10 Best AML Software & Tools to Learn in 2022

If you are a working professional employed in the AML-KYC department looking for the best AML software & tools to learn in 2022 as applicable to your specialization or are someone looking to enter this enticing career path and are looking to pick up a new skill for enhancing your CV, then this section is for you. Keeping in mind the vast range of readers, we shall begin by looking at some basics.

What is AML software used for?

Anti-Money Laundering software enables banking, financial institutions, and other such organizations that are required to adhere to the regulations, to deploy their AML programs, and their practical applications range from transaction data management to predictive analysis to the application of advanced technologies such as artificial intelligence and machine learning. Before we take a look at the best AML tools and list the top 10 AML software, we shall discuss briefly the types of software used in this field.

Types of Anti-Money Laundering (AML) Software

AML software is basically of four main types based on the features and applicability:

Customer Onboarding

Customer Identity management software is a system used to assess various sensitive lists, as a part of the Know Your Customer (KYC) regulatory requirements. Electronic verification systems enable checking a customer’s demographic profile and contact information, using various databases that provide confirmation of the details and ID. AML software can identify accurately the individuals blocked based on the past activities that have arisen suspicion and flag them to the relevant authority. Majority of vendors of customer onboarding software offer solutions that include: politically exposed person (PEP) check, sanction checklist, fraud detection, and auditing and reporting, among others.

Transaction Monitoring

Transaction monitoring software and solutions play an effective role in strengthening AML programs, by specifically tracking and identifying suspicious or irregular patterns in financial transactions of customers by leveraging historical data and details of certain client profiles. It files Suspicious Activity Reports (SARs) or Suspicious Transaction Reports (STRs).

Currency Transaction Reporting

Organizations can effectively implement AML and KYC regulations only if they have an understanding of what can be categorized as ‘reasonable activity of the customer so that they can identify any anomalies in the patterns to generate alerts. AML software can also be used to detect financial transactions that involve large amounts of money or multiple small transactions that arise suspicion in summing up to a massive amount of money. The list of transactions monitored includes deposits, withdrawals, exchange of currency, etc.

Based on the AML regulations in India, the alerts or triggers will be generated based on the rules or thresholds set by the respective banks or financial institutions in their core banking software, wherein the customer data is maintained. Most of these organizations have thresholds monitored for each transaction, based on which a score is generated for associated risk to the transaction.

Compliance

AML software is mostly used to implement the compliance requirements of the organization. The AML software is equipped with data management features that are used to maintain exhaustive records. It can also be used to keep track of reports submitted to the financial authorities of the country, such as customer transaction reports.

Anti-money laundering software is used to record and regulate financial transactions by utilizing crucial insights from data that is derived from multiple sources. AML software can also help organizations avert business transactions with individuals or enterprises involved in financial fraud, terrorist financing, or other forms of manipulation, by flagging them as suspicious accounts. Key companies that offer AML software solutions in the market are engaged in developing robust systems that can offer real-time insights by leveraging artificial intelligence for potential threat detection, and fraud and risk management.

Top AML Tools, Software, and Vendors in India

The key companies offering AML software solutions in India include Infrasoft Technologies Ltd., 3i Infotech, and Surya Software Systems Private Limited, among others apart from global vendors such as Oracle Corporation, NICE Actimize, and SAS Institute Inc, etc. There are a lot of AML tools being used in India, some of which are:

1. Amlock: It is an AI-powered Anti-Money Laundering and Fraud Detection solution by 3i Infotech, that streamlines Customer Due Diligence (CDD) and facilitates Transaction Monitoring and Investigation.
2. World-Check Risk Intelligence: This database solution by Refinitiv delivers accurate and reliable information to help organizations make informed decisions to meet KYC and Due Diligence Screening obligations.
3. LexisNexis Risk Solutions:  It is a leader in providing essential information enabling clients across industry and government to assess, predict, and manage risk.
4. Oracle Financial Solutions for AML: The Oracle FCCM (Financial Crime and Compliance Management) Cloud Service, is an end-to-end AML uniquely designed for mid-sized financial institutions to help them stay safe, compliant, and ready for business growth.
5. NameScan: provides specialized PEP checks and Sanction screening solutions.
6. Actimize AML: The NICE Actimize AML platform modernizes KYC-AML programs by infusing AI, machine learning, domain expertise and robotic process automation (RPA) to optimize efficacy, accuracy, and at the same time provide full regulatory compliance coverage and auditability.

In the following tables, we shall list the top 10 AML software based on the different types, along with some of their key specifications.

Top 10 AML Software for Identity Verification and Customer Onboarding

Top 10 AML Software for Transaction Monitoring

Top 10 AML Software for Risk Assessment

Additional AML Risk Management Software

AML Software with Integrated Risk Management

To summarize this blog, we began with looking at the usefulness and application areas of AML software, followed by a brief discussion on its four types. We have then looked at the top AML tools, software, and leading vendors in India, listing some of the features of the top 10 in each category of software.

Become a Vskills Certified AML-KYC Compliance Officer before continuing or joining the action of combating illegal financial operations and movement of funds through the use of banking channels.