Typology Detection

Traditional rules like "flag all transactions over $10,000" are no longer sufficient. Banks in Singapore need AML software that detects real-world money laundering scenarios.

Features to look for:

• Built-in library of typologies (e.g., mule account flows, shell company layering, trade-based laundering)
• Ability to map multiple transaction patterns to one scenario
• Support for local and regional typologies relevant to Southeast Asia

This enables earlier and more accurate detection of suspicious activity.

5. AI-Powered Alert Optimisation

High alert volumes are the number one pain point for compliance teams. Software with machine learning capabilities can help by:

• Reducing false positives
• Learning from past decisions
• Improving alert prioritisation

Look for platforms that let AI handle the noise while your analysts focus on what truly matters.

6. End-to-End Case Management

Once an alert is generated, your team needs a seamless way to investigate, document, and close the case. That’s where robust case management comes in.

Important features include:

• Case creation linked to alerts
• Access to transaction history, customer profile, and risk factors in one place
• Assignment workflows and escalation paths
• Collaboration tools for team-based investigations

The best systems will also generate case timelines and store decisions for audit and reporting purposes.

7. Automated Suspicious Transaction Report (STR) Filing

In Singapore, AML software must support direct or indirect integration with GoAML for suspicious transaction reporting.

What to expect:

• Auto-populated STRs based on investigation data
• Export in required formats
• Digital submission compatibility with MAS systems
• Built-in STR review and approval workflow

This saves compliance officers time while ensuring accuracy and traceability.

8. Federated Intelligence Sharing

This is a game-changer. The ability to benefit from the typologies and red flags discovered by other banks — without sharing your customer data — gives institutions a significant edge.

The AFC Ecosystem, for example, allows institutions using Tookitaki’s FinCense platform to:

• Download new typologies contributed by other members
• Stay up to date with emerging scam methods in Southeast Asia
• Adapt faster to real threats without compromising data privacy

This collaborative intelligence model is fast becoming an industry standard.

9. Simulation and Threshold Tuning

Changing detection rules shouldn’t feel like guesswork. The right AML software will let you:

• Simulate a new rule or threshold before deploying it
• See how many alerts it would generate
• Compare against current system performance

This feature helps optimise detection coverage while managing alert volumes — critical for balancing compliance accuracy and operational efficiency.

10. Smart Investigation and Auto-Narration Tools

AI has made investigations faster and more consistent. Best-in-class AML platforms now include features like:

• FinMate-style AI copilots that assist analysts in summarising alerts
• Natural language generation to write STR narratives automatically
• Pattern recognition to link related cases

The result? Less time spent writing reports and more time focused on decision-making.

How These Features Come Together in FinCense by Tookitaki

Tookitaki’s FinCense platform has been purpose-built with all 10 features outlined above. Designed for the regulatory environment of Singapore and the wider Asia-Pacific region, FinCense enables:

• Real-time monitoring across multiple payment rails
• AI-driven scenario detection using regional typologies
• Smart disposition engines that recommend next steps
• Integration with MAS systems for STR filing
• Access to the AFC Ecosystem’s library of shared scenarios

The modular design allows banks to pick the features they need and scale as they grow. This makes FinCense ideal for digital banks, neobanks, traditional institutions, and payment platforms alike.

Why These Features Matter More Than Ever in Singapore

Singapore’s financial sector is evolving at speed. Between rapid digitalisation, cross-border transactions, and new scam typologies, compliance teams are facing more complexity than ever before.

MAS Expectations Are Rising

Regulators now expect:

• Timely and accurate STR filing
• Real-time risk detection and escalation
• Explainability in AI decision-making
• Ongoing refinement of detection models

Financial Crime Is Evolving

Typologies are becoming harder to detect. Examples include:

• Deepfake impersonation fraud targeting CFOs
• Layering through prepaid utilities and QR platforms
• Multi-jurisdictional mule networks

Resources Are Limited

Compliance teams are under pressure to do more with less. The right AML software features help automate, optimise, and scale operations without increasing headcount.

Checklist: Does Your AML Software Include These Features?

Use this 10-point checklist to evaluate your current system:

• Real-time monitoring?
• Risk-based profiling?
• Sanctions and PEP screening with fuzzy matching?
• Scenario-based detection?
• AI-powered alert reduction?
• Full case management and audit trail?
• STR automation and GoAML support?
• Intelligence sharing without compromising privacy?
• Rule simulation and tuning?
• AI tools for investigation and narration?

If your current software misses more than three of these, it may be time to upgrade.

Conclusion: Features That Drive Impact, Not Just Compliance

AML software is no longer just about ticking regulatory boxes. In today’s high-risk, high-speed financial environment, it must enable smarter decisions, faster actions, and stronger defences.

By focusing on the right features — and not just flashy dashboards or outdated rule sets — banks in Singapore can transform AML from a cost centre into a strategic capability.

Solutions like Tookitaki’s FinCense offer not just compliance, but competitive advantage. And in a landscape where trust is everything, that could be your biggest asset.