Money laundering is among the major concerns of most businesses worldwide. It is a term used to describe illicit financial activities, such as transferring money to foreign bank accounts, wrongly obtaining money from clients, and earning profits illegally. Such activities can negatively impact the business’s reputation. It can also put the firm’s future plans at stake since there will be a legal investigation. Thankfully, AML software can help businesses detect and prevent money laundering.

What is AML software?
AML software, or anti-money laundering software, uses advanced technology to monitor and supervise a business’s monetary deals and transactions internally and externally.

There are different types of AML software for banks, financial organizations, investors, fintech, and other businesses carrying out many monetary transactions every day. The tool can be used in almost every sector to prevent fraudulent financial deals.

What are the features and benefits of AML software?

Document and KYC management
This is perhaps the most crucial feature every AML software should have. Big financial institutions like banks, credit unions, and insurance agents have thousands of customers. These institutions must have up-to-date information about their customers and store copies of necessary identification documents and other proofs. With the help of AML software, officers can quickly know which customer profiles do not have supporting identification documents. They can also check whether the provided documents are accurate, legal, and government-issued. This mechanism prevents identity fraud and the creation of fake or duplicate profiles.

Account monitoring
Businesses usually have multiple accounts from where they send or receive money. Keeping an eye on these accounts manually is next to impossible. Even if an organization hires more people to track every transaction, the chances of errors will be high. AML software helps officials simultaneously monitor many accounts linked to the business without the risk of human error. For instance, it helps a bank keep an eye on current, investment, checking, and brokerage accounts, monitoring their transactions and balance. This prevents fraudulent activities by customers who own these accounts.

Transaction supervision
With the help of AML software, banks, investment companies, insurance companies, and fintech organizations track and supervise monetary transactions. For example, they check whether the transactions involve genuine customer accounts in federal and national banks. If any transaction involves a foreign bank account, the chances of money laundering will be high, and officials can immediately stop the transaction.

Alert management

Most AML software have an alert management feature that immediately alerts the officials if any fraudulent activity occurs. This could be a financial deal that does not have proper documents or a sudden enormous amount debited or credited. Timely alerts can help businesses stop money laundering and prevent monetary losses and legal lawsuits. Some AML software allow users to manage who gets the alerts and who can access the transaction details immediately. Therefore, businesses should invest in AML software with an alert management engine.

Refund and rebate management
Financial institutions like banks often provide refunds or rebates to their customers. Some AML software allow officials to scan transactions where refunds have been initiated to customers and check whether the requisites have been followed. This is another vital feature to look for to prevent suspicious activity.

Information security and management
Financial institutions store sensitive information about their customers on their servers. So, they should look for AML software with security features like access management that can prevent the theft of such data by unknown sources. The tool might also help businesses comply with legal and judiciary laws relating to customer information and monetary transactions.

The features discussed above make it clear that AML software can be of great help to banks, investment corporations, or any business that carries out financial transactions. It can prevent money laundering or illicit financial deals and help officials store necessary information. Furthermore, the tool can ensure customer details are safe and accurate.

If one plans to invest in an AML software for their business, they will come across many options in the market. A few popular AML software providers are SEON, ComplyAdvantage, FICO Tonbeller, and Trulioo. Business owners can visit the official websites of these companies to learn about the features they offer and their pricing plans. While at it, it is advisable to compare providers to determine the one that best suits a particular business’s needs and budget.