What is Anti-Money Laundering Software
AML software is designed to help financial institutions (FIs) and other regulated organizations remain compliant with regulations and monitor, detect and report money laundering, terrorist financing, and other financial crimes. AML software is used by banks, financial institutions, fintechs, money service businesses, insurance companies, and other regulated organizations that are responsible for mitigating the risk posed by financial crimes.
AML software works by using a variety of techniques, such as data analytics, artificial intelligence, and machine learning algorithms, AML software analyzes large volumes of data to identify potentially suspicious parties, activities or AML software dramatically improves efficiency of these processes whilst significantly reducing costs of running compliance programs. Technology advancements and automation had sped up and improved the accuracy of monitoring, detection and investigation of suspicious activity, reducing often repetitive, inefficient, error prone and labor-intensive processes which have existed for several years.
AML software helps financial institutions and organizations comply with legal and regulatory requirements, mitigate financial risks, and protect their reputation by detecting and preventing money laundering.
NICE Actimize offers a suite of anti-money laundering (AML) software solutions designed to help financial institutions and others in the regulated sector to detect, investigate and report suspected financial crimes.
Solutions provided by NICE Actimize AML software:
- Risk-based customer due diligence (CDD) A comprehensive understanding of customers is essential to achieve accurate customer risk assessments and precise ongoing monitoring of changes in their risk. It’s key to having an effective CDD program. CDD-X is an end-to-end solution that helps financial institutions understand every customer, and their risks, throughout the customer lifecycle.
- Transaction monitoring A multidimensional approach to transaction monitoring will help financial institutions detect true suspicion while minimizing false positives. With Suspicious Activity Monitoring (SAM), financial institutions can accelerate transaction monitoring effectiveness with an entity-centric approach that detects more suspicious activity with speed and precision.
- Alert & Case management Managing a flood of alerts can overwhelm already-stressed compliance teams, especially when a significant proportion of alerts are false positives, unnecessarily adding to the overall cost of maintaining compliance. Effective alert management using AI has been proven to reduce false positive alerts while highlighting and escalating true positive alerts. NICE Actimize’s ActOne investigation management solution provides a unified platform to manage alerts and cases across a wide ecosystem of financial crime solutions, adopting an entity centric approach.
- Watchlist screening AI-powered watchlist screening offers superior risk management. NICE Actimize’s WL-X Features real-time, on demand and batch screening for parties and payments that leverage AI and an advanced fuzzy matching and natural language processing engine to match and screen for parties on watchlists, including sanctions, PEPs and adverse media, expediting customer onboarding and ongoing monitoring while reducing friction.
- Suspicious activity reporting The NICE Actimize Suspicious Transaction Activity Reporting (STAR) solution provides a streamlined approach to automatically filing suspicious activity reports with jurisdictional financial intelligence units. Using automation and AI, STAR auto populates the mandatory and optional fields and with Generative AI creates a concise but detailed SAR narrative. Reduce time, errors and inconsistencies in the SAR filing process with STAR.
- Regulatory compliance management ActOne enterprise risk case management provides a holistic view of risk by unifying financial crime, risk and compliance oversight and reporting into a single solution. Providing holistic, enterprise view of risk and centralized reporting functionality.
- Data analytics and reporting
Common questions and answers
Q: What is money laundering, and why is it a problem?
A: Money laundering is the process criminals use to disguise the proceeds of their illegal activities as legitimate funds. Criminals often use money laundering to conceal the origin and ownership of their ill-gotten gains, making it difficult for law enforcement agencies to trace and recover the funds. Money laundering is a major problem for organizations, as it can cause financial losses and expose them to legal and reputational risks.
Q:How does NICE Actimize help financial institutions and other organizations prevent money laundering?
A: Anti money laundering compliance is costly and a high-risk area for any business. It requires comprehensive policies and procedures and a complete understanding and oversight of risk and coverage gaps by management. NICE Actimize provides a suite of software solutions designed to help organizations remain compliant, understand and manage their risk, both at a customer and a transaction level. Accurately monitoring, detecting and investigating financial crimes such as money laundering. These solutions use advanced data analytics and machine learning algorithms to identify suspicious behaviour and transactions faster and easier, enabling financial services businesses and organizations to monitor and mitigate the risk financial crime poses to their organizations.
