Did you know that money laundering amounts to $1.6 trillion, or 2.7% of global GDP annually? It comes as no surprise then that government regulations against money laundering are becoming stricter every year and businesses are in a hurry to put AML (anti-money laundering) solutions in place.
It is indeed paramount for companies to do their part in the fight against the trade of illegal goods, human trafficking, and even terrorism, which can all be consequences of money laundering. AML compliance can, however, be time-consuming and inefficient when done in-house. And any oversight could lead to a fine by a regulator that in turn could bring severe financial and reputational losses.
That’s why finding the right AML solution is a top priority for companies in the financial sector and beyond. But how do you know if you have selected the right product? Here’s what you should look for when choosing your AML solution:
A strong AML solution should offer an array of functionalities, including real-time monitoring of transactions, tiers and threshold analysis, proactive and real-time alarms for suspicious transactions, as well as information on suspicious countries, and data on the amount and volume of suspicious transactions. The automation in detecting anomalies is also a key element: that way, the platform sifts through important events and proactively sends alarms to work on.
All these functionalities, however, would not mean much if the data analysis is hard to understand. You should look for an AML solution that incorporates easy-to-use dashboards that present the information in a user-friendly and understandable way.
Look for an AML solution developed by a company that has experience and knowledge in the financial industry and understands the industry requirements in terms of security, performance, and scalability.
Scalability and flexibility
It is essential that the AML solution is scalable and flexible. On one hand, because the regulations continuously change and on the other hand, because criminals find new and creative ways to cause harm.