AML laws and regulations have been around since 1970. The US enacted the first BSA act, which is still considered the most effective regulation. According to this act, all business sectors must have an AML program that is actively functioning to report all suspicious users, abnormal transactions, etc., by constant monitoring. The AML laws target a wide range of criminal activities like tax fraud, market manipulation, illegal trade, terrorist financing, corruption, etc. In this article, you will learn how to choose the best anti-money laundering applications for your organization.
Four Factors To Consider When Selecting An AML Application
As the mode of criminal activity has evolved, software engineers are incorporating more and more new features into the applications to build them stronger and tougher. Hence, you must be critical and careful when choosing an application for your organization. Here, we will tell you the four criteria your choice of application must fulfill.
● Data
The importance of data in Anti-money Laundering Application is paramount. Since it is from this data, valuable insights are drawn to comply with the AML law. Since the PEP, sanction, and adverse media lists are changing constantly, it is necessary for you to deal with the updated ones. Hence, you must choose applications that provide authentic, real-time global data for accurate screening.
● Advanced Algorithms
Advanced search algorithms are necessary for accurate detection. This is majorly helpful in the customer screening and monitoring process. For instance, if some error is made while inputting customer details, it will hamper the screening and monitoring process. Hence, your screening solution must have advanced search algorithms for the application’s accurate functionality.
● API Integration
The application must be integrated with the API software. This feature dramatically reduces the manual labor of screening and verification. All functions, like digital identity verification for anti-money laundering and global database screening, become automated, unburdening compliance staff from long, hectic work hours. Hence, an AML application with API integration is a must to achieve more accuracy in complying with AML laws.
● Software Cost
Cost is also an important aspect to acknowledge. There are some very expensive software programs that offer several advanced features as different business sectors have different demands. You need to choose the software according to the requirements and magnitude of your business. Selecting an overly expensive application for a small-scale business might not be justified.
Final Thoughts
The AML applications are constantly evolving; thus, it might sometimes become a bit challenging to choose the appropriate one that will provide features like digital identity verification for anti-money laundering, global data screening, etc. Hence, abiding by these four criteria might simplify the process for you.
Mark Johnston is the author of this article. For more details about KYB Fragmented Identity Signals please visit our website: incode.com