Are you fed up with manually spending hours monitoring client transactions for suspicious activity?
The CEO of one large financial institution said, “Our compliance team was drowning in alerts, and important work was being slowed down. We needed a better way.”
The CEO realized that the scheme is the proper adoption of the appropriate technology that will free up resources without compromising controls.
Most banks and institutes are facing the same issue. Increasingly strong regulations governing AML Check OR KYC compliance have increased the workload for such establishments.
Every transaction must be manually verified, which is inefficient and takes too much time. Also, it increases the risk due to some suspicious patterns being missed in the due process.
This is where automated solutions for AML monitoring will aid in facilitating a compliant workflow and reducing risks.
In this article, we will discuss how Automated AML Solutions can save organizations time and money effectively.
Streamline AML compliance
A Digital AML Solution based on automation can help streamline compliance workflows by continuously monitoring transaction activity 24/7.
Advanced systems are now able to screen up to 10,000 transactions per second, flagging any suspicious patterns to the compliance team for review.
This is all done by offloading routine screening to technology, freeing analysts to review in-depth high-risk cases. This strengthens an organization’s controls without overwhelming the compliance function.
Bonus: Knowing how much more efficient the compliance process becomes using automated tools is a critical first step. Just read on to find out the best AML screening solutions.
Free analyst time for risks
An automated AML solution frees up 50-70% of analysts’ time by automating the first-line monitoring.
Freed-up time is better utilized to analyze complex cases that need a human expert to review them.
The solution deals with large volumes of alerts from daily transactions and eliminates hours by the analyst that can be spent sifting through low-risk data.
They will be in a position to focus more on the client and the transaction, which will be basically high risk and potentially affect the financial institution if left undone and with much seriousness.
Continuously screening all activity.
Unlike human reviews, the automatic AML system continuously monitors customers’ activities 24/7 without breaks.
In real-time, it screens both transaction and customer profiles to identify abnormalities in the pattern. No change in behavior or transactions will ever remain suspicious.
Screening complements normal business hours, which encompasses a much larger proportion of monitoring using human analysts. It speeds up the process of identifying and addressing threats.
Machine learning detects patterns.
Machine learning can ascertain complex suspicious patterns of behavior, with the transaction over-time monitoring mechanism making its models smarter.
Some get as high as over 95% accuracy in the detection of suspicious activities and can pick up on subtle anomalies that compliance officers might not notice.
This can automate the analysis of not only structured but also unstructured data points, which could lead to money laundering.
Rules adapt to behavior
Unlike static rules, the rules-based engine that exists in an automated AML solution can learn over time based on how the customers are actually behaving.
As it processes more transaction and customer data, the solution fine-tunes its risk assessment.
The rules distinguish better between typical transactions and abnormal ones. They adapt to contextual changes.
This ensures higher accuracy in scoring and priority alerting to the finance company during transient risk.
According to a new study, it has been established that AI-driven AML systems can reduce false positives by up to 40%.
Higher monitoring throughout
Advanced automated AML solutions are going to be said to identify and prevent 95% of suspicious transactions by 2024.
Therefore, it is increasingly unlikely that global institutions will be approached with financial crimes.
Catch issues before impacting
Based on the present trend, the global anti-money laundering software market will amount to USD 5.91 billion by 2027.
Digital AML Solutions are increasingly becoming needed to stay relevant in the evolving demands of AML Compliance solutions for finance firms.
Regain productivity for others.
Freeing up as much as 50% or more analyst person-hours weekly, financial institutions benefit from recent studies that show an improvement of 35% overall compliance efficiency.
These resources can be deployed for value-adding tasks such as audits, risk assessments, and strategy projects.
Outsourcing screening to an automated AML solution multiple times the in-house productivity, allowing a compliance division to take on strategic initiatives and business-building strategies.
Strengthen defenses against crime.
Continuously adapting to change with changing money laundering trends, an automated AML solution built its defenses upon itself with time.
With $2 trillion laundered worldwide annually, estimates by the Financial Action Task Force make measures more than just effective and paired with 24/7 surveillance.It presents a unified front against financial crimes.
With the use of accuracy through machines, along with the strategic vision of in-house experts, the organization can now maintain stringent protection at a reasonable cost. This only serves to raise customer and even regulator confidence.
Find out how to increase compliance with automated AML monitoring in finance. Today, get a demonstration of our personalized solution.
