Anti-Money Laundering (AML) Software

What is Anti-Money Laundering Software?

Anti-Money Laundering (AML) Software identifies suspect customers and suspicious financial transactions to prevent money laundering and other financial crimes. It provides companies with the tools to meet legal and regulatory requirements regarding money laundering oversight, the most notable of which is the Bank Secrecy Act (BSA). It supplies Know-Your-Customer (KYC) / Know-Your-Business (KYB) capabilities, monitors financial transactions (Know-Your-Transactions - KYT), offers Currency Transaction Reporting (CTR), and assists in AML compliance management.

Money laundering is an attempt by criminal organizations and individuals to disguise their ill-gotten gains from financial crimes and illegal activities, including human and drug trafficking, corruption, and tax evasion. The software helps prevent these funds from being used to further the illegal activities of crime and terrorist organizations.

AML databases are used to support watch list scanning for sanctioned countries, organizations, and individuals. The software is used by financial professionals, and risk, fraud, and compliance managers in the banking, FinTech, payment, investment, wealth management, real estate, crypto trading, and gaming industries. The software is closely related to Identity Verification Software, as a key component of AML is identity verification. The software is also related to Fraud Detection Software and Governance, Risk & Compliance Platforms.

Anti-Money Laundering Software Features

Anti-Money Laundering Software includes many of the following features.

• KYT (Know-Your-Transaction)
• Real-time transaction monitoring
• Transaction alerts, dashboards, and suspicious activity reporting
• KYC (Know-Your-Customer)
• ID verification tools
• KYB (Know-Your-Business)
• AML databases or API access for country and organizational sanctions and watch lists such as OFAC, EU sanctions list, UN terrorism list, and global law enforcement lists.
• PEP (Politically Exposed Persons) – Individual sanctions lists
• Real-time sanction, watch list, PEP, and adverse media scanning
• KYT and KYC workflows
• Investigation and case management tools
• Custom flagging rules and risk classifications
• Risk assessment and scoring tools
• Suspicious customer behavior, transaction analytics, and AI
• Trend analytics
• AML compliance management and reporting
• AML regulatory requirements and information
• On-premises and cloud-based offerings

Anti-Money Laundering Software Comparison

Consider the following when purchasing Anti-Money Laundering Software solutions.

Use Case: Some AML products support a broad range of financial applications, while others focus on specific businesses such as correspondent banking, crypto trading, or specific geographical regions such as the EU.

Scope: Stand-alone AML products usually offer the most comprehensive and robust features, however depending on your needs, many large fraud prevention, claims management, financial compliance, and GRC platforms offer AML modules within their products.

Scale: AML software supports everything from large complex financial institutions to small FinTech startups. Flexible solutions are available with features and costs that readily align with your needs.

Advisory Services: Some vendors offer AML consulting, legal services, and expertise along with their products.

Pricing Information

Pricing can be driven by the number of transactions or API calls, validation rules and AML databases supported, features provided and level of customer support. Limited plans begin at under $100 a month and more comprehensive solutions can easily exceed 1,000 a month. Most vendors require a quote for their AML software products and services. Free trials are available