Factors to Consider When Choosing AML Software

Blog / Factors to Consider When Choosing AML Software

Anti-Money Laundering (AML) software is Regtech's solution that helps organizations meet their AML obligations. Over time, technological developments have enabled companies to use AML software instead of manual methods in AML compliance processes. AML solutions have many advantages over manual methods. Therefore, in today's technological world, AML software has become essential for companies.

Why Is AML Software Required?

With the growth of the financial services industry, the aml software market has grown and developed over time. The success of the financial services industry largely depends on customer satisfaction. Therefore, financial institutions focus on developing and providing solutions that will bring the customer experience to the top. Financial institutions have to provide these services by meeting their AML obligations. Financial institutions can provide solutions and services under AML regulations with the AML solutions they use.

Financial crimes, particularly money laundering and terrorist financing, continue to pose a major threat worldwide. Accordingly, the regulations and audits of AML regulators have increased greatly in recent years. Companies that fail to meet their AML obligations as a result of audits face severe fines. That's why AML compliance has become important for companies. AML solutions play a big role in ensuring companies' AML compliance.

Advantages of AML Software

In the past, manual controls were implemented for AML controls. Companies used manual control processes for AML controls. But with the development of technology, financial crime techniques have changed, and manual methods have become an insecure method of control. Also, although manual methods were unreliable, they created an unnecessary time cost for companies. The developed AML solutions have made all manual control processes automatic, faster, and safer.

The rise of P2P transactions has led to a growing need for effective AML and compliance measures

Data is Very Important for AML Solutions

One of the obligations of companies in customer onboarding processes is to implement risk assessment. AML Name Screening Software helps companies implement risk assessments for their customers. Different names actually call this solution. Some of these are "sanction, PEP and adverse media screening service," "customer screening service", "AML sanction screening software". The main function of these solutions is to provide companies to scan their customers in sanction, PEP, and adverse media data published by countries.

Data is very important in sanction, PEP, and adverse media screening solutions. Therefore, AML vendors such as Sanction Scanner, which provides global comprehensive and real-time data, should be preferred. Because sanction lists, PEP lists, and adverse media data are dynamic and constantly changing. Therefore, companies need to control their customers in real-time data in order to achieve the purpose of the control process. Also, with the development of financial technologies, most financial institutions started to provide international services. Therefore, these organizations should apply spherical risk assessment in comprehensive global data to protect themselves from risks.

Advanced Search Algorithms

Advanced search algorithms are needed to reduce false positives and false negatives in customer screening and customer monitoring processes. During the customer account opening processes, some errors occur in the customer name and surname information. Incorrect information or missing information can cause some failures in the "know your customer" and "customer due diligence" processes.

Therefore, you should pay attention to whether there is an advanced search algorithm in the "sanction, PEP, and adverse media screening" solutions you choose. "Match rate determination" and "fuzzy search" features are indispensable for this software.

detalied analysis of transaction monitoring and best monitoring software

API Integration

We said that AML solutions automate companies' AML compliance processes. The biggest feature that provides this is API integration. By integrating their project and AML software with the API, companies can ensure that all scanning processes take place automatically without any workforce in the background. For example, you are a financial institution that gets an average of 10,000 new customers every day. It takes serious labor to query all your new customers manually. The API eliminates this problem, and all control processes take place automatically and faster in the background.

Costs of AML Software

Costs are very important for businesses of all sizes. Who wants to choose the more expensive of the two products that will benefit the same? In the past, small and medium businesses could not use AML software because of the high costs. Small and medium-sized businesses remained vulnerable to financial crime due to costs such as per-user pricing, fixed fees, and set-up fees.

Since the day we were established as Sanction Scanner, our mission has been to provide cost-efficient AML solutions for every size of business. Therefore, we do not charge fixed costs to organizations that want to use our solutions.

 Contact us for detailed information about our AML solutions.

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