#aml software solutions

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In traditional banking practices, the number of fraudulent activities performed was high. The risk of fraud is also high with online banking. The risk can be eliminated with a robust system to analyze and detect suspicious transactions. This is where the anti-money laundering system comes into light. The AML software is a specialized computer program that analyzes customer data and detects fraud used by financial institutions. The AML software is used as a part of the bigger AML compliance program and plays a huge role in the risk-based approach to the unique profile of the financial institution. In this article let us take a look at some important features of AML transaction monitoring software.

The functioning of AML software

Before taking a look at some features of the anti-money laundering software, let us focus on the basic working principle of AML.

The rule-based system of the software produces an alert which is categorized by the analyst into various categories. The categories form a data set including audit trails, regulator and case report, case management, KYC, CIP, logical data interference, SDM search, user admin, and more. The data set is used to train a risk ranking algorithm.

At the end of the training, the risk ranking algorithm can score data that it has never seen before by the level of money laundering risk shown.

At the time of the prediction phase, every alert is assigned with a score. The alerts with a low-risk threshold are eliminated while the ones with high scores are to an analyst for further analysis.

The rule-based system is extended by introducing an anomaly detection to analyze every case. It generates more alerts and reduces the chance of something slipping away from notice.

The risk ranking algorithm combined with the Anomaly Detection module improves the speed of precision and transaction monitoring.

Features of AML

The features of the different platforms might vary. However, the basic function and capabilities of AML transaction monitoring software are defined by the following features.

Name screening

The AML software is used to perform a quick search and identify a blocked person and raise a red flag in the institution. It helps in identifying sanctions and is also used to identify PEPs (Politically Exposed Persons). It also helps to identify individuals with media attention.

Transaction monitoring

The transaction monitoring feature of anti-money laundering software solutions focuses on analyzing and identifying any suspicious patterns that remain hidden in a customer transaction. The transaction monitoring is done with the help of historical information of a profile and its specifics.

Currency transaction reporting

The software is used to detect transactions involving a large amount of cash. It is also used to detect multiple transactions that aggregate to a large amount of cash.

Compliance

The AML software is used in day-to-day maintenance and implementation of compliance. The data management ability of AML software can be used to maintain a complete record of the employees, trainees, audits. It is also used to track reports that are presented to the financial authorities.

Case management

It helps in managing the database and using it for the detection of suspicious activity. The case management includes four steps which are to detect, investigate, manage and report.

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