Top 5 Factors to Consider for the Best AML Screening Vendor?
Every year criminals successfully manage to launder the amount of money from $.8 billion to $2 trillion as per the estimation of United Nations Office on Drugs and Crime.
Main cause of money laundering which has been noticed by researchers is the inability of financial institutions to follow adequate anti money laundering regulations that aids in identifying money laundering transactions in close time.
Why have compliance efforts not changed as criminals have?
Number of reasons are out there why money laundering may not be prevented but the primary one is selecting the incorrect anti money laundering vendor screening system for your customized compliance needs.
Selection of the vendor must be done carefully since anti money laundering vendors provide financial institutions with sophisticated, error free anti money laundering screening and monitoring services which are considered to be essential in preventing money laundering and other financial crimes at times.
Anti money laundering vendors provide an opportunity to banks and other companies with a range of services to make sure if they are actually meeting all the standards which include the risk management, updated monitoring, screening of customer transaction history, adverse media screening, and regulatory compliance as well.
Although, anti money laundering vendors assist financial institutions in meeting all of the most recent regulatory obligations in real time.
Financial institutions should definitely consider the following important factors when selecting anti money laundering for better verification services.
AML Vendor Qualities to Consider
If there is any financial institution searching for an anti money laundering vendor then you are at the right place as we shall talk about a number of essential factors that have the power to make or break your compliance system of organization. There are high chances that your company could lose millions of dollars in fines and harm to its brand if it does not comply with any compliance obligations.
1. Monitoring Transactions in Real Time
First feature which we are going to list is the capacity to keep an eye on client behavior, financial transactions, and history of anti money laundering software as it helps in making well informed decisions and identify any suspicious transactions simultaneously.
Therefore, updated monitoring features must be included in every modern anti money laundering solution as it helps in making sure that the transactions which seem suspicious are completely detected. Such an updated version of the vendor allows your compliance staff to take immediate action accordingly.
2. The Approach Based on Risk
Are all of the customers equally risky? The answer is ‘definitely not’. When a person appears on the politically exposed list, they get more dangerous than someone who has no prior criminal history overall. Therefore, you should be dead sure if your anti money laundering software has the tools that allow for customisable risk assessment.
Financial institutions can easily establish distinct groups for various individuals according to their risk profiles and levels by using a competitive software solution that can be customized according to the requirements of the company or organizations.
3. Thorough Screening for Adverse Media
Better adverse media screening requires keeping up with the most recent news, online publications, and websites that are inaccessible to the general public and a good anti money laundering software aids the organization in monitoring all of the stated things.
An ideal anti money laundering software should be able to immediately update with the most recent adverse news that is being shared globally alongside fewer false positive rates that would have a tendency of higher risk.
4. Customer Due Diligence (CDD) Automation
Process of manually gathering client data and cross referencing it with the database is quite time consuming, resource intensive, and prone to mistakes so a company should be sure when it comes to selection of a system that is automatic in the Know your customer (KYC) and customer due diligence process (CDD).
Have you ever wondered why this matters to companies? because it expedites the whole onboarding procedure and guarantees that you are constantly keeping an eye on your clients, especially those who pose a great risk to the company.
5. Regulatory Compliance Updates on a Regular Basis
International regulatory authorities keep updating their anti money laundering legislation or regulations which is an effort to make sure that criminals cannot engage in crimes like money laundering activities or terrorist financing. Your anti money laundering vendors should therefore update their systems to suit changing needs in order to keep ahead of these changes at the same time.
Fortify your compliance strategy with AML Watcher
AML Watcher is the ideal AML software for compliance. With real-time monitoring, automated customer due diligence, and dynamic risk assessments, it ensures your organization stays ahead of regulatory requirements. Simplify compliance with cutting-edge features, reduce false positives, and protect your business from financial and reputational risks.