Compliance is an integral but time-consuming part of activities for financial institutions. Fast-changing regulations combined with growing volumes of transactions require vigilant checks so that no single transaction slips through the net of criminal activity.
Manual compliance processes could be more efficient and avoid non-compliance. RegTech AML solutions automate and streamline traditionally labor-intensive AML workflows.
“RegTech tools allow us to focus our compliance efforts so much more strategically rather than being tied down in routine tasks,” Jane Doe, Chief Compliance Officer. To solve the issues of scalability and risk, it digitizes AML responsibilities like transaction monitoring, reporting, and client due diligence.
Let’s read about RegTech AML Solutions for Your Business.
Streamline Your AML Compliance Program
Those tools that offer end-to-end program management automate a great many historically manual tasks. For example, automated updating of customer risk profiles is completed on a scheduled basis in AML.
According to statistics, organizations using RegTech for program management oversight reduce the staff hours spent on compliance by 25% on average.
Simplify Customer Due Diligence Checks
Proper customer due diligence is time-consuming but needs to be done because it calls for customer identity verification and transaction monitoring against suspicious activity.
By scanning IDs and combining data from several sources to compile all the information, RegTech in AML compliance automates CDD.
The most modern AI-powered identity resolution by RegTech solutions can match new customers to huge public databases in seconds.
Automate Transaction Monitoring and Alerts
Transaction monitoring forms the core of any AML effort. Millions of transactions occur daily, and looking for unusual patterns can be done in only one way with technology.
RegTech AML solutions deploy algorithms and machine learning that continuously monitor every activity, instantly producing alerts based on risk for investigators.
On average, RegTech solutions can reduce false alerts by 30% compared to manual monitoring. This enables teams to focus only on genuinely suspicious transactions that require thorough review.
Bonus: Rather than being bogged down by tedious manual tasks, your compliance staff may spend more time mitigating a significant number of genuine risks linked with financial crime thanks to the way AML controls function through RegTech.
Ensure Ongoing Customer Risk Assessments
AML checks and regulations demand that risks for existing customers be assessed on a continuing basis. RegTech solutions for AML make this seamless by automating risk assessments.
Driven by AI-based algorithms, they Continuously base dynamic risk levels by scanning transaction histories against external data sources in a seamless manner. Over 75% of the midsize banks replied that RegTech streamlines uploading and reviewing over 500 risk assessments every month.
Facilitate Suspicious Activity Reporting
High-quality SAR filing forms are essential for AML regulation, but manual preparation of these reports takes much time. RegTech in AML oversees the automation of the SAR filing process from end to end.
Machine learning algorithms generate draft reports that are pre-filled based on unusual transactions, cutting down the average reporting time by half. 90% of credit unions can easily upload 10-50 SARs every month to regulators in view of fraud insights drawn through RegTech AML solutions.
Manage Sanctions Screening Updates
Screening against numerous lists of global sanctions is laborious but unavoidable in terms of compliance. RegTech renders such screening frictionless, using automated background checks. New names are systematically checked in databases of over 5 million sanctioned entities in real time.
Eighty percent of large banks’ compliance teams have been empowered with RegTech solutions that enable more than 100,000 daily sanctions matches to be processed with accuracy unprecedented therefore.
Document Compliance with Audit Trails
Proper documentation and detailed audit trails are part of any AML regulation. With RegTech, AML compliance may be much more easily managed because of features like automated tracking feature activity.
The compliance officer can generate instant reports customized to show just how RegTech tools were applied toward meeting regulations.
Almost all big financial institutions now leverage the digital audit logs from RegTech, making exam preparations some 80% faster.
Reduce Regulatory Fines and Reputational Risk
The poor detection of AML regulations can be expensive. RegTech AML solutions drastically reduce these risks in AML compliance through early detection of criminal behavior.
With correct transaction screening, risk-based alerts, and custom monitoring rules created by RegTech, these fines have come down by 50%, according to some recent analyses.
RegTech tools aid in ensuring that policies prevent the entrance of criminal funds into financial systems in the first instance. Over 97 percent of small and midsize banks today are looking toward using RegTech in AML for plugging their defenses on risk management.
Visit amlwatcher.com for more information. Feel free to request a personalized demo and see how, with RegTech tools, monitoring compliance can be much easier.
