Do AML checks slow your business down? – Is AML software the solution?

31st August 2018 2869 - Blog Posts


Since the introduction of the UK Money Laundering Regulations 2017, which came into force last June, compliance has become more complex than ever for financial firms. The tightening of AML checks has been prompted by the rapid rise of money laundering – the FCA reported that investigations into money laundering leapt 12% last year. The latest regulations require more stringent AML checks and a risk-based approach with more emphasis on the source of funds, which can make AML checks more time-consuming if conducted without AML software.

Why do the new AML rules mean extra work?

The new AML rules place a higher emphasis on thorough due diligence which increases the regulatory burden especially on the financial services and law firms. A wide range of risk factors must be considered for each client to be compliant with the latest AML requirements. These include: assessing risk of those clients based at a geographical distance or in a high-risk jurisdictions, considering complex or high-risk transactions and looking at the involvement of any politically exposed persons. This list is not exhaustive; so in addition to these factors, firms need to consider elements such as the source of funds or wealth and the circumstances of a transaction. Recording risk and due diligence is also a key part of the latest regulations; e.g. in-depth customer verification must be carried out and recorded, along with thorough risk assessments and evidence of decision making processes.

Can AML checks slow your business down?

There is no doubt that while these additional checks are a necessity to counter money laundering, they can present a significant burden for firms. Compliance responsibilities can put a huge strain on internal resources, diverting focus from the core activities of your firm and costing time and money.

How can AML software help?

Feature-rich, customizable AML software can significantly speed up compliance checks and deliver significant benefits, freeing up time for staff to concentrate on their core activities. Lawson Conner has its own managed compliance technology which can help clients potentially cut costs by 50-80%. The AML software addresses all the latest compliance requirements, ensuring that adequate AML checks and due diligence are carried out. It can cut time spent meeting regulatory requirements, generate business insights and meet evolving global compliance standards. Through configuring a simple initial process of identifying the risks to screen for, the agreed global AML standards and provision of client details, AML software can provide active case management, maintain an audit trail and continuously monitor clients and investors.

AML softwareLawson Conner can provide the AML software as a standalone service, or as a fully managed /outsourced package where a dedicated external team of experts do all the work. Whichever option you choose, the technology is guaranteed to slash your regulatory and compliance burden and prevent AML checks from slowing down your business.

At Lawson Conner, we have extensive experience in providing compliance services for financial services and law firms based all over the world. Our AML software platform makes the onboarding and continuous monitoring process particularly efficient and offers transparency to all stakeholders. – To find out how to improve AML processing and prevent time-consuming procedures from slowing your business growth, contact us today.