Anti-money laundering is very difficult, complexed, and specific to cope with. There are many types of criminals with different motivations, who are extremely sophisticated and well resourced. As we don’t want to upset the good and innocent customers, there is a need to establish a system that is loose enough to enable a smooth workflow process but tight enough to prevent fraud. It is important to know how to effectively use risk assessments. They involve the identification of key indicators where the institution needs to perform deep analysis to address any potential risks the organization can be exposed to and the sufficiency of controls in place to manage such risk. The ability to obtain all information on the customer may be a challenge due to privacy issues or reluctance of the correspondent to divulge entirely Know Your Customer information. Periodic KYC reviews should be conducted on a cyclic basis to ensure that existing customer information is kept updated.
There are many red flags, that might be impossible to notice without an appropriate analytical and predictable modeling approach. The main challenge is to be proactive by monitoring all customer activities across the wire, online, mobile, ATM, teller, and phone channels. Creating a holistic view of all transactions, analyzing the relationship of this data, and correlating with employee activities in real-time can be the best strategy for preventing fraudulent schemes. On top of that, AML rules and regulatory expectations are constantly evolving, and financial institutions have to make sure their compliance programs keep up with each new change. Financial institutions should review their AML programs, assess their effectiveness, and enhance them accordingly. The CDD rule represents a key development in the continued evolution of AML compliance, and regulators today may place even greater focus on the nature of customer relationships and transactional activity. Conduction of thorough risk assessment and accurate risk quantification is, therefore, a must. Financial institutions should evaluate whether their current systems can handle the additional information and field requirements, which some legacy systems may not be able to do.
RAALS system analyses customer data and detects suspicious actions. Cutting-edge technology fights financial crime, reduces the cost of compliance, and increases the profitability of sector lending businesses. AML solutions are being considered as the key IT solutions in enterprises. RAALS can help you identify potential incidents and prevent you from affecting the organizational workflow in the meantime. It analyses and compares data from various data sources like an official (EU, UN, OPAC, HM Treasury, ...) and internal lists, then finds trends and patterns. When there are deviations from normal behavior, it raises an alarm. The software prevents, detects, and manages inconsistencies and illegal practices, all in one single platform. Flexibility is enabling users to make and adjust the relevant indicators by themselves, according to current needs and market trends, to achieve maximum accuracy. RAALS is therefore both extremely powerful and user-friendly, which can’t be taken for granted when talking about advanced software solutions.