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Fraud Prevention tools for Banking Industry that are Perfect for Anti Money Laundering


Financial Departments and banks are the backbone of the economic system of any country. They play a vital role in the flowing of cash throughout the country. So they must be very responsible for their work to support the country in any aspect. Banks can generate revenue in case of emergency for the country. Banks are the institutes through which most of the cash flow in the country. They must use error-free cash flowing process from their branches to stop flowing of black money and to participate in the fight against money laundering. As part of the effort to combat money laundering, Banks and financial institutions must install AML software throughout their channel. AML software assist banks and financial institutions to find out money laundering activities in their institutions in accordance with legal requirements by detecting fraud activities financial institutions can generate higher revenue.

What rules to be followed for AML Compliance:

Due to a variety of AML software, every bank is concerned that which is the Best AML software for banks and which to choose which do not. While choosing the software just remember that software you are choosing is not conflicting with standards of FINRA RULE 3310. 3310 is anti-money laundering compliance program by FINRA. FINRA offers AML template for small firms to build the Anti-money Laundering Compliance program to impose its regulations through FINRA rule 3310. It provides many resources to establish AML Compliance program i.e. rules, website resources, examples and text examples with many other resources. FINRA is also offering e-courses by the help of these courses any industry can help themselves to detect and prevent money laundering activities.

What AML Software can do:

Higher revenues can be generated through KYC and AML. BEST AML Software For Banks can process huge amount of data to find out the suspicious or illegal activity that is very tough for human AML officers to manage. While choosing Best AML Compliance program banks must keep in mind that it should include the following obligations:

1- Its algorithms and techniques are understandable for personnel.

2- It must have completed the phase of testing to provide error-free service.

3- It should generate alerts for any suspicious activity.

4- It must filter information for AML officers to keep an eye.

5- Spot transactions of large amounts and generate reports.

6- Should be able to find out the deal prohibited business.

7- Software must be able to use for keeping detailed records of the employee.

Anti Money Laundering Tools:

It depends on the need and requirements of the financial institutions or banks that which tools they are using in combat against AML. Various softwares are used for Anti Money Laundering:

1- Transaction Monitoring Software

2- Compliance Management Software

3- Currency Transaction Reporting

4- Customer Identity Management Software

These tools are used to check transactions of customers on a daily basis and check if it consists of any suspicious activity. It also helps to check customer’s previous history to check if he was involved in any illegal activity so the bank can discontinue providing the particular customer with their services. It includes various modules some of them are enlisted for better understanding:

1- Document management:  it provides a very useable service to manage personal documents of the customer and all details of his account i.e Account opening and identification document.

2- Through customer Identity Management Systems businesses can check through sanctions list, PEP’s, with a single scan and batch matching.

3- As the whole world is rapidly shifting on AI. Through machine learning, financial institutions can more deeply detect money laundering activities through their channels instead of checking every single scenario.

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