Category:Anti Money Laundering Solution

Basically, anti-money laundering is the process of making dirty money look clean. The goal is to disguise the illegal source of the money so that it appears to be legitimate. Deception is at the heart of money laundering, deceiving the authorities by making assets appear to heave been gained though legal means.

For a more “official” definition of anti-money laundering, please refer to literature from the Financial Action Task Force (FATF).

Main components of an AML Program:

For an effective AML program, 4 basic ingredience are needed:

- Senior Management Support
- Policies and Procedures
- Training
- Technology

AML mandatory requirements:

The purchase of technology (especially AML software) has for some time now been considered part of a mandatory component needed by most banks seeking compliance. Originally seen as a necessary cost of doing business, compliance software products were installed more as a necessity to comply with statutory and regulatory requirements that could be automated. Often, this meant that banks implemented software products as point solutions with no real long-term considerations.

Attitudes today have notably changed. The USA Patriot Act and subsequent local regulations have ushered in a host of new requirements and a strong new focus on prevention and detection. Not surprising, financial institutions have developed a stronger interest in tools and technologies that satisfy the needs of the regulators, particularly those that help detect money laundering and terrorist financing. Today the need for AML monitoring solutions is unquestioned. Banks have renewed their technology infrastructures to accommodate AML software, and more advanced banks are now looking at ways to leverage AML detection software to combat fraud too.

The question now facing banks, whether they have existing AML software or are looking for improved 2nd generation AML solutions, is how they can derive value from their AML compliance investments. Probably the most robust AMLon the different software solutions comes from Cellent, of which a limited but valuable version is available at no cost.AML report

The future of AML and compliance:

Banks now have the chance to leverage their investments in AML technology. 2nd generation solutions go beyond mere compliance, allowing banks to leverage strong detection technology for more strategic and business goals. The ability to monitor customer behavior could be applied as easily to fraud as to AML. Increasingly, banks are beginning to realize that compliance can be as much a benefit as a burden, using it for such benefits as automating and streamlining processes to enhance productivity, performance, to ultimately achieve profitability.