Maximising AML Compliance Efficiency and Effectiveness with Tookitaki

4 mins

Anti-money laundering (AML) compliance is a critical function for financial institutions of all sizes. It's not just a regulatory requirement, but a necessary step to protect against financial crime and maintain the integrity of the financial system. However, with the ever-changing landscape of financial crime, it can be challenging for financial institutions to keep up with the latest techniques and regulations while also managing the cost and resources required for compliance. 

This is where Tookitaki comes in. Our platform is designed to help financial institutions maximize efficiency and effectiveness in their AML compliance efforts, so they can protect against financial crime while also reducing costs and improving operational efficiency. In this blog, we'll explore how Tookitaki's platform can help financial institutions achieve this goal.

Challenges in AML Compliance: Addressing the Status Quo in Financial Institutions

Many financial institutions, both large-scale banks and emerging fintech companies, struggle with inefficiency and ineffectiveness in their AML compliance efforts. The main reasons for inefficiencies are:

  • Inadequate legacy systems leading to large volumes of false positives
  • Difficulty in identifying and prioritizing high-risk alerts
  • High costs of compliance and manpower needed for alert management
  • Lack of AML standards and technology expertise for expanding into new markets
  • Difficulty in maintaining expected compliance standards throughout the consumer lifecycle

As regulatory pressure continues to increase, financial institutions must find ways to improve their AML compliance efforts to stay ahead of the curve.

Tookitaki's AML Solutions and their Impact on Financial Crime Prevention

Tookitaki was founded in 2015 with a mission to tackle the root cause of money-laundering. Having identified that criminals are taking advantage of silos that existed in the traditional anti-money laundering systems, Tookitaki came up with the idea of creating a network of experts - specialists in the varying aspects of financial crime - who collaborate to create an exhaustive library of typologies. This ‘collective intelligence’ serves as the foundation for seeking out the diverse range of criminal activity.

Tookitaki's AML software, the Anti-Money Laundering Suite or AMLS, is Tookitaki’s answer to the industry-standard, siloed-nature of combating financial crime. It is a true end-to-end workflow that enables users to review and manage alerts from all AML stages in one place. The AMLS provides a suite of four modules that are optimized for Intelligent Alert Detection (IAD), and Smart Alert Management (SAM). The SAM version of AMLS is meant for large traditional banks, while the IAD version is meant for fintech companies, including digital banks, e-wallets and payment services companies.

Maximizing Efficiency with Tookitaki's Smart Alert Management (SAM) for Large Banks

Maximizing efficiency in AML compliance is a constant challenge for large traditional banks. The high volume of false alerts generated by legacy systems can be a major manpower issue, and compliance teams are often overwhelmed by the sheer number of alerts they need to review. AMLS’ Smart Alert Management (SAM) version is specifically designed to address this issue. By prioritizing high-risk alerts and de-prioritizing lower-risked alerts, SAM can reduce the cost of compliance for banks by decreasing over 50% of generated false positives. In addition, SAM also provides treatment strategies that further reduce the cost of compliance. A case study with a global bank revealed that, after deploying SAM, every one in six alerts became a suspicious report, a 600% improvement in operational effectiveness, and a 53% increase in productivity.

In another case study with a tier 1 bank in Singapore, AMLS SAM achieved the following:

  • 70% reduction in false positives for individual names and 60% reduction in false positives for corporate names through our Name Screening module.
  • 50% reduction in false positives, 5% increase in true positives (file-able SARs) and an overall true positive prediction rate of 96% in the high-priority category through our Transaction Monitoring module.

For this client, the benefits they derived include:

  • Increased effectiveness in identifying suspicious activities
  • A sharper focus on data anomalies rather than depending on threshold triggering
  • Easier customisation of data features to target specific risks accurately
  • Ability to enable longer look-back periods to detect complex scenarios

AMLS went through multiple rounds of testing and validation and our machine learning models have been proven to provide stable results and remain agile to the cause in dynamic situations. At the same time, it could effectively explain the decision-making process of machine learning models in a comprehensive yet simple manner.

Ready to take the next step in financial crime prevention?

Are you ready to take your AML compliance to the next level? Tookitaki's AML Solutions can help you achieve this with our community approach, maximizing efficiency, and unlocking growth opportunities. Request a demo today and see how our platform can benefit your financial institution.