The sophistication and number of ways humans can transact money has evolved exponentially in today’s digital landscape, and financial criminals continue to find ways to hide the origin of funds. The increased volume of cases can overwhelm case management teams if productivity does not keep pace with detection improvements. Hiring more investigators to handle the load is unsustainable, making it crucial to invest in anti-money laundering (AML) tools that support both enhanced detection and greater efficiency in case investigation.
The surge in digital transactions (growing by 22% in 2022 to $2.2 trillion USD), increasingly for small amounts or for new transaction types, underscores the need for high-performance advanced analytical capabilities. Risk leaders must ensure a balanced focus on both detection accuracy and case management productivity to avoid bottlenecks and burnout within investigation teams.
A holistic approach to reduce TCO
When evaluating AML systems, consider the total cost of ownership, which includes license, usage, and maintenance costs. Choosing cloud-based AML solutions with pre-built libraries of AML typologies and a sandbox environment can significantly reduce the total cost of ownership (TCO) while enhancing compliance operations. Cloud-based systems offer scalability and flexibility, allowing organisations to pay only for the resources they use, avoiding the high costs of on-premises infrastructure.
Pre-built AML typology libraries in modern AML solutions provide ready-to-use templates for identifying suspicious patterns, reducing the time and effort needed to configure the system for specific risks. Sandbox environments will empower compliance professionals to test scenarios and fine-tune models independently, without relying on external IT support, which leads to quicker iterations and adaptations to evolving threats. This autonomy not only reduces operational costs but also accelerates response times and fosters innovation within the compliance team, maximizing overall productivity.
Automation and workflows
Effective automation and streamlined workflows are essential to improving AML compliance efficiency.
Triage and prioritisation: Choosing advanced AML systems which automatically triage cases, presenting the most urgent and high-risk cases first, followed by medium- and low-risk ones help follow a risk-based approach. Additionally, the system can prioritise the most relevant data sources for each investigation based on the nature of the entity and its geographical location, reducing the guesswork for investigators.
AI-assisted workflows: New investigators may lack experience, while seasoned professionals can develop inefficient habits over time. AI-assisted workflows guide investigators through the process in a consistent, orderly manner, helping ensure that tasks are executed systematically and reducing human error.
Pre-population of reports: Many investigators still manually fill in Suspicious Activity Reports (SARs), which can be both time-consuming and prone to error. An effective AML system should support pre-population of report fields and text, saving valuable time and providing an audit trail to show how conclusions were reached.
Artificial intelligence
Artificial intelligence (AI) and Machine learning (ML) are transforming the effectiveness and efficiency of AML solutions. AI in AML help improve detection rates, accuracy, and efficiency by automating processes and guiding investigators through tasks
Begin by focusing on simpler AI use cases, such as automating regulatory report pre-population. This offers a quick win by saving time and improving accuracy. Over time, AI can be applied to more advanced areas, like predicting emerging financial crime trends, helping investigators stay ahead of evolving threats.
When using AI to assist in risk scoring or other aspects of AML, ensure that the algorithms are auditable and explainable to regulators. Transparent AI use builds trust and ensures compliance, allowing auditors to understand how decisions are made.
The fastest way to boost productivity in compliance, with Napier AI’s plug-and-play AML service offering:
