According to the United Nations, 2-5% of the global GDP, totaling between $800 billion to $2 trillion, is laundered annually. The social consequences of money laundering are far-reaching and potentially highly destabilizing for a state. To prevent, detect and combat money laundering from criminal enterprises, drug dealers, corrupt public officials and terrorists, governments adopted a counter-move – a defensive regulatory Anti-Money Laundering (AML) policy.
Anti-money laundering (AML) is a combination of laws, regulations and procedures used by a financial institution to prevent money laundering. Effective anti-money laundering regulations and procedures are of great importance to protect the integrity of markets and the global financial framework. Regulated institutions are mandated to follow these regulations and procedures by creating AML compliance programmes.
Apart from necessary human resources, banks and financial services should have technological resources to carry out their AML compliance activities and duties effectively. In fact, modern institutions that handle large datasets cannot fulfil their AML compliance requirements effectively and efficiently without technology. AML compliance software helps financial institutions immensely by removing a lot of manual processes and speeding up decision making.
An anti-money laundering software (AML software) is a tech solution that helps financial institutions and other regulated entities to prevent, detect and report money laundering and related crimes in compliance with the requirements from regulators.
Financial institutions use anti-money laundering software solutions as part of a wider AML compliance programme, and these solutions are implemented taking into account each and every financial institution's unique AML risk profile. Anti-money laundering software solutions are valuable tools for institutions all over the world in the fight against financial crime as they facilitate faster and more accurate compliance and investigations.
AML software platforms help financial institutions implement their AML programmes which involve a number of diverse processes. The processes ensure that a customer’s profile and financial behaviour are not against the AML laws of the land. Broadly, AML software solutions increase the effectiveness and efficiency of these processes.
AML software solutions help financial institutions to stop doing business with high-risk people and entities, prevent or detect suspicious activities in their platforms, reduce false positives in workflows and assist in reporting suspicious activities and transactions.
While various AML software platforms differ in their capabilities, the following are the major AML processes they deal with.
Artificial Intelligence (AI) has brought in disruption in many industries with its ability to mine, structure and analyse huge volumes of data and provide actionable insights. AI can take up repetitive tasks, saving valuable time, effort and resources that can be redirected to perform higher-value functions.
From an AML compliance perspective, AI can extract risk-relevant information from large volumes of data and present that information in a better coherent manner, making the process of identifying high-risk transactions and clients even easier in the fight against financial crime.
The process inefficiencies of rule-based AML software can be reduced significantly by using the power of AI in the following ways:
Today, the banking and financial services industries understand AI's and machine learning's power in preventing sophisticated money laundering techniques.
Tookitaki is revolutionising financial crime detection and prevention for banks and fintechs with its cutting-edge solutions.
A game changer in the space, we improve risk coverage by democratising AML insights via a privacy-protected shared learning framework powered by a network of AML experts.
We provide an end-to-end, AI-powered AML compliance platform, named the Anti-Money Laundering Suite (AMLS), with modular solutions that help financial institutions deal with the ever-changing financial crime landscape. The key features of our modular AML compliance solutions are given below:
Smart Screening: Our Smart Screening solution provides accurate screening of names and transactions across 18+ languages and a continuous monitoring framework for comprehensive risk management. Its key features include:
Customer Risk Scoring: The solution features a dynamic customer risk scoring engine which adapts to changing customer behaviour to build a 360-degree risk profile, thereby providing a risk-based approach to client management. Its major features include:
Tookitaki Transaction Monitoring: Our Transaction Monitoring solution provides comprehensive risk coverage and suspicious activity detection via a one-of-a-kind typology repository and automated threshold management. Its key features include:
Case Manager: The Case Manager provides a centralised investigation workflow for alerts from all AML modules – Smart Screening, Customer Risk Scoring and Transaction Monitoring. Its features include:
Our modern software solutions based on artificial intelligence and machine learning can manage the end-to-end of AML compliance programmes. It can improve the efficiency of the AML compliance team and better mitigate compliance risk.
Speak to one of our experts today to understand how our solutions help your compliance teams to effectively detect financial crime and ensure future-ready compliance programmes.