AML software system

Posted: Thu Sep 27, 2007 05:36 am Post Subject:

With the increase in the terrorist activities money laundering has become a global issue. All the central banks are now required to keep a vigil on the types of transactions taking place. Therefore, are required to install AML software or Anti Money Laundering Software for monitoring the money inflow and outflow. As far my knowledge goes, there are three types of AML softwares available for use.

One is the Currency Transaction Reporting System. Normally deals with large cash transactions. All the financial institutes, who ever are involved in currency dealings, are required to file reports of all the transactions (withdrawals, deposits, fund transfers etc.) of volume $10,000 and more.

Juanita

Posted: Thu Sep 27, 2007 06:18 am Post Subject:

Hi sudarshan, Welcome to the forums. Buddy, you have raised a very important issue. Thanx :D

Coming to your queries, well, I personally don't have any experiences with AML softwares but strongly feel that both the need and scope of using these technologies exist. I'll second Juanita that the current political tug-of-wars have instigated the need of installing the financial transaction checking systems. All the available AML softwares work some what differently from one another. But they normally offer the following supports:

• 
  1. Monitoring transactions
  2. Customer identification
  3. Conforming reports
  4. Red-flagging suspicious transactions and ringing bells whenever required
  

Posted: Thu Sep 27, 2007 07:37 am Post Subject: The other two form of AML softwares

Good morning sudarshan,

Juanita, you have rightly mentioned that there are three types of AML softwares available but have mentioned only one. Therefore, I am taking the opportunity to discuss about the other two forms- Know your Customer (KYC) and Transaction Monitoring System.

Implementation of KYC may help in more than one way. It not only prevents identity theft but also helps in identifying fraudulent transactions.

Transaction Monitoring system helps in pin-pointing any erratic or suspicious transaction. Actually, it is now compulsory for all financial entities to do Transaction Monitoring (TM) and alert the concerned authority about spurious transactions. InsAmi

Posted: Sat Sep 29, 2007 10:04 am Post Subject: Practical Issues - AML implementations

Thank you every one.

The info provided by all of you is very useful. I would like to highlight some practical issues that come in way in implementing an AML system.

Let me take only one issue this time.

Issue no.1-- Should the AML activitity like monitoring the tranactions, be confined only to the AML cell located at the head office or should be carried out by the branch manager also. There is always a debate on this when a Insurance co or a Bank looks to buy a AML system. In developing countries many insurance or Banks dont have a central AML cell. The AML activites are therefore carried our by the Inspection or audit department. AML being a unknown and additional burden on these depts, they try to push it to all the branch. But branches are busniess unit, they are meant only for generating business/revenue. If you tell the branch manager to do all the AML activity we would put it down. In my view we should restrict AML activity/operations at the branch level only to the exent of NAME MATCH CHECKING at the policy opening stage and not beyond that. Day to day tran monitoring should be done by an AML cell headed by a chief compliance officer.

What is your thought on this case.

Posted: Sat Sep 29, 2007 10:56 am Post Subject:

Hi sudarshan, welcome back to ampminsure forums. You are quite right in saying that it always helps to have a centralized monitoring system for keeping track of the suspicious transactions. But IMO the problem lies elsewhere. The bank and the insurance companies need to produce a breed of official who are savvy in using these AML softwares. This can only solve the problem of money laundering. Be it at the branch level or at the central level, only proficient officials can solve the problem of monitoring fraudulent transactions.

Another option can be the sharing of responsibility between the branch and the audit department. Consumer awareness can also help in reining the problem of money laundering.

Hope to listen more from you.

Regards,
ArindamSenIndies

Posted: Mon Jul 19, 2010 10:00 am Post Subject: Softwares used for AML activities

Hi, I was intrested in knowing the various softwares helpful for AML activities in various Financial Institutions