September 23, 2021
The United Nations Office on Drugs and Crime (UNODC) estimates that $800 billion to $2 trillion are globally laundered every year, but there are several financial regulations created to help prevent financial crime both locally and globally. AML Solutions and AML systems were created to help comply with these regulations because, without compliance, the regulations don’t have any effect.
Statistical models and techniques have often been used to predict abnormal transactions, fraudulent customers, and deceptive relationships within a financial system, but, with an increase in the quantity, variety, and speed of data, real-time fraud detection has become a necessity. Advanced analytics are often used to predict the intent of a customer based on behavior such as their click speed, IP address, the products purchased, pages visited, etc.
In financial services, there are many challenges including controlling and resolving risk, compliance, and fraud issues. Case management systems are capable of collecting different sources of information that an analyst needs to solve a problem. Using case management software is the most efficient means to facilitate case management because it creates consistency throughout the cases.
In order to fight against financial crime, various financial institutions across the world are required to create and integrate Anti Money Laundering (AML) Compliance Programs. It is crucial that all financial institutions know what an AML compliance program needs to do, and how to make a unique program for their institution.
The Starting point for AML compliance in a digital world is online identity verification, and because of this, governments are becoming more comfortable with, if not encouraging online customer identity verification. AML and KYC work together when it comes to the role of online identity verification.
Investigation management helps carry out targeted AML and anti-fraud solutions. Having an investigation management feature as a part of your institution’s AML Solutions and AML systems can reduce cycle time while maximizing task performance and speed up the process of data aggregation. It can also cut false positives without losing any critical data. By having more targeted alerts your company can reach solutions faster.
It is crucial that financial institutions deploy risk management as an AML Solutions and AML systems feature in order to improve their controls in the complex environment.
Like all of these features, Suspicious activity reports (SARs) are an integral part of an Effective AML system and crucial for financial authorities. By investigating and documenting suspicious activity as well as writing reports regarding the suspicious activity, your SARs will improve resulting in better AML Solutions and AML systems.
Transaction monitoring gives financial institutions the ability to monitor transitions in real-time in order to assess risk. This, along with an analysis of a customer’s profile can help AML solutions give financial institutions the ability to catch and report suspicious activity as well as alert the customer of suspicious activity.
To learn more about how Unit21 can help your company with AML Solutions schedule a meeting today.