Online payment scams and money laundering attempts are the indicators of a company’s poor performance and low productivity. These scams disrupted the financial profiles of approximately 1,263 customers in 2019. Through money laundering attempts, the imposters introduce their illicitly obtained funds into the legitimate financial system, which exploits the financial framework.
To rectify such instances, businesses must ensure the utilization of anti-money laundering (AML) screening procedures, which stimulate the identification of high-profile entities in real-time. AML screening automates the examination of customers’ identity profiles against several lists, leaving no space for imposter’s illicit transactional activities.
Purpose of AML Screening Solutions
Anti-money laundering procedure, also referred to as AML screening, is the practice of assessing the customer’s risk profiles through automated identity evaluation procedures. These screening initiatives investigate the involvement of customers in money laundering and related scams. Moreover, AML screening entails effective transaction monitoring and risk assessment procedures.
AML screening protects businesses from becoming a hotspot for money laundering and related cybercrimes. Additionally, the ultimate purpose of these screening operations is the evaluation of customer’s risk profiles in order to mitigate the risks associated with malicious financial activities. AML screening ensures the business’s protection from sanction violations as all the customer’s identities are examined against various sanction lists. Furthermore, anti-money laundering screening operations not only ensure protection against sanction violations but also protect businesses against KYC regulatory fines as well.
Stimulate Transaction Monitoring With AML Screening Software
AML screening plays a critical role in the regulation of customer’s transactional activities. These operations ensure customer’s identity protection against malicious financial activities. Anti-money laundering screening operations are used to examine the customer’s financial transaction activities, which stimulate the accuracy of fraud detection measures. These operations are beneficial for the stimulation of banking operations.
The banking sector can effectively monitor the source of funds that are coming in and out of legitimate bank accounts. This boosts the examiner’s ability to evaluate whether the funds are legitimate in nature or not. Moreover, AML screening operations enhance the business’s operational efficiency as all the identity examination procedures are conducted through automated channels.
AML Screening Requirements for Due Diligence Procedures
A critical component of anti money laundering screening appears in the form of various due diligence measures. These measures emphasize the evaluation of customers with low-risk and high-risk customers. Some of the most crucial due diligence AML screening measures are discussed below:
| Customer Due Diligence | Enhanced Due Diligence |
| Customer due diligence deals with the assessment of customers to identify their risk levels. These checks prompt the examiners to evaluate the customer’s identity details against information stored in official databases. | Alternatively, enhanced due diligence deals with the in-depth analysis of high-profile customers. This involves the evaluation of the customer’s financial history and identity details against several international and domestic checklists. |
AML Screening for PEP
The evaluation of customers’ identities against politically exposed persons (PEP) lists plays a critical role in the authentication of the AML screening operations. These lists are examined to evaluate the financial status of high-profile customers who are involved in an economy’s politics and public relations. Furthermore, AML screening requires a thorough analysis of these entities because they are most likely to be involved in money laundering and transnational crimes.
PEP screening operations are categorized into various categories, such as:
- These lists store the financial details of those entities with prominent services in foreign operations. These entities consist of higher authorities, including politicians and prominent government officials.
- PEP lists also store the identity and financial details of customers who manage domestic public operations.
- Finally, the politically exposed persons (PEP) list contains the details of customers with prominent positions in international affairs. Therefore, the AML screening operations evaluate the risk profiles of all the customers that belong to different categories in real-time.
Checklist for Streamlined AML Practices
The effectiveness of AML screening is stimulated with the utilization of automated risk-assessment measures. These measures screen the customers against several hundred watchlists and provide quick and accurate results instantly. The customer’s risk profiles must be monitored regularly to keep track of their transactional activities.
Moreover, AML screening solutions must ensure the continuous examination of customer’s risk profiles against PEP, sanction, and criminal watchlists. The regular examination of these lists ensures the protection of business activities against money laundering, account takeovers, and sanction violation operations.
Final Thoughts
AML screening solutions play a critical role in the determination of imposter’s money laundering and account takeover attempts. These screening measures emphasize the examination of customer’s identity profiles against several critical lists. These lists store the details of customers’ risk profiles and financial activities, which allows the examiners to authenticate the customers’ identities. Moreover, businesses must incorporate the use of AML screening operations during the onboarding procedures. These measures limit the access of high-profile customers to legitimate business services, which stimulate the productivity and functionality of legitimate business operations and activities.
