Anti-money laundering (AML) software is an umbrella term for software used in the financial and related sectors that supports the requirement to comply with the tightening legislation imposed by regulatory bodies. It can prevent or detect anomalous activity, reduce false positives, and assist companies in accurate reporting of suspicious transactions.
Globally, financial sector regulators follow the recommendations of the Financial Action Task Force (FATF) for combatting money laundering.
Flagged financial transactions or suspicious activity must be reported to the regulatory body for investigation. AML software helps organisations achieve AML compliance and generally has three facets:
Client screening software. This AML software verifies the identity of new clients at the onboarding stage. It also checks whether the new client is on any sanctions lists or other watchlists. It assesses what level of financial crime risk your business incurs in the onboarding stage and can be utilised at any stage during the client life cycle. It is inclusive of:
Transaction screening software. This AML software integrates and interprets multiple data points in transaction messages for each customer, including the identities of both sender and receiver, and establishes if either are on sanctions lists.
AML transaction monitoring software. Building on client and transaction screening software, this AML software analyses the patterns of each client’s transactions, typically against a library of rules or filters. It determines whether trends of transactional behaviour fit criminal profiles, as well as whether anomalous transactions by a client may require further investigation or not. Possible red flags raised are reviewed and analysed by AML teams and appropriate responses are decided upon, including whether a suspicious transaction report (STR) is necessary.
AML practitioners the world over face regulators on one hand, and criminals on the other. It has never been more important for the financial sector to embrace AML software.
Founded in 2015, Napier is a UK-based RegTech company with a global presence, specialising in AML compliance software for finance sector clients of any size. Central to our AI-driven solutions is our Intelligent Compliance Platform, which can bolt onto any system, providing immediate and measurable benefits to your business.
Regardless of the size of your organisation, Napier’s solution can integrate your client and transaction screening, client re-risking and ongoing KYC, and transaction monitoring needs into a user-friendly and purpose-built dashboard which will preserve your resources, save you time and money, and help you grow your business. Once on board, your dedicated customer service manager will see to your training needs on the use of our platform, and your AML team can access continuously upgraded resources and guides.