AML and Technologies, a Sheer Blend to Confront Money Laundering and Forgery

Banking CIO Outlook | Friday, June 28, 2019

With the help of advanced technologies, financial institutions can fight hard against money laundering to ensure transaction precision seamlessly.     

FREMONT, CA: Money laundering is a significant challenge faced by financial service industries like banks. The regulatory authorities have passed Anti-Money Laundering (AML) regulations to prevent and detect such activities. Along with proper tools and latest technologies implementations, banks are now capable of monitoring any suspicious activities or transactions. Banks broadly take three steps to identify money laundering or forgery, which are profiling, transaction monitoring and database verification. The overall level of screening process effectively highlights the anomalies and reduces the possibilities of money laundering. However, the various levels of manual audits and judgments minimize the consistency of the work process affecting the efficiency of AML. With the help of advanced technologies, the AML process has seen fewer complications and a vast improvement to control the challenges.

Big data analytics, massive storage capacities and advanced computing abilities have offered a real-time screening for even a large amount of money transactions, which is not only cost-effective but also quick and simple to detect suspicion. The advanced graphical representations of analytical data improve the identifications and enable the deeper querying capabilities for interlinkages between accounts. Involvement of artificial intelligence and advanced neural networks pushes the boundaries of AML to accurately judge the probability of the transaction being genuine or fraudulent regardless of geographical, demographic or transactional clusters. High-tech tools are available to analyze the social media and web feed where the criminals tend to hide by creating a various facade of layers. These insights of behavioral profile contribute to predictions for AML regulations. Blockchain ability to tamper-proof the data provides an excellent protective layer for the bank’s essential details and spot the duplications and forgery.

Pinning down the issue of money laundering can effectively reduce other crimes. Taking the right decisions and working towards the necessary process can help the world to be a better place to live. Many people, organizations and industries have moved forward to adopt advanced technology for safer and fast transactions.

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