Evaluating AML Compliance Solutions: 7 Crucial Criteria You Shouldn’t Ignore

The ever-evolving landscape of compliance can feel like scaling Mount Everest in a blizzard. But fear not, compliance pros. By wielding an intelligent, adaptive screening solution, you can transform navigating regulations from a white-knuckled climb to a strategic trek towards success. The trick is, understanding what you need and how to get there.

First step: assess the current state and identify gaps

Kicking off your journey towards a successful selection and implementation of a new solution, platform, toolset, or application is all about revving up the process of evaluating your existing processes and systems. Before you can embark on a new path, it’s essential to grasp every nook and cranny of the capabilities and elements you’ll require to turbocharge your results beyond their current state. That means taking a careful look at data quality, false positive rates, manual processes, risk and list coverage, and reporting. Then, arm yourself with a set of criteria to drive your evaluation forward.

7 primary criteria for evaluating compliance screening systems

Here are seven primary criteria on which you should evaluate potential compliance screening systems.

1. Accuracy

Data quality and accuracy are crucial to ensuring you don’t miss any critical hits while minimizing the number of manual reviews. Choose a compliance system that uses a sophisticated, modern matching methodology that leverages the strengths and avoids the weaknesses of your customer data. Your solution provider should also offer sophisticated data quality solutions that can analyze, cleanse, de-duplicate, and identify hidden names in joint accounts and address lines within your customer records.

2. Efficiency/Workflows

Manual processes steal resources from your necessary day-to-day compliance work. Manual steps not only increase the potential of error, but they also increase your operating costs unnecessarily. The right compliance screening toolset should not only decrease risk, but also reduce manual interventions and their associated costs within your overall compliance screening, reviewing, and reporting program.

3. Automation & Batch Processing

Automated screening has become the expected norm in AML compliance. The integration of real-time screening into customer onboarding or payment processing systems typically reduces risk. Accurate results are imperative, as false positives during real-time transactions can have a negative impact on your customer interactions. For companies with large data files of customer records, an AML compliance screening system must be able to run the records in a batch process quickly and efficiently.

4. Migration Methodology

When evaluating new systems, it’s essential to evaluate a solution provider that has a wealth of experience performing implementations and system migrations. Find out if the provider can smoothly migrate your existing data and systems. Your new solution provider must be able to integrate all the work you have already done, saving you the redundant effort of re-reviewing previously resolved matches.

5. Performance & Scalability

Another important aspect regarding the solution’s performance is whether the system is scalable; that is, it should be able to handle your screening needs as the number of records in your database grows. Find out if the provider has other clients processing the same daily volumes as you, and if the solution can screen multiple client lists simultaneously.

6. Training

Your provider should offer both initial training during the implementation of your new system as well as advanced training for power users and administrators in whatever form is convenient for your team. This advanced training should allow your own employees to train new hires.

7. Data Agnostic

Today’s regulatory environment often requires organizations to screen beyond the standard lists such as OFAC SDN, HM Treasury, or OSFI. Your solution provider should be able to offer a wide range of compliance lists and support a variety of enhanced third-party data sets. It’s also important to consider all aspects of your data provider, including coverage, cost, and accuracy.

Be ready to tackle risks and regulatory demands

Imagine this: proactive risk identification, streamlined workflows, and agile adaptation to new complexities. Your team is empowered, informed, and future-proof. Your new system should efficiently position you to keep up with constantly expanding and evolving compliance regulations.

But evaluating solutions isn’t just about ticking boxes, it’s about building resilience, fostering trust, and unlocking growth. That’s the power of choosing the right compliance screening solution for your organization. Embrace the future of compliance, where proactive preparedness meets strategic advantage.