AML compliance checklist for efficient AML screening in 2020

AML compliance checklist for efficient AML screening in 2020

2019 brought a plethora of AML regulations for businesses and non-compliance is no more an option in 2020, it’s an obligation. 

When AML compliance is inevitable, let’s see how it can be performed smartly to get efficient results. This checklist will help businesses thinking about compliance and those who want to update their compliance operations in 2020. 

The amount of globally laundered money is about 2 – 5% of global GDP in one year (report of the United Nations). And the report of the Financial Conduct Authority (FCA) stated that at least £100bn was laundered through the UK. The need for an efficient and constructive AML compliance is inevitable for global business entities. 

Efficient AML compliance is practicing obligatory scrutiny on customers while adopting a data-centric approach in collecting and analyzing customer data to gain useful risk-management insights. The customers’ data collected through automated due diligence solutions should be used to perform customized risk management and to assign customers a realistic risk rating. 

In short efficient AML compliance brings in several other benefits apart from eliminating non-compliance penalties. It helps businesses onboard secure clientele, develop transparent B2C and B2B relationships, improved brand reputation and market value.

AML Compliance Checklist - Infographic 2020 

2019 changed the facet of Global AML Regulation

2019 was a very unpredictable year when it comes to AML/KYC regulations. The global regulatory authorities drafted some strict AML regulations and also increased the scope of those regulations. Several new industries were also added to the scope of global AML regulations. 

FATF took a revolutionary step and issued a digital ID systems guide for the reporting entities to utilize when performing digital identity screening on their customers. The draft of the digital ID system is issued for edits from the stakeholders and it is expected to motivate businesses to move towards automated AML screening of their customers.

On the other hand, the European Union (EU) amended the Fourth Anti-Money Laundering Directive (AMLD4) and published the AMLD5 in the official journal of the EU in June 2018. It increased the scope of the AML regulations to the virtual assets sector, prepaid cards, and real estate sector. The identity verification threshold for the prepaid cards is reduced to EUR 150 from EUR 250. Also, the identity verification threshold for remote payments is set at EUR 50. 

Also, AUSTRAC, the U.S treasury, and the UK regulatory authority introduced new regulations and expanded the scope of the current AML regulations. Read more about these changes in this blog.   

AML/KYC – how 2019 changed the landscape of global regimes? 

Although the regulations changed a lot, the primary compliance requirements are the same in global regulations and they are mentioned below. But these are just the requirements following which would just be compliance and following these regulations smartly will help in efficient and productive AML compliance in 2020. 

Five Components of AML Compliance

Below are the primary components in global AML/KYC regimes, implemented by authorities such as FATF, FinCEN, FINTRAC, FINMA, etc. 

Policies, Controls and Procedures

The policies, controls, and procedures of the company must be aligned with the AML regulations. Ensure that the due diligence, customer verification, record keeping, risk assessment, and reporting operations of the company are aligned with the regulations. The AML regulations changed a lot in 2019 and the businesses must align their compliance procedures with the changed regulations. 

Awareness and Traning of Employees

It is important to train the employees at all hierarchical levels to comply with AML regulations. Making compliance a habit of the employees is important. A sense of accountability must be maintained at all levels. The Danske bank scandal which shook the financial world also happened due to a lack of accountability at an executive level.  

For efficient AML compliance train your employees regarding the changes in the regulatory framework and how they should play their part in making the company fraud-free. As efficient compliance is possible with a team effort from all the employees. 

Record Keeping

A proper updated record of customer information and AML screening must be maintained in a secure manner. In some regulations, it is to be maintained for five years even after a relationship with a client is ceased. 

For efficient AML screening, this record must be used to predict the future prospects of the company and assign customized risk ratings to the customers. 

Customer Due Diligence (CDD) 

The most important part of AML regulations is the verification of the customers and business entities related to your business. For customer due diligence the basic identity verification along with AML screening must be practiced. The customers must be verified against watchlists, sanction lists, and PEPs lists. 

For efficient AML compliance, don’t just verify the customer against domestic watchlists but practice global risk prevention and verify the customers against global watchlists. 

Reporting

Reporting is a crucial part of AML compliance. It includes reporting the unusual transaction that is above the predetermined threshold made by your customers. It helps in mitigating the unpredicted risk coming from businesses. It increases the credibility of a reporting entity. 

Devise efficient AML screening in-house protocols to keep an eye on the transaction of all customers and especially the high-risk entities. 

AML Compliance Checklist for efficient AML compliance 

Digital AML compliance solution helps in automated AML screening of prospects. And also shares the customer screening burden of the reporting entity. Below is the AML compliance checklist to experience efficient AML compliance in 2020 with the help of an AML screening solution. 

Practice global coverage in Customers Verification

In order to practice enhanced due diligence, the businesses must perform global AML screening on their customers. While onboarding a global clientele it becomes difficult for the businesses to practice AML screening on people coming from different corners of the world with ID cards in different languages. 

An AML screening solution helps in performing global AML screening on individuals. And on the businesses as well, so helps you stay one step ahead of fraudsters and also competitors who stick to minimum AML compliance requirements. 

Ongoing monitoring of customers

Performing customer due diligence is mandatory but it is required to be performed only at the time of onboarding a customer. On the other hand, efficient AML compliance is not limited to just minimum protocols so perform AML screening on your customers (especially the high-risk entities) at regular intervals. The risk status of a customer could change anytime. Ongoing AML screening of customers helps in identifying the in-house risk. 

Perform verifications but with Security

Not only money but the personal credentials of your customers are also an asset that needs to be protected from hackers. So be sure that the customer data is in safe hands. Also, AML regulations come with data protection laws. The GDPR (General Data Protection Regulation) in the EU and CCPA (California Consumer Privacy Act) in the U.S are some common data protection regulations imposed on businesses collecting the data of their customers. 

Using the AML screening solution that complies with the GDPR regulations also share the burden of data protection regulations. 

Proactive risk management through valuable risk insights about your prospects

The valuable insights about the prospects (individuals and businesses) help in crafting a proper risk management framework. For example, the nationality verification helps in deciding whether a customer should be verified under CDD or Enhanced Due Diligence (EDD). 

A customer could claim to be from a low-risk country, ID card screening and AML screening against global watchlists will ensure that the person is actually who he claims to be. 

Record keeping through Intuitive back office

Record keeping is important for reporting entities. A digital AML screening solution reduces the burden here as well with the help of an intuitive back office. The verification proof of real-time verification is stored in the back office and it can be used to practice efficient AML compliance on your platform. These proofs help businesses in proving that they actually performed verification on a certain customer.

The world is changing and businesses need to move towards automation to perform their compliance operations in a smart manner. Following the minimal regulations is no more enough. Businesses need to take voluntary steps towards AML screening of their customers to practice efficient AML compliance in 2020. Following the above-mentioned AML compliance checklist will help in proactive fraud prevention and unlocking more growth opportunities.

Swedish Bank SEB Accused of Money Laundering

Swedish Bank SEB Accused of Money Laundering

Investigations done by the news agency TT and broadcaster SVT revealed that 25 SEB clients recorded transactions with 18 corporate entities linked to the Magnitsky case. Tax lawyer, Sergei Magnitsky, died in a Russian prison in 2009 after he accused Russian officials of siphoning money from the firm he was working for, Hermitage Capital. Hermitage Capital was the largest foreign investment fund in Russia at the time and Mr. Magnitsky accused the Russian tax officials of embezzling $230 million from the firm. 

Approximately 194 clients at Skandinaviska Enskilda Banken AB are doubted using the bank to launder money through Swedish and Baltic accounts with about 474 million Swedish kronor ($49.4 million) connected with the Magnitsky case. 

The accusations come days after Australia’s Westpac bank was accused of 23 million breaches of anti-money laundering and counter-terrorism financing regulations. Similar accusations were made at Swedbank and Denmark’s Danske Bank. The Danske Bank is being investigated on allegations that around $230 billion in dubious funds from Russia and other former Soviet states entered Europe through its branch in Estonia.

SEB Chief Executive Johan Torgeby told Reuters after SVT reported on the story, 

“In the comprehensive analysis that we have made of our business in the Baltics, we have not seen that SEB has been used for money laundering in a systematic way.”

Torgeby also talked about the actions required of this report and said, “The program showed us nothing new which we need to act on today.” 

SVT reported that the SEB client list contained ‘red flags’ – names associated with familiar proxies for Russian non-resident corporations suspected of money laundering. The report by SVT was based on a cache of leaked information provided by the Organized Crime and Corruption Project investigative reporting consortium. 

Providing past date, SEB showed that nonresident money flows in Estonia. In between 2005 and 2018, around 25.8 billion euros ($28.4 billion) moved in and out of its nonresident Estonian customer accounts related to low transparency customers. 

“These flows cannot be equated to confirmed money-laundering activities, but there is rather an increased risk for money laundering here,” the bank said.

SVT said its report was based on a cache of leaked information provided by the Organised Crime and Corruption Project investigative reporting consortium. 

US to Rigorously Implement Anti Money Laundering in Crypto

US to Rigorously Implement Anti-Money Laundering in Crypto

A rule requiring cryptocurrency firms to share data about their customers will be strictly implemented by the US government. The rule is for such cryptocurrency companies that are involved in money service businesses such as digital asset exchanges and wallet service providers. 

The “travel rule” demand the cryptocurrency exchanges to verify their customer’s identities as well as identify the original parties and beneficiaries of transfers $3,000 or higher. The travel rule also includes the transmission of information to counterparties if they exist. The travel rule is part of anti-money regulations. 

On November 15, The director of the Financial Crimes Enforcement Network (FinCEN) said, 

“It (travel rule) applies to CVCs (convertible virtual currencies) and we expect that you will comply period. […] That’s what our expectation is. You will comply. I don’t know what the shock is. This is nothing new.” 

Blanco also informed further that the information required is not hard to obtain. He said, adding, “All we’re asking for is name, address, account number, transaction, recipient, and amount.”  

He also added, 

“So when you tell me you don’t know who’s on the other side, you’ve got a big problem. Because you are required to know, and that is what our expectation is going to be.”

The US government’s move comes after it was reported that the cryptocurrency crime soared into billions of dollars. Global investigators have been engaging with major money laundering hubs that are the center of the virtual currency. In a recent report released in August by Ciphertrace, cryptocurrency thefts, scams and fraud may exceed more than $4.3 billion this year. 

AML Technology Eradicating the Perils of Money Laundering

AML Technology Eradicating the Perils of Money Laundering

In the past few years, we have seen a substantial increase in the number of legislations regarding how legal entities especially financial institutions combat financial crimes like terrorist funding, money laundering, and identity theft. A report estimates that in 2009, criminal proceeds amounted to 3.6% of global GDP, with 2.7%  (or USD 1.6 trillion) being laundered. Businesses are in dire need of KYC and AML compliance to fight back all such frauds. Business owners are deploying various measures against scams but the AML compliance program is effective out of all. 

AML compliance program is basically a methodology that defines the role that governs how a company monitors accounts, detects and reports financial crimes to relevant authorities. AML screening tackles with the intrinsic money laundering risks the company faces or can face in the future. The role of legislation is crucial in order to know how the AML compliance program should work. Customer screening for anti-money laundering is for completing due diligence to prevent and deter money laundering, terrorist financing, and other financial crimes and frauds. 

Why AML Compliance?

AML( Anti Money Laundering) practices have been used for businesses around the globe and all regions require the businesses to perform due diligence on their customers in one way or the other. AML compliance is not as difficult for organizations to follow as it seems. An investment of a few thousand dollars can obviously demit the loss of millions in penalties that businesses will have to pay eventually. 

To detect suspicious transactions and analyzing customer data, Anti-money laundering AML screening has been employed by financial institutes and other businesses. To filter customer data and classify it according to the level of suspicious and inspect it for errors is done by AML systems. Any sudden and substantial increase in funds or a large withdrawal of cash includes such anomalies.  AML checks are not for money laundering but also put a tight reign on frauds like tax evasion, terrorist financing, etc. AML compliance has a system to report money laundering activities to relevant authorities evaluating the client’s risk profile. 

Artificial Intelligence Enhancing AML Checks:

 

Artificial intelligence (AI) has the potential to transform financial institutions (FIs), disrupting every aspect of financial services, from the customer experience to financial crime. AI technology can be utilized by FIs in a number of ways, with anti-money laundering (AML) one of the main areas of focus. FIs can employ AI to analyze large amounts of data, to filter out false alerts and identify complex criminal conduct. It can identify connections and patterns that are too complex to be picked up by straightforward, rule-based monitoring or the human eye.

FIs are awakening to the potential of AI, both internally and externally, and beginning to embrace it. According to the Digital Banking Report, 35 percent of financial organizations have deployed at least one machine learning solution. Artificial intelligence has the ability to completely transform how banks perform AML and Know Your Customer (KYC) compliance. Additionally, for this need of anti-money laundering, artificial intelligence systems are capable to mine a great volume of data to prevent risk, which simplifies the process of identification of high-risk clients.

 AI is crucial when performing repetitive tasks, saving a lot of valuable time, resources and efforts that can be refocused on other tasks. AI technology including natural language processing NLP and machine learning ML can create automation in process of AML screening.

How is AML Compliance impacting Businesses?

 

AML compliance can intelligently extract risk-related facts from a huge volume of data making the process of identity verification a lot more smooth and risk-free. It has the ability to track the alterations in regulations around the globe. It fights against financial crimes by identifying gaps in customer information by financial institutions and provide Know Your Customer ( KYC) alerts. Here are ways in which  AI has revolutionized AML screening to help the client onboarding process easy, resulting in bringing higher revenue and lower fraud risk to the business:

 

  • Enhanced Due Diligence:

 

Artificial intelligence can automate AML screening that helps automate the creation and updating of the client risk profile to match this against the classification process i.e high, medium or low risk that ensures continuous compliance throughout the client life cycle. Moreover, it assists the process of identity verification easier for enhanced due diligence.

 

  • Improved Client On-Boarding:

 

When applied to workflow automation, AI along with AML  has the ability to transform the generation of documents, reports, audit trails and alerts/notifications.

 

  • Risk Assessment :

 

AML compliance can help mitigate risk as whenever a client is highlighted with a suspicious activity system can block resulting in the removal of any sort of risk. It gives a full understanding of the different tiers of risks a customer presents and how to mitigate them

 

  • Detection of Suspicious Activity:

 

Any suspicious activity can be detected and immediately reported to the concerned department without putting yourself in trouble. The goal here is to have systems in place for prompt detection of activities associated with money laundering. For instance, suspicious activity can be:

  •  Increase in cash deposits of or business without any obvious reasons.
  •  Providing very little information when applying for a bank account.

 

  • Managing Regulatory Compliance and Change:

 

AML screening ability to counter patterns in a vast range of text enables it to make an understanding of all changing regulatory environment. Furthermore,  to analyze and classify documents to extract useful information such as client identities, products, and procedures that can be affected by regulatory changes. It can be instrumental in helping banks and other financial institutions to fight back financial frauds. 

 

  • AML Screening and Investigation:

 

A recent Dow Jones-sponsored ACAMS survey revealed the most challenging for bank compliance is of false positive. Underpinning the alert generation method with AML may end up in fewer false positives. whereas they’re a major part of the AML compliance method, alerts don’t seem to be enough to support an efficient and thorough investigation method. What’s needed is that the linking of high-quality information to the alert (via interpretation associate degreed link analysis) to supply a correct, graphical illustration of the legal entity structure. AML beside AI will facilitate to leverage antecedently performed steps within the alert investigation method to formulate a suggested next steps approach.

Read more about how AML regulations can help prevent financial crimes:

AMLD5- Closing the loopholes of AML:

 

Consider new technologies and improve transparency AMLD5 is here to fulfill the EU’s next-generation AML requirements:

The goals of 5AMLD are as follows:
  • Impact on  financial intelligence units and facilitate increasing transparency on who really owns companies and trusts by establishing beneficial ownership registers
  • Prevent risk associated with the use of virtual currencies for terrorist financing and limit the use of prepaid cards
  • To secure the financial transaction to and from the high-risk third parties. 
  • The access of financial intelligence units to information including bank account registers must be enhanced. 
  • Ensure centralized national bank and payment account registers or central data retrieval systems in all member states.
3-stages-of-money-laundering

3 Stages of money laundering – How AML screening guards your business

The United Nations Office on Drugs and Crime found that 2 to 5% of global GDP is laundered every year. It is a global epidemic which starts with acquisition of illegal funds through criminal activities and conducted through banks and businesses. The ultimate adverse effects of money laundering impact banks, businesses, and country economies.

Money launderers are a very clever lot. They are constantly looking for loopholes to exploit. They can sneak into your business as well, which is why it is essential that you understand how they operate. Banks and financial institutes are their primary target but other businesses are on their hit list too. One effective method in this regard is to implement AML screening.

Money laundering is the illegal movement of black money through several transactions, conducted through financial infrastructure. It is conducted in three stages to manipulate the authorities.

3 Steps of Money Maundering

There are three stages of money laundering, each with a unique purpose. The first stage is placement, second is layering and third is integration.

1- Placement of Money

This is the first stage where the process starts with the physical placement of money in the financial infrastructure, for instance, in a bank, casino, local or international shop or (currency exchange). It is conducted by investment in financial and non-financial assets.

In this stage, the criminal entities enter the business ecosystem as a customer, investor or vendor. Placement is conducted through several methods, a few are mentioned below.

  • Smuggling Currency Physical movement of currency or financial instrument such as bonds across the border
  • An Accomplice BankA banker that knowingly accepts deposits from smugglers and criminals
  • Currency exchanges – Where there is liberalization of the foreign exchange market, there is room for laundering money
  • Securities broker – The securities brokers who would put investment into different tranches to divide it to thwart any suspicions
  • Blending funds – Criminals might open front companies to fool the authorities. Then, they start mixing the dirty money with the clean one. It’s akin to hiding cash within cash
  • Asset Purchases – The most obvious form of laundering money is to purchase big assets. Once the transaction takes place, tracing back the source of income can be a challenge

2- Layering of Money

The second stage of money laundering is layering.

Layering is conducted to conceal the original source of funds. Businesses and financial institutions are used in every layer of money laundering. Below are some common methods used for layering:

  • Converting dirty money into financial instruments. Banker’s drafts and money orders are readily used for this
  • Buy and sell. In this case, the criminal buys a large asset with illegal money then sells it, locally or internationally. After this buy-sell cycle, tracing the asset back to the criminal’s source of income becomes difficult.       
  • Buying and selling real-estate assets, financial assets, etc.

3- Integration of Money

This is the phase where laundered money is brought into the economy, usually through the banking system. It is different from layering because here usually an informant tells the law enforcement agencies about it;

  • Property Dealing – Buying property from illegal money is a common form of laundering money. Usually, this is done through a shell company.
  • Shell Companies and Fake Loans – The culprits create a fake company and then give a loan to themselves. This loan amount is the laundered money
  • Foreign Banks as Accomplices – If a foreign bank is an accomplice in laundering money it would be difficult for law enforcement to investigate and act since such banks are protected by international laws.
  • Bogus invoices from import/export – Money launderers also use import and export as a way to enter black money into the system. They would exaggerate a bill to justify the payment by creating fake invoices or inflating the value of funds received from exports.

Most common Businesses used for Money Laundering

It is a common belief that financial institutions, especially banks are used for money laundering. Criminal entities have found loopholes in every industry to perform layers of money laundering. Banks have a major risk because they’re used in all stages of money laundering. 

That is why banks and businesses are required to perform KYC/AML screening on their customers, and vendors as well. Global and domestic authorities are always in a bid to find any loopholes in the financial infrastructure that might be exploited by criminal entities. Commonly exploited businesses for money laundering are listed below:

Banks: Banks are exploited for placement, layering, and integration of money. Banks are used for transferring money and making sales and purchases of financial assets. 

Fintech businesses: Fintech has provided financial services to the unbanked people. Online payment solutions, cryptocurrencies, and digital exchanges are used for money laundering. Primary reasons are lack of regulatory obligations, weak security protocols, lack of customer screening practices, etc. 

Real-estate: Real-estate is used in layering of money. As this sector is still not regulated in many regions of the world, criminals find it easy to manipulate the proceeds of real-estate deals. 

E-commerce: Criminals use fake or stolen identities to onboard e-commerce platforms. It helps them to make purchases with illegal money, later they sell the goods, to make layers of transactions. Sometimes they pose as a vendor and use fake identity to sell goods to a legitimate merchant. Later they manipulate the business proceeds to incorporate black money within. 

Legal professionals: Law firms are exploited in the integration phase of money laundering. In this phase, they use the services of legal firms to integrate their money. They hide the original source of money and utilize the professional expertise of legal professionals to legitimize their black money.

How to Keep Your Business Safe

Compliance measures such as Know Your Customer (KYC) and Anti Money Laundering (AML) are extremely helpful in keeping your business safe. Since in the majority of money laundering cases, some form of banking service is involved, AML screening and KYC compliance are mandatory for banks and financial institutes.

Compliance is not that difficult especially when you are using professional AML screening solutions. When a bank gets defamed for helping in laundering money it is not necessarily the entire bank that is responsible. It could be just an individual acting in their individual capacity.

By integrating third-party services such as Shufti Pro, the banks can put in highly effective AML screening and KYC checks. This not only protects your business from money launderers but ensures compliance as well. Video KYC will help banks to eliminate cybercrime by screening their remote customers online through a live video call. It is the substitute for in-person verification and empowers banks to gain competitive edge by onboarding customers online from all over the world.

AML Checks

AML Checks: An Emerging Frontier in RegTech Revolution

The Anti Money Laundering (AML) landscape has been around since the signing of BSA (Bank Secrecy Act) in 1970. Financial institutions have been battling with compliance regulations since forever. Over the years the financial services industry has confronted $26 billion by way of non-compliance fines. To enable the banking sector to fulfil its compliance obligations, the RegTech industry has come up with some of the most technologically advanced solutions. They are able to enhance the capability and output of compliance teams in banks and financial service firms. From advanced analytical tools to anti money laundering checks, banks are now able to fight fire with fire.

Overspending on AML Compliance

The risk of money laundering has increased significantly due to the fact that overseas transaction volumes have increased making the financial system more vulnerable to financial crimes. The constantly changing AML regulations and the increase in non-cash payments have added to this risk infinitely as well. But the banking sector has been dealing with all these challenges by investing heavily in the expansion of their compliance teams. This has not only increased their annual spending on AML compliance – $3.5 Billion – but has made the process, if anything, more complicated than ever before. In the US compliance staff in banks has increased exponentially.

The Drawbacks of Prevailing AML Systems

For the moment, AML systems currently resemble operational units that have huge overheads and still employ manual procedures to manage client profiles. The cost of such compliance teams would have been acceptable if only they were as effective. Some of the major drawbacks of these AML systems include;

  • Large amounts of unstructured data make it difficult for different teams to accumulate and organise information. This ultimately causes operations to slow down, creating friction in onboarding procedures. Banks still resort to calling each customer individually to update their documents for KYC (Know Your Customer) procedures. Simple tasks such as these can be easily automated.
  • The systems in use for analysing client data are outdated and slow. Such legacy systems use fixed rules for analysing customer data and are unable to account for unforeseen scenarios. This rule-based approach generates a large number of false positives, that ends up wasting a significant amount of time and money to be wasted towards investigating bogus leads.
  • Outdated systems also result in erratic reporting of suspicious activity. As financial institutions deal with a large number of customer data, the system can produce an equal amount of false positives, thereby causing the compliance team to overlook legitimately high-risk cases.
  • Due diligence procedures in banks are still manual. They rely on manual identification, verification and screening of clients, which are both slow and have a higher rate of inaccuracy.
  • The complexity in financial transactions and the proliferation of faster services has made it difficult for financial companies to monitor client activity. Online payments and anonymous fund transfers also lack adequate KYC and AML procedures.

As prevailing systems are becoming more and more inefficient and costly, banks are exploring new avenues to perform AML compliance. An emerging avenue in this regard is regulatory technology or RegTech that is enabling the financial sector to implement advanced tech solutions to aid their AML compliance functions. More than anything, these systems have the ability to reduce costs and enhance the onboarding process. All such tools can make compliance systems in banks more feasible and cost-effective.

 

AML Compliance Systems and Tools

The RegTech space is now leveraging technologies like AI and big data to make streamline compliance procedures in banks and financial institutions. One such system is advanced analytics that can intelligently analyse client data and process it within minutes. The current analytical models being implemented are rather tuned to explicit regulatory and anti-money laundering requirements. Therefore, nearly 90% of the warning signals generated by them are false positives.

However, advanced analytical tools are now allowing banks to venture beyond such legacy systems. They primarily operate based on machine learning algorithms that can learn from past behaviour and issue alerts using predictive analytics. They sift through past data to look for patterns and determine legitimate and suspicious transactions. Such analytical models require large data sets to work with that financial companies can provide easily. ML algorithms help reduce the number of false results significantly, thereby saving ample time for compliance teams to investigate legitimate alerts. The manual work in such cases can be reduced by at least 50%.

The Fintech industry is still working on developing more advanced systems. They are using deep learning which is a step further from machine learning. It can be used for image processing and to imitate human speech. In short, it is able to mimic human cognition and implement intelligence towards the investigation of financial crimes like humans do. Efforts are being made to refine such processes and bring them into the mainstream.

Anti Money Laundering Checks

Another simple yet highly effective tool for improving AML compliance is AML screening. Anti Money Laundering checks also use AI to perform background checks of individuals by screening them through global sanction lists and databases. AML & CTF checks enable banks to screen out money launderers, financial criminals and Politically Exposed Persons (PEPs). Financial institutions can choose whether or not to take on a flagged person as a client or to at least classify them as a higher risk client and thus charge higher premiums accordingly.

Shufti Pro is an anti-fraud solution that uses AI and Human Intelligence to provide KYC and AML verification services to businesses. It can effectively help prevent your business from financial crime laundering through anti money laundering checks. Shufti Pro is providing ongoing PEP screening for clients wherein banking institutions can execute ongoing screening for a specific list of clients or even their entire clientele. They can also implement batch screening which allows them to screen existing customers through AML sanction lists.

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