Automated AML: The New Regtech Solutions

Banking CIO Outlook | Friday, July 10, 2020

Financial lawbreakers have risen in the past few years. With millions of transactions taking place every minute, the financial institutions, today need to employ regulatory technologies across their organization to promote a safe environment.

FREMONT, CA: Across the globe, financial activities have sprung up like never before. Today one financial institution settles thousands of loans, deposits, investments, and every other financial transaction, every hour. Along with these comes a handful of financial crimes. This has driven the institutions to seek solutions, like Regtech (Regulatory Technologies), that merge regulations with new technologies and keep pace with the growing regulations and compliances.

One of the most sensitive responsibilities of financial firms is protection against money laundering. Dealing with the regulations of anti-money laundering (AML) can be a hassle if there aren't any technological interventions.  Let’s take a look at some AML solutions that help companies to keep up with the compliance processes.

Top 10 RegTech Solution Companies - 2020AML screening software

The underlying components of AML regulations are the same for almost every institution in every country. The AML regulations aim to monitor the customers through processes like "Know your Customer", which help to estimate the risk factor associated with the customers.

Sanction Scanner's AML Screening Software makes it very simple to automatically screen the different adverse media data, lists of the politically exposed person (PEP), and sanction lists. Mostly these software use batch screening functionalities to process the data stored on their databases.

AML Transaction Monitoring Software

The financial institutions process several transactions every day, making it unfeasible to manually supervise and check all of them. But none can compromise with the safety of the monetary transactions. The AML transaction monitoring software eases the manual job of professionals by providing rule generation options, and real-time alarm system, as in the case of Sanction Scanner's software. Companies can create their set of rules for assessing risk and can feed the rules into the software. The software activates an alarm when rules are met, and the AML compliance officer then processes the alarm-marked transactions. Thus, the filtering of complying transactions and their processing are made easy by the monitoring tools.

Transaction screening software

As the number of customers engaging in financial activities has increased, it has become wearisome for the institutions to filter the banned customers. Under any circumstances, a company would not want to delve into transactions involving terrorists or banned customers, violating their regulations. Nowadays, companies are employing transaction screening tools that examine the sender and receiver information, wanted lists, PEP lists, and related data. The transactions are processed only after the software performs a thorough screening.

Today, many startups have come up to help fight financial delinquencies. These startups deploy Regtech to maintain the compliance status of their business and, in the long run, establish a secure environment for the service providers as well as the customers.

See Also: Top Banking Technology Solution Companies

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