According to the United Nations Office on Drugs and Crime (UNODC), the estimated amount of money laundered globally each year is 2 to 5% of global GDP, or $800 billion to $2 trillion in current US dollars.
Anti-Money Laundering (AML) is a term common in the financial and legal industries to detail the legal checks that require financial institutions and other regulated entities to prevent, detect, and report money laundering activities. It refers to a category of laws, regulations and procedures purposed to block criminals from concealing illegally gained funds as legitimate income.
AML laws and regulations mark criminal activities especially about market falsification, trade in illegal goods, corruption of public funds, and tax evasion, as well as the approaches that are used to cover these crimes and the money drawn from them.
Criminals mostly attempt to “launder” the money they receive through illegal acts such as drug trafficking, so that it can’t easily be traced back to them. One of the most regular methods is to manage the money through a legitimate cash-based business owned by the criminal organization or its confederates. The apparent legitimate business can deposit the money, which the criminals can then withdraw.
Money launderers may also slip cash into foreign countries to deposit it, deposit cash in smaller supplements that in all probability raise doubt or use it to buy other cash instruments. Launderers will sometimes invest the money, using deceitful brokers who are ready to overlook the rules, in return for a significant share of the spoils.
Hence, it becomes an imperative of financial institutions to keep an eye on their customers’ deposits and other transactions to make sure they aren’t part of a money-laundering set up.
AML Solutions and AML systems helps financial institutions comply with Bank Security Act and other financial regulations designed to prevent financial crimes on the local and global scale. Statista projects that in 2023, the revenue of the anti-money laundering software market worldwide would amount to about 1.77 billion U.S. dollars.
Features to look for in AML Solutions and AML systems
Behaviour Analytics: Statistical models and techniques have long been used to predict anomalous transactions and fraudulent customers or to detect anomalous relationships within a financial system. With the gradual uptrend in the four ‘Vs’ of big data (volume, veracity, variety and velocity), real-time fraud detection has been the need of the hour. In the area of financial crime and compliance, advanced analytics is widely used to predict customer intent from subtle behavioural features like click speed, time spent in a webpage, IP address, products purchased online and surfing behaviour used by AML Solutions and AML systems.
Case Management: In financial services, managing and resolving risk, compliance and fraud issues across multiple functions and specialties presents daunting challenges. Case management systems can collect disparate sources of information that an analyst needs to resolve an issue. The most efficient means to facilitate effective case management is by using case management software because it eliminates subjectivity from the resolution of cases and creates consistency between cases.
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Compliance Reporting: In order to combat financial crime, banks, credit unions, and a variety of other financial institutions across the world, are required to develop and put in place Anti Money Laundering (AML) Compliance Programs. All financial institutions should have a strong understanding of what an AML compliance program needs to achieve, and how to create a program which works for them. This makes compliance reporting essential as a feature for AML Solutions and AML systems.
Identity Verification: Online identity verification is the starting point for AML compliance in a digital world. If the EU’s Fourth Anti-Money Laundering Directive is any indication, governing bodies are becoming more comfortable with, and some would suggest even encouraging of, the use of digital customer identity verification. AML and KYC go hand in hand when it comes to the role of online identity verification.
Investigation Management: Investigation management helps drive targeted AML and anti-fraud outcomes. Having investigation management feature in the AML Solutions and AML systems can reduce cycle time while eliminating backlogs and can reduce data aggregation times and cut false positives without losing critical data. More targeted and actionable alerts can reach resolutions more quickly.
PEP Screening: In financial regulation, politically exposed person (PEP) is a term describing someone who has been entrusted with a prominent public function. A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence that they may hold. There is a need to conduct separate checks against PEPs to protect from exposure to the menace of financial crimes.
Risk Assessment: Financial institutions must implement risk management as a feature in the AML Solutions and AML systems to enhance their controls in the complex environment. Risk Assessment forms the basis for applying to AML compliance programme. AML Solutions and AML systems must include risk assessments and customer screening policies and procedures and policies regarding high risk and special categories of customers.
SARs: Suspicious activity reports (SARs) are central to effectual AML, and of vital importance to regulatory and law enforcement agencies. Improved SAR quality, from investigating and documenting the suspicious activity to writing insight-filled narratives that serve as a front line in the fight against financial crime is a must have feature for a good AML Solutions and AML systems.
Transaction Monitoring: Transaction monitoring feature in AML Solutions and AML systems allows banks and other financial institutions to monitor customer transactions daily or in real-time for risk. By combining this information with analysis of customers’ historical information and account profile, AML Solutions and AML systems can provide financial institutions with a whole picture analysis of a customer’s profile, risk levels, and predicted future activity, and can also generate reports and create alerts to suspicious activity.
Watch List: With Watchlist feature in AML Solutions and AML systems, organisations can quickly identify individuals and entities that present a potential source of risk to their business, territory, or overall safety, and then efficiently manage the compliance review and reporting process. Watchlist feature helps organisations minimize their exposure to the risk of financial crime and enables them to comply with increasingly complex domestic and international legislation and regulation.
We have compiled a list of 10 anti-money laundering software, AML Solutions and AML systems, based on extensive research:
Top 10 anti-money laundering software – FileInvite
FileInvite mechanises the process of collecting AML documents from the clients with a simple process and on a secure interface. All that must be done is create and send a FileInvite with the required information. The client then uploads the files to a secure portal where you can approve or decline the information that has been submitted. With FileInvite reminders could be set, and the AML Solutions and AML systems can sync with cloud storage like Google Drive. They also have a free version available.
- Features: Investigation management, case management, compliance reporting, identity verification
- Price: FileInvite offers a 14-day free trial with unlimited functionality. Post-trial, the price is US$12.00/month.
Top 10 anti-money laundering software – Clear View KYC
Clear View KYC offers entity and individual name screening against 10 international sanction lists including (OFAC SDN, OSFI, UK, AUS, NZ, Switzerland SECO) as well as PEP screening. Their backend cloud server is serving over 300 financial institution in 30 countries. Companies can connect with their current or legacy system using a simple SOAP/XML or JSON/REST web-service call. They also have a free version available.
- Features: PEP screening, Watch list
- Price: Clear View KYC doesn’t offers any free trial and the starting price is US$500.00/month.
Top 10 anti-money laundering software – ProcessGene GRC Software Suite
ProcessGene GRC Software Suite is developed ProcessGene to serve multi-subsidiary companies. Businesses and governments worldwide use ProcessGene solutions to manage and control risks, assure compliance to policies and regulations, manage corporate governance programs, and perform internal audits.
- Price: ProcessGene offers a free trial for the AML Solutions and AML systems. Post-trial, the price is US$30.00/month.
Top 10 anti-money laundering software – ML Verify
ML Verify is a cloud based anti-money laundering and client due diligence platform, with a goal to take advantage of technology to simplify the routine and help businesses to integrate customers in a quick and effective manner.
ML Verify provides with a custom branded client portal, electronic ID verification, automated PEP and financial sanction checks and enhanced due diligence, to mitigate the cost and resources earmarked for AML compliance significantly.
- Features: Bespoke document requests, Manage AML Policies & Procedures, automatically schedule client reviews, detailed event logging, digital ID checks, custom client portal for document upload, integrated with Companies House, automated PEP Searches, automated Financial Sanctions search
- Pricing: ML Verify has 60 days for free. After the free trial, packages start at around £19 (ex. VAT) for up to 250 clients.
Top 10 anti-money laundering software – Biz4x by 4xLabs
Founded in 2012, Biz4x by 4xLabs is used by Currency exchange, foreign exchange, bureau de change, money services businesses, money changers, forex bureau, accountants, auditors, lawyers, corporate secretaries, financial institutions & fintechs. Biz4x helps money services businesses, professional services, fintechs and financial institutions become more efficient, compliant and relevant by providing access to live market data, compliance features (AML customer screening, KYC document repository, risk-based compliance policy) a fully audited transaction management system, digital storefronts (rateboards, online directory, kiosks, multi-currency card) and wholesale trading capabilities.
Biz4x doesn’t come with a free version.
- Features: Transaction monitoring, PEP Screening, Watch list, Compliance reporting, Risk assessment, Identity verification
Top 10 anti-money laundering software – SAS Anti-Money Laundering
SAS Anti-Money Laundering is a Cloud-based anti-money laundering solution that provides tools for data management, analytics and suspicious activity monitoring. It is an anti-money laundering solution designed for banking and financial institutions that helps manage suspicious activity monitoring, reporting and alerts.
These AML Solutions and AML systems don’t come with either free version or free trial.
- Features: Behaviour analytics, investigation management, case management, watch list, compliance reporting, risk management, SARs
Top 10 anti-money laundering software – Actimize
Actimize, NICE Actimize, is used by cloud-based analytics solution that helps businesses of all size detect, prevent and investigate money laundering and fraud along with compliance violations across organization. It delivers real-time, customer-centric fraud prevention that supports a holistic, enterprise-wide fraud management program.
- Features: Behaviour analytics, transaction monitoring, compliance reporting
Top 10 anti-money laundering software – AML Manager
AML Manager by Fiserv, one of the few AML Solutions and AML systems that could be installed on Mac, combines technologically advanced features and a user-friendly, data-rich interface with powerful prevention and detailed tracking tools. It makes investigation of suspicious activity simpler and more effective. Based on behavioral profiling and peer group analysis and rules, the intelligent transaction monitoring in AML Manager uncovers only those alerts with the highest degree of risk, which significantly minimizes the number of false positives.
Top 10 anti-money laundering software – AMLcheck
AMLcheck is used by regulated entities including: credit entities, insurance companies, promoters and real estate agencies, brokering companies and stockbrokers, exchange offices, jewelers and gambling casinos. AMLCheck, by RiskMS is an advanced technological solution that enforces the legal requirements by identifying people or assets in the onboarding process, scoring the clients profile from the database, based on the available information, and making post-execution analysis of the transactions by defining control scenarios to detect suspicious behaviour.
These AML Solutions and AML systems comes with a free version and is another software that could be installed on Mac.
- Features: Behavioural Analytics, Case Management, Compliance Reporting, Investigation Management, PEP Screening, Risk Assessment, SARs, Transaction Monitoring, Watch List
Top 10 anti-money laundering software – Token of Trust Identity Verification
Founded in 2015, Token of Trust Identity Verification is an online merchant dealing with high-risk ecommerce, KYC/AML/CDD compliance requirements, consumer data privacy laws, and global users. Trust Identity Verification by Token of Trust – a global trust platform that provides merchants with a suite of identity verification tools including Document Checks, Facial Verification, Phone Verification, Watchlist Screening, ID Record Checks, and Online Social Network Verification.
These AML Solutions and AML systems doesn’t have a free version but has a trail version.
- Features: Behavioural Analytics, Identity Verification, PEP Screening, Risk Assessment, Transaction Monitoring, Watch List