It is important for any financial institution to implement anti-money laundering (AML) software to help track down illegal activities and identify suspicious activity. Here are some factors to consider when choosing AML software.
Make sure that the AML software you choose for your institution is a single platform that can identify and manage all the risks and the compliance activities. It should be effective in protective your organization against any regulatory as well as reputational risks. You want a software that will provide a holistic view of risks and manage everything with one solution including; reporting, screening, customer profiling and monitoring transactions.
At the same time, you need to consider risk scoring because it is crucial for your business to prioritize the highest risks first. Look for anti money laundering software that will help you see the risk score of each of your customers and be sure that it will focus on risk items that are highest. The vendor’s application should also be able to help you understand how it comes up with the risk score as some will determine based on whether the customer is a politically exposed person (PEP), if there is anything suspicious in their transaction and whether they are on a sanction list.
Integration capability is another crucial factor to keep in mind when choosing an AML software solution for your organization. Make sure that the potential software is able to integrate well with other financial crime solutions via API in your business. A good software vendor will provide you with a solution that will not only go well with your current system but will also cater for your future technology environment. It should be highly configurable and come with tools that will deal with new situations and rapid changes in the industry.
Before you start shopping for AML software, it is important to identify your business goals, internal resources, and constraints. This is necessary because different software requires varying level of resources and internal costs in order to ensure implementation and on-going support. Therefore, the AML software you purchase should match your institutions internal goals and resources. Similarly, the vendor should come up with rules that will reflect your business activity, type of customers and risks for your organization.
Most importantly, choose a credible vendor that is capable of providing you with the best solutions to meet your organizations requirements. In order to determine if they do as they claim, consider reviewing the feedback of other institutions which have used their system before. You can ask for references so you can talk to them and get to hear about their success stories. Lastly, is possible, ask to test the system to find out how effective it is in identifying and protecting your business against hidden risks. Get to know also about anti money laundering certification.
Get more info here: https://en.wikipedia.org/wiki/Automatic_identification_and_data_capture