Anti-money laundering software detects and reports money laundering practices, with effective case studies showing its effectiveness. The best software recognizes a variety of risk factors, generates alerts, and maintains an updated watch list of offenders.
Anti-money laundering software (AML software) is software that can detect money laundering practices and immediately generate a report that a person must review to verify whether the practices are legal or illegal. For legal and financial institutions, having an anti-money laundering software package is essential to ensure that there are no customers committing money laundering crimes. The best anti-money laundering software will have case studies showing the software’s effectiveness, be based on a variety of risk factors, notify employees immediately when there is a risk, and maintain a constantly updated watch list of companies and people.
Some software is effective on its own, but this is not the case with anti-money laundering software. A case study will show a case, or cases, where AML software was deployed to a financial institution such as a bank and show whether the software was effective in assessing risk. Without an effective case study, it can be difficult to determine if the software can recognize money laundering activity before it harms the business.
Most anti-money laundering software is programmed to check purchases of $10,000 US Dollars (USD) or more because purchases of this size must be reported. Advanced money launderers understand this practice and create ways around this reporting. The best AML software will be able to recognize a variety of risk factors, suspicious charges and filing trends to find money launderers. Software that can recognize only a few risk factors will increase the chances of a business being affected by money laundering.
If there are only a few customers to worry about, it can be easy for employees to screen each person when risk factors reach a dangerous level. This is rarely the case, and most businesses needing anti-money laundering software have thousands of customers or more. Having AML software that generates a report and immediately alerts employees when a customer becomes a risk is better than a program that detects risk but offers no alerts until requested by a company employee.
Repeat money laundering offenders are typically put on a watch list so other institutions know who to watch out for. Keeping this list handy will make it easier to stop these offenders and help a business know who to watch. Anti-money laundering software that automatically updates the list is probably the best choice.
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