[Guest Post] What's Ahead for AML Software

courtesy: africacenter.org

In the last few years, the government has continuously increased business requirements under the Bank Secrecy Act (BSA). These new requirements mean that businesses and banks have to do their best to stop money laundering. To do this, many businesses are resorting to anti-money laundering (AML) software. If they do not comply with the BSA, businesses will face regulatory fines and enforcement actions.

What is AML Software?

Anti-money laundering software is one of the key ways that businesses can protect their reputation and comply with anti-money laundering laws. This software is a way to outsource the task of protecting their business and helps to ensure that the company is not a part of any money laundering scam. Many banks and companies have to monitor thousands of customers and millions of transactions, and without AML software, the task of complying with the law would be cost prohibitive.

courtesy: itp.net

Currently, there are a few different types of AML software, including CTR, Compliance, and Customer Identity Management. Each of these software systems works to scan different transactions and red flag suspicious activities and is in constant development to provide current and to date information to financial businesses.

One form of AML software is available for companies to purchase is called currency transaction reporting (CTR). These CTR systems alert the company to any transaction over $10,000 within the United States, which can prevent terrorist funding and lead to a decrease in money laundering.

Another form of AML software deals with compliance. It ensures that businesses can track the evidence of their financial transactions and eases the reporting process. These systems will alert the company if any transaction is deemed suspicious and the company can report it to the appropriate authorities.

AML software currently also uses customer identity management systems. The software scans the customer’s information against security list and previous dubious activities. Customer identity management systems are a useful way to fulfill Know Your Customer (KYC) requirements. Many nations around the world use KYC systems to check customers against a database of identifications, transactions and criminal activities.

The Future of AML

In the past, companies had to hire AML experts or pay for staff members dedicated to the task. As AML software develops, businesses will be able to use less of their resources on AML activities. In just a few short years, AML software has developed intricate logarithms and calculations that can red flag any suspicious transaction. Instead of compiling reports by hand, businesses can now resort to completely automated reports.

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In the future, anti-money laundering software will be designed so businesses can customize it completely to their needs. In addition, it will be further designed so that the entire organization can use when they need it. At the moment, AML software is only used by certain segments of the company. As it becomes redesigned and reconfigured, the software will be accessible to large portions of each organization.

Right now, the numbers suggest that few companies are taking advantage of AML software and technology. As more companies join the fold, AML software will have the market share necessary to make huge leaps in technology and efficiency. With more investment in this useful financial reporting tool, AML software will be able to reach the next level in efficiency and effectiveness.

It is through these AML software redesigns and new levels in efficiency that the AML industry will see increased technological developments in all of its software systems. This includes customer identity management systems, as well as tracking and currency systems. Developments in these areas will greatly impact the AML industry in a positive way and will result in a wider spectrum for financial institutions and their clients.

About the author:

David Larson, with Intelligent Search, is a computer enthusiast. He enjoys reading and writing about technology. He also enjoys hiking and being in the outdoors with his family.

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