In order to demonstrate compliance with applicable anti-money laundering (AML) laws and regulations, it is important that financial institutions demonstrate their capability to actively monitor transactions for suspicious financial activity. With some exceptions, namely very small community banks with low transaction volumes, it is almost impossible to manually wade through many thousands (and sometimes millions) of transactions and compare current activity to previous periods, correlate them by customer and account types, and look for patterns of activity that are unusual and may point to potential money laundering.

Regulatory guidelines require due diligence in choice of software.  A key success factor for financial institutions concerned with AML issues is an in-depth understanding of the AML transaction monitoring product’s functionality, technology, architecture, and ability to interface effectively with other systems.  The following article outlines many of these expectations and tips on how to comply.

Click the PDF below for the full briefing.